appliction of cdm to waste management projects in … · sewage treatment: methane capture: power...

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS Earthizenz Empowering Communities APPLICTION OF CDM TO APPLICTION OF CDM TO WASTE MANAGEMENT WASTE MANAGEMENT PROJECTS IN PUNJAB PROJECTS IN PUNJAB Presentation made to the CM Punjab on 29/06/06 M.P. Singh B. Tech.(Civil); M.I.E. (Mech.) Earthizenz email: [email protected] Geetika Kalha IAS Principal Secretary, Govt. of Punjab email: [email protected]

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Page 1: APPLICTION OF CDM TO WASTE MANAGEMENT PROJECTS IN … · Sewage Treatment: Methane Capture: Power Generation 2. Wet Garbage, Fruit & Veg. Market Waste Treatment 3. Industrial waste

APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

APPLICTION OF CDM TO APPLICTION OF CDM TO WASTE MANAGEMENT WASTE MANAGEMENT PROJECTS IN PUNJABPROJECTS IN PUNJAB

Presentation made to the CM Punjab on 29/06/06M.P. Singh

B. Tech.(Civil); M.I.E. (Mech.)Earthizenz

email: [email protected]

Geetika KalhaIAS

Principal Secretary, Govt. of Punjabemail: [email protected]

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Binding emission targets for Binding emission targets for industrialised countries (called Annex I industrialised countries (called Annex I Countries)Countries)

Voluntary participation of developing Voluntary participation of developing countries (called Noncountries (called Non--Annex I countries, Annex I countries, e.g. India)e.g. India)

What is Kyoto Protocol?What is Kyoto Protocol?

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

How is CDM relevant for such ProjectsHow is CDM relevant for such Projects??

Emission Emission capcap

Actual Actual emissionsemissions

Buyer

Carbon Credits

Carbon value ($)

Annex I CountryAnnex I Country Renewable energyRenewable energyCDM projectCDM project

IN the Host Country:

1) Projects reduce emissions

2) Projects Sequester Carbon.

By selling the carbon credits – CERs from a GHG reduction/ Carbon sequestering project to a buyer additional cash flow can be realised for projects.

Current value $25/CER

Current Fine $50, Fine will double in 2008

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Relevant Green House GasesRelevant Green House Gases

1)1) Carbon DioxideCarbon DioxideGlobal Warming PotentialGlobal Warming Potential 1* 1*

2)2) MethaneMethaneGlobal Warming PotentialGlobal Warming Potential 2121**

3)3) Nitrous OxideNitrous OxideGlobal Warming Potential Global Warming Potential 310310**

*Times Carbon dioxide* tCO2e

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

The concept of BaselinesThe concept of BaselinesG

HG

em

issi

ons

TimeProject

commissioned

“With project” emission level

“Without project” emission level(e.g. grid baseline)

Carbon credits

“The baseline for a CDM project activity is the scenario that reasonably represents the anthropogenic emissions by sources of greenhouse gases that would occur in the absence of the proposed project activity.”

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Bundling of Small Scale CDM & Bundling of Small Scale CDM & A/R CDM Project ActivitiesA/R CDM Project Activities

Small Scale CDM Projects can be bundled Small Scale CDM Projects can be bundled together.together.Upper limits for bundling exist.Upper limits for bundling exist.

This helps the tiniest of projects to benefit from This helps the tiniest of projects to benefit from the CDMthe CDM

Cost is further reduced after bundling.Cost is further reduced after bundling.

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Bundling Small Scale & Bundling Small Scale & Community development ProjectsCommunity development Projects

Bundlingorganisation

GHG GHG offsets offsets (tCO(tCO22))

CER buyers

CERsCERs

PaymentPayment((RsRs)) Payment ($)Payment ($)

FinancialInstitution

LoanLoan

RepaymentRepayment

ODA,Government,NGOs etc.

Validation, verification, PDD

PaymentPayment((RsRs/$)/$)

Grant/Funds ?Grant/Funds ?

