The project objective is to improve municipal solid waste management practices to meet the increasing demand and reduce methane gas emissions by introducing solid waste source separation programmers, specifically to increase the diverting rate of organic waste.
OBA/ RBF features:
“Incentive payments” (i.e., cash awards) are given to participating high-rise communities if they successfully separate organic waste from all other wastes. Separated organic waste will be evaluated on pre-determined quality and quantity measures, such that communities will receive a final overall score. The communities, through organized high-rise management committees (HMCs), will receive an incentive payment based on this score, subject to both a minimum score and a maximum incentive payment ceiling. (The program cycle is four months long, with two months of evaluation.)
Climate mitigation features:
Diverting organic waste from being disposed into landfill would prolong the service life of the landfill, reducing the costs of solid waste management, and contributing to climate change mitigation by reducing the amount of methane, a potent greenhouse gas. As organic waste is the largest fraction of waste going to the landfill in Penang,successful source separation will contribute to the financial and environmental sustainability of the waste sector.
World Bank: Pilot Auction Facility for Methane and Climate Change Mitigation (PAF)
Project Scope:
The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) was launched in 2014. The primary goal of PAF is to “stimulate investment in projects that reduce Greenhouse Gas (GHG) emissions while maximizing the impact of public funds and leveraging private sector financing.
RBF/Carbon Finance features:
The PAF is designed to set a floor price for future carbon credits; this is done by arranging it into a put option which is allocated through auctions. The put option is embedded into bonds, which are issued by the World Bank and whose obligations are backed by the PAF. If the carbon prices in the market are above the strike price of the put option, then the bond owners benefit from the “high” price. If the carbon prices fall below the strike price, then the owners have the right to sell the carbon credits to PAF at the strike price. This arrangement takes away market risks from the investors who invest in methane mitigation projects.
Resources of PAF are disbursed only against verified emission reductions in unit of $/tCO2e. The eligible standards include CDM or voluntary standards such as Verified Carbon Standard or Climate Action Reserve.
Climate Features:
The first phase will target at projects that reduce methane emissions at landfill, animal waste, and wastewater sites. The first round of auction was conducted in July, 2015, with price guarantees cleared at $2.4 USD per credit for 8.7 million tons of CO2 emission reductions.
The objective of the project is to increase diversion rate of municipal solid waste through the introduction of composing practices.
RBF/Carbon Finance features:
The project is registered as a Clean Development Mechanism (CDM), and is financed through a combination of equity and long-term debt. The revenue stream from the emission reduction credits designed cover the project’s operational costs. Lahore Compost (Pvt) Limited staff is responsible for monitoring, evaluation and reporting on the project status. The Monitoring and Verification (M&V) plan includes metering, monitoring, calculating, and verifying emissions reductions. Carbon credits was gained upon the verification of emission reduction. Debts are also expected to be recovered through compost sales revenue.
Climate Features:
Composting in a scientifically designed plant improves the local environment by reducing health hazards created by the solid waste collected in open dumpsites, and also sequesters the emission of methane (a major greenhouse gas) generated during anaerobic decomposition of biodegradable matter The project will lead to an estimated reduction of emissions at 4.5 million tCO2e during 2008-2026.
In addition to its the climate mitigation features, the project offers a promising model for substantially reducing waste disposed of in landfills; reducing environmental and health hazards; recycling valuable materials; providing compost for agriculture; providing employment opportunities; and supporting private sector investment and participation in the provision of such municipal services.
The objective of the project is to reduce the methane pollution and greenhouse impact, attributed to waste disposal process in the city of Monterrey in Mexico, either through its capture and use as a fuel for power generation or through flaring.
OBA/ RBF features:
The emission reductions is verified annually by an accredited organization. Payments to the sponsor will occur upon completion of this independent verification process. The purchase of Certified Emissions Reductions (CERs) under this project effectively means that transfer of funds is based on the performance of the project – measured by the actual reduction of GHG emissions. The Danish Carbon Fund (DCF) purchases the first one million CERs generated by this project. Under this arrangement, the project’s sponsor has a clear incentive to maximize the recovery of the LFG, since the sponsor’s revenues from the project are directly proportional to the amount of LFG collected and burned.
Climate mitigation features:
The project yielded a destruction of 2 million tons of CO2e in 10 years, sustained 5.3 MW power plants and produced 58,250,000 kWh of electricity with the recovered Landfill Gas (LFG). The main social and environmental benefits from improved landfill gas management practices will be a positive effect on health and local environment. The project will also create employment in the local area and will supply renewable energy to the grid.
Blog » Solid Waste Management OBA/RBF Schemes with Climate Mitigation Benefits
Solid Waste Management OBA/RBF Schemes with Climate Mitigation Benefits
World Bank: Pilot Auction Facility for Methane and Climate Change Mitigation (PAF)
Mexico: Landfill Methane Management Project