DEVELOPMENT OF A CDM METHODOLOGY FOR RECYCLING ACTIVITIES Charles Peterson Julie Godin World Bank ISWA / APESB 2009 World Congress Lisbon, Portugal
Introduction World Bank - Who we are - What we do in waste management Solid waste / recycling and climate change Recycling methodology under CDM (Clean Development Mechanism)
World Bank Founded 1944 for post-war reconstruction Role to alleviate poverty in developing countries -Poverty: earn less than $2 per day Organization - International Bank for Reconstruction and Development (IBRD) - International Development Association (IDA) - International Finance Group (IFC) - Multilateral Investment Guarantee Agency (MIGA) - International Centre for Settlement of Investment Disputes (ICSID)
World Bank Municipal Waste Management Loans - Technical / operational, institutional, financial, capacity building - Project examples (pipeline, current, recently completed) o Brazil o China, Tianjin o Columbia o Jordan, Amman o Maldives o Morocco o Nigeria, Lagos o Uzbekistan, Tashkent Carbon finance (CDM) Technical Assistance
World Bank Carbon Funds 4 Specialty funds/facilities Prototype Carbon Fund: Pioneering Kyoto mechanisms since 2000 Community Development Carbon Fund: Small projects that measurably benefit poor communities 6 Country funds/facilities Netherlands Clean Development Mechanism Facility Netherlands European Carbon Facility (jointly managed with IFC) Spanish Carbon Fund BioCarbon Fund: Land use, land-use change and forestry projects Umbrella Carbon Facility Tranche 1: Focused on two China HFC 23 projects Italian Carbon Fund Danish Carbon Fund Carbon Fund for Europe (jointly managed with EIB)
CDM and Waste Sector Fugitive emissions (others) 1% Fugitive emissions from fuels 6% Solvent use 0% Metal 0% Mining/mineral 1% Transport 0% Construction 0% Chemical industries 3% Manufacturing industries 5% Energy demand 1% Energy distribution 0% Afforestation and reforestation 0% Waste 18% Agriculture 5% Energy Projects 60%
Project Cycle Project Idea Note (PIN) Letter of Intent (LOI) Project Design Document (PDD) Validation Emission Reduction Purchase Agreement (ERPA) Registration Verification / Certification Carbon payment tied to certified performance - Operations revenue - Contributes to sustainable operation - Mitigation of climate change
Solid Waste and Climate Change Kyoto Protocol - Reduce greenhouse gas emissions that lead to climate change - Waste: 4 th largest source of non-co2 GHG emissions Carbon finance / Clean Development Mechanism (CDM) - Developed countries purchase ERs from developing countries - CDM approved methodologies define o Baseline o Additionality o Monitoring protocol - Bank involvement in development of 52 methodologies
Solid Waste and CDM Methodologies Approved waste methodologies - Landfill gas capture with flaring / energy use - Methane avoidance: aerobic composting, incineration, etc - Approved methodologies based on methane from landfill No methodology for recycling - Recycling: GHG ERs on life-cycle basis vs. virgin feedstock - Baseline: existing level of recycling for targeted material - Additionality: GHG ERs due to CDM incentives o Project boundary - Monitoring protocol
Recycling Developing Countries Waste pickers informal recycling at collection points / disposal sites Estimated 15 million waste pickers in developing countries Children and women, often work as pickers Waste picking unhealthy work environment CDM methodology under development by World Bank Waste Pickers: Tashkent, Uzbekistan Conakry, Guinea
CDM Methodology - Recycling World Bank is pursuing development of recycling methodology - Small-scale modalities and rules (ERs <60,000 tco 2 e / year) - Simplified rules and monitoring protocol - Project Design Document (PDD): recycling program o Buenos Aires, Argentina Recyclable material - Plastics (HDPE / LDPE) - Other materials added in future: metals, paper, glass, etc
Recycling Project - PDD (Project Design Document Buenos Aires project -Recycling plants (8), run by local communities living in extreme poverty - The so called social plants will hire about 40 people / plant - CEAMSE will collect the waste, provide the land, infrastructure and equipment necessary to operate - Carbon revenues will support O&M costs.
CDM Methodology CDM methodology: UNFCCC approves procedures to determine emission reductions from a project activity over time including: - Determination baseline and project scenario emissions - Monitoring requirements - Determination of additionality (i.e., the project is not the business as usual scenario) CDM methodologies are proposed by project developers (bottom-up approach) once approved, a methodology may be used for other projects meeting the applicability criteria
Recycling Methodology Currently developed as a small-scale methodology (emission reductions < 60 ktco2e/y) for recycling of plastic Eventually will be expanded to paper, glass and metals Emission reductions: - Difference in energy/electricity use for the production of material from virgin inputs versus recycled inputs - Follow Life Cycle Assessment approach: o Virgin material : from extraction of feedstock to manufacturing o Recycled inputs: from collection to manufacturing
Estimating Emission Reductions Default emission factors are provided in the methodology for energy/electricity use and material loss - Comprehensive literature review, conservative approach Determine quantity of waste to be recycled per material type Determine energy/electricity consumption at recycling plant
ER y = i BE y Estimating Emission Reductions PE BE y = LB,i,y * BEPM,i * ri Where: Where: y PE y = LB i, y *( PER, i, y + PEPM, i, i, y ) BE y : Baseline emissions in year y (tco 2 e/y) Material i (i = 1,2,3...i) L B,i,y : Quantity of material material i irecycled in year y (tons of material i/y) BE PM,i : Emissions generated for production of material i produced from virgin inputs per ton of material i (tco 2 e/ton of material i) - energy/electricity only r i : Ratio to account for material loss during recycling, specific to material i PE y : Project emissions in year y (tco 2 e/y) Material i (i = 1,2,3...i) L B,i,y : Quantity of material i recycled in year y (tons of material i/y) PE R,i,y : Project emissions at recycling facility (energy consumption) PE PM,i,y : Project emissions from production of material i from recycled inputs per ton of material i (tco 2 e/ton of material i) - energy/electricity only
Monitoring Mass: all recyclables entering the plant (M SPT,y ) and material i and (L B,i,y ) Electricity consumed at the recycling facility (EG SP,i ) Amount of fossil fuel type j combusted at the recycling facility (FC SP,i ) Sale price of recycled material i is monitored and reported annually, sale receipts are collected for annual verification Emission factor for the electrical grid system (EFgrid) Net calorific value of each fuel used at recycling facility (NCV j ) The weighted average CO 2 emission factor of fuel type j (EF CO2,j )
Methodology Timeline - Schedule Submited to SSC WG in December 2008 WB has provided responses to two rounds of questions methodology is still under revision (i.e., not rejected/approved yet) Pending issues: - Material loss discount shall cover material loss due to recycling and properties loss (e.g., bags made from recycled DPE need to be 50% thicker than bags made of virgin LDPE). Corrective action: reviewing factor (ri) - Default values for energy/electricity use - not universally applicable. Corrective action: reviewing default value for different developing countries
Thank you Charles Peterson (cpeterson@worldbank.org) Julie Godin (jgodin@worldbank.org)
World Bank: www.worldbank.org Additional Information World Bank s Carbon Finance Unit: www.carbonfinance.org World Bank s Urban Solid Waste Management: http://go.worldbank.org/a5tfx56l50 2006 IPCC Guidelines for National Greenhouse Gas Inventories, Volume 5: Waste http://www.ipcc-nggip.iges.or.jp/public/2006gl/vol5.html UNFCCC's CDM: http://cdm.unfccc.int/index.html