Bio Methanation

VER Buyers

Small Scale Small Scale A/R ProjectsA/R Projects

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Possible Range of Projects Possible Range of Projects (Urban) for Punjab(Urban) for Punjab

1.1. Sewage Treatment: Methane Capture: Power Sewage Treatment: Methane Capture: Power GenerationGeneration

2.2. Wet Garbage, Fruit & Wet Garbage, Fruit & VegVeg. Market Waste . Market Waste TreatmentTreatment

3.3. Industrial waste Treatment & energy saving/fuel Industrial waste Treatment & energy saving/fuel switchingswitching

4.4. Avoidance of Nitrous Oxide emission.Avoidance of Nitrous Oxide emission.5.5. Low emission and high output brick kilns.Low emission and high output brick kilns.6.6. Energy conserving/waste disposal of Housing Energy conserving/waste disposal of Housing

Projects etc.Projects etc.7.7. Small Hydro ProjectsSmall Hydro Projects8.8. VertcalVertcal Shaft Brick KilnsShaft Brick Kilns9.9. Bricks from Fly ashBricks from Fly ash

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Possible Range of Projects (Rural)Possible Range of Projects (Rural)1.1. AfforestationAfforestation & Reforestation Projects& Reforestation Projects

2.2. AgriAgri--biomass based Energy Projectsbiomass based Energy Projects

a.a. BioBio--MethanationMethanation: Power Generation route: Organic : Power Generation route: Organic FertilizerFertilizer

b.b. Energy Generation by controlled CombustionEnergy Generation by controlled Combustion

3.3. Wastewater Projects: Methane Capture: Methane capture & Wastewater Projects: Methane Capture: Methane capture & Flaring: Organic FertilizerFlaring: Organic Fertilizer

4.4. Wastewater Cum Solid Waste Treatment: Methane Capture: Wastewater Cum Solid Waste Treatment: Methane Capture: Power Generation.Power Generation.

5.5. Avoidance of Methane & Nitrous Oxide emission from paddy Avoidance of Methane & Nitrous Oxide emission from paddy fields.fields.

6.6. Household level biogas plants treating organic farmyard, Household level biogas plants treating organic farmyard, kitchen, and biokitchen, and bio--wastes. wastes.

7.7. Solar energy.Solar energy.

8.8. Special Manure making PracticesSpecial Manure making Practices

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Case Study: Case Study: KishengarhKishengarh : Total : Total Waste Management& Waste Management& elecelec gengen

The Waste consists of:The Waste consists of:

Kitchen waste from a population of 20000 Kitchen waste from a population of 20000 = 2 tons/day= 2 tons/day

Cow dung from 500 cattleCow dung from 500 cattle = 6 tons/day= 6 tons/day

Fruit and vegetable market wasteFruit and vegetable market waste = 12 tons/day= 12 tons/day

Wastewater from 20000 population @100lpdWastewater from 20000 population @100lpd= 2 = 2 mldmld /day/day

The net methane capture/annum The net methane capture/annum = 164.5 Tons= 164.5 Tons

Certified Emission Reduction eligibilityCertified Emission Reduction eligibility = 2961tCO= 2961tCO22e/annume/annum

Translated into money this comes to Translated into money this comes to RsRs. 40,00,000/annum. 40,00,000/annum

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Case Study: Case Study: KishengarhKishengarh : Total : Total Waste ManagementWaste Management

The methane calculated above is capable of generating 100 KW The methane calculated above is capable of generating 100 KW (0.1MW) in a day running 24 hours.(0.1MW) in a day running 24 hours.At 80% efficiency, thisAt 80% efficiency, this =700 =700 MWhMWh per annumper annumEmission of replaced Emission of replaced electyelecty. = mixed cycle . = mixed cycle

= 0.4tCO= 0.4tCO22/MWh/MWhCarbon Credit Carbon Credit =280 tCO=280 tCO22

At current CER rate this comes to At current CER rate this comes to RsRs. 3,50,000 per annum.. 3,50,000 per annum.Revenue from Sale of Electricity @ Rs.2/Revenue from Sale of Electricity @ Rs.2/-- per unit, leaving 30 per unit, leaving 30 units per day for self consumption.units per day for self consumption.

= = RsRs. 10, 08,000 per Annum. 10, 08,000 per AnnumRevenue from Sale of 2 t of Organic Fertilizer @ Revenue from Sale of 2 t of Organic Fertilizer @ RsRs. 2/. 2/--

= = RsRs. 14, 60,000 per Annum. 14, 60,000 per Annum

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Case Study: Case Study: KishengarhKishengarh : Total : Total Waste ManagementWaste Management

Total Projected project cost Total Projected project cost = = RsRs. 400 . 400 LacsLacsLoan Amount (Say)Loan Amount (Say) = = RsRs. 200 . 200 LacsLacsTotal Revenues Generated Total Revenues Generated = = RsRs. 68.18 . 68.18 LacsLacs/Annum/AnnumLess Estimated O&M CostLess Estimated O&M Cost = = RsRs. 24.00 . 24.00 LacsLacs/Annum/AnnumNet Revenue before InterestNet Revenue before Interest = = RsRs. 44.18 . 44.18 LacsLacs/Annum/AnnumInterest on Loan Interest on Loan = = RsRs. 16.00 . 16.00 LacsLacs/Annum/AnnumNet Revenue EarnedNet Revenue Earned = = RsRs. 28.18 . 28.18 LacsLacs/Annum/AnnumReturn on InvestmentReturn on Investment = 7.05 %= 7.05 %

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

CDM Impact: Only Wastewater Treatment 1500 CDM Impact: Only Wastewater Treatment 1500 VillagesVillagesA total of 1500 villages are proposed to be A total of 1500 villages are proposed to be modernisedmodernised in Punjab. in Punjab. Assume an average population of 2000 per village.Assume an average population of 2000 per village.Total affected population Total affected population = = 2000*1500=2000*1500= 30, 00, 00030, 00, 000Sewage Generation @ 120LPDSewage Generation @ 120LPD == 360 MLD360 MLDProjected Biogas recovery/ day Projected Biogas recovery/ day == 40.50 Mt.40.50 Mt.Methane Recovery/day @70% Methane Recovery/day @70% == 28.35 Mt.28.35 Mt.Methane Recovery/AnnumMethane Recovery/Annum == 10,348 MT10,348 MTGlobal warming potential of methaneGlobal warming potential of methane = = 21t CO2 equivalent21t CO2 equivalentCO2 emitted while Flaring/t methaneCO2 emitted while Flaring/t methane == 3 MT3 MTNet Global Warming FactorNet Global Warming Factor == (21(21--3)=18t CO2e3)=18t CO2eNo. of No. of CERsCERs earned/annumearned/annum == 1,86,264 1,86,264 Value of these @ $25/CERValue of these @ $25/CER == $ 46,56,600$ 46,56,600

== RsRs. 23.28 . 23.28 crorescroresEarning potential over 10 yearsEarning potential over 10 years == RsRs. 233 . 233 crorescrores

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

CDM Impact: Combined Wastewater & Wet Garbage CDM Impact: Combined Wastewater & Wet Garbage Treatment 1500 Villages W/O Electricity Gen.Treatment 1500 Villages W/O Electricity Gen.Assume per capita wet garbageAssume per capita wet garbage = 0.100 Kg/day= 0.100 Kg/dayWet Garbage Generated/village Wet Garbage Generated/village = 200 Kg/Day= 200 Kg/DayAssume average of 500 cattle Assume average of 500 cattle Cow dung in one villageCow dung in one village = 6000 = 6000 KgsKgs/Day/DayTotal Degradable SolidsTotal Degradable Solids = 6200 = 6200 KgsKgs/Day/DayExpected Biogas Capture Expected Biogas Capture = 170 = 170 KgsKgs/Day/DayMethane Capture @ 70% Methane Capture @ 70% = 120 = 120 KgsKgs/Day/DayMethane Captured: 1500 villages Methane Captured: 1500 villages = 180 MT/ Day= 180 MT/ DayCER Potential/day @21CER Potential/day @21 = 3780 t CO2e= 3780 t CO2eAnnual CER Potential Annual CER Potential = 13,80,000 tCO2e= 13,80,000 tCO2eRevenue @ $25/CER/ annumRevenue @ $25/CER/ annum = $ 3,45,00,000/= $ 3,45,00,000/Revenue in Rupees/Annum for wet garbageRevenue in Rupees/Annum for wet garbage = = RsRs. 172.5 . 172.5 CroresCroresTotal Revenue (wastewater + solids)Total Revenue (wastewater + solids) = = RsRs. 195.8 . 195.8 CroresCroresRevenue in 10 years Revenue in 10 years = = RsRs. 1958 . 1958 CroresCrores

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Bundling of Household Level Bundling of Household Level Biogas DigestersBiogas Digesters

Household level digesters running on kitchen Household level digesters running on kitchen waste, cheap flour, and sugar cane wastes waste, cheap flour, and sugar cane wastes are now available.are now available.CowCow--dung can be added, if available.dung can be added, if available.World Bank has, in May this year, signed an World Bank has, in May this year, signed an Emission Reduction Purchase Agreement with Emission Reduction Purchase Agreement with Nepal for such plants.Nepal for such plants.In the case of Nepal even latrine waste goes In the case of Nepal even latrine waste goes through this biogas digester.through this biogas digester.

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Integrated Rural Sanitation and Integrated Rural Sanitation and biobio--energy productionenergy production

CROP & VEGETABLE WASTE

BIOMETHANATION

LEAFY BIOMASS WASTE

JATROPHA OIL

EXTRACTION

DEOILED CAKE

SEWAGE TREATMENT

PLANT

METHANE

DAIRY WASTEMANURE

POWER GENERATION

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Application of CDM: Ongoing Rural Application of CDM: Ongoing Rural Sanitation ProjectsSanitation Projects

Two Two CatagoriesCatagories::

1.1. Taken up by the GovtTaken up by the Govt.:.: Mostly Small bore settled Sewerage System Mostly Small bore settled Sewerage System is being used, with septic tank outside each house.is being used, with septic tank outside each house.Since Methane is let out into the atmosphere and cannot even be Since Methane is let out into the atmosphere and cannot even be flared, CDM will not be applicable to any of these projects.flared, CDM will not be applicable to any of these projects.

2.2. Taken up by Village Life Improvement Foundation:Taken up by Village Life Improvement Foundation: BrahmpurBrahmpur & & KharaudiKharaudi cannot qualify at this stage, since the projects are complete.cannot qualify at this stage, since the projects are complete.LangheriLangheri, , JianJian, , DeingrianDeingrian and and JandialaJandiala can qualify with fresh can qualify with fresh modifications.modifications.

3.3. DaulatpurDaulatpur:: This is yet to be taken up. We had received a query from This is yet to be taken up. We had received a query from the DC, the DC, NawanshaharNawanshahar, we had sent our recommendations to him. , we had sent our recommendations to him. This village is yet to be started.This village is yet to be started.

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Case Study: Solid and Liquid Waste Case Study: Solid and Liquid Waste Management: Management: NawanshaharNawanshahar

We were asked by DC We were asked by DC NawanshaharNawanshahar to suggest solid and liquid waste to suggest solid and liquid waste management for management for NawanshaharNawanshahar..Untreated Sewage is currently flowing into the Untreated Sewage is currently flowing into the beinbein. . Solids are being dumped outside the village.Solids are being dumped outside the village.We proposed:We proposed:

1) Collection of kitchen waste vegetable market waste, and dairy1) Collection of kitchen waste vegetable market waste, and dairywaste from waste from BangaBanga, , RahonRahon and and NawanshaharNawanshahar at proposed STP site and at proposed STP site and set up a set up a methanationmethanation plant there using the wastewater.plant there using the wastewater.

2) Treatment of sewage of 2) Treatment of sewage of NawanshaharNawanshahar by the UASB technology and by the UASB technology and capturing Methane.capturing Methane.

3) Removing the Hydrogen 3) Removing the Hydrogen SulphideSulphide gas from the Methane.gas from the Methane.

4) HARNESSING the Methane to generate electricity. 4) HARNESSING the Methane to generate electricity.

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

UASB ModuleBaffled Module

Pre-treatedinfluent

granularsludge

bedsludge blanket

downflowchamber

upflowchamber Vertical baffles

effluentgutter

solid media(plasitc

(beverage crates)

gas/liquid/solidsphase separator

settling zone

Modified Septic Tank/ Reactor for Primary Treatment

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Cost of Project & RevenueCost of Project & RevenueConstituents of the Project:Constituents of the Project:

Primary Sewage Treatment Section design year 2034Primary Sewage Treatment Section design year 2034Segregated Organic Waste Handling SectionSegregated Organic Waste Handling SectionHigh Rate Digestion Section High Rate Digestion Section -- Modified UASB Process: design year 2008: Modified UASB Process: design year 2008: 8mld sewage.8mld sewage.Modified two stage high Modified two stage high BiomethanationBiomethanation reactors. reactors. Aeration Section Aeration Section Disinfection sectionDisinfection sectionManure Handling SectionManure Handling SectionBiogas Collection Biogas Collection Scrubbing SectionScrubbing SectionPower Generation SectionPower Generation SectionFinal Disposal of Treated EffluentsFinal Disposal of Treated Effluents

Projected Cost of Project Projected Cost of Project 8 MLD Sewage8 MLD Sewage and and 30 TPD Organic solid 30 TPD Organic solid WasteWaste: : 700 700 lacslacs..Land required: Land required: 5 acres5 acres (Cost of acquisition not included)(Cost of acquisition not included)

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APPLICATION OF CDM TO WASTE MANAGEMENT PROJECTSAPPLICATION OF CDM TO WASTE MANAGEMENT PROJECTS

EarthizenzEmpowering Communities

Cost of project & RevenueCost of project & RevenueNet annual methane recoveryNet annual methane recovery = 412.5 MT= 412.5 MTCER Potential CER Potential =7424 tCO2e=7424 tCO2eAnnual Revenue from CDM (Methane)Annual Revenue from CDM (Methane) = = RsRs. 92,80,000. 92,80,000The methane calculated above is capable of generating 250 KW (0.The methane calculated above is capable of generating 250 KW (0.25 MW) in a 25 MW) in a

day running 24 hours.day running 24 hours.At 80% efficiency, thisAt 80% efficiency, this =1750 =1750 MWhMWh per annumper annumEmission factor of replaced Emission factor of replaced electyelecty. = mixed cycle . = mixed cycle

= 0.4tCO= 0.4tCO22/MWh/MWhCarbon Credit (Electricity Gen) Carbon Credit (Electricity Gen) =700 tCO=700 tCO22

Annual Revenue (Electricity Gen) Annual Revenue (Electricity Gen) ==RsRs. 8,75,000. 8,75,000Sale of Electricity @6000 units/daySale of Electricity @6000 units/day = = RsRs. 35,00,000. 35,00,000Annual Annual rev.fromrev.from 5 t fertilizer/ day @ 5 t fertilizer/ day @ RsRs. 2000/t . 2000/t ==RsRs. . 36,50,00036,50,000Total Revenue/AnnumTotal Revenue/Annum = = RsRs. 1,73,05,000. 1,73,05,000

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Return on Investment: Return on Investment: NawanshaharNawanshahar

Total Projected project cost Total Projected project cost = = RsRs. 800 . 800 LacsLacsLoan Amount (Say)Loan Amount (Say) = = RsRs. 600 . 600 LacsLacsTotal Revenues Generated Total Revenues Generated = = RsRs. 173.05 . 173.05 LacsLacs/Annum/AnnumLess Estimated O&M CostLess Estimated O&M Cost = = RsRs. 75.00 . 75.00 LacsLacs/Annum/AnnumNet Revenue before InterestNet Revenue before Interest = = RsRs. 166.05 . 166.05 LacsLacs/Annum/AnnumInterest on Loan Interest on Loan = = RsRs. 48.00 . 48.00 LacsLacs/Annum/AnnumNet Revenue EarnedNet Revenue Earned = = RsRs. 120.05 . 120.05 LacsLacs/Annum/AnnumReturn on InvestmentReturn on Investment = 15 %= 15 %

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Required return on

investment threshold

Project returnexcluding

CDM revenue

Project returnincluding

CDM revenue

CDMrevenue

CDM cash flow

The gap between

the project return and the

requiredreturn on

investment threshold

AdditionalityAdditionality

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AdditionalityAdditionality testtestNeed to prove the project would not have Need to prove the project would not have happened without CDMhappened without CDM

Some steps in the test: Some steps in the test: 1. Initial Project Stage: Proof of CDM 1. Initial Project Stage: Proof of CDM

influencing decision influencing decision --> Key for all projects stared before > Key for all projects stared before

registrationregistration2. Investment or barrier analysis2. Investment or barrier analysis

Projects that lack sufficient proof of Projects that lack sufficient proof of additionalityadditionalitybecome rejected by the CDM EB. become rejected by the CDM EB.

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Application of CDM to Ongoing Urban Application of CDM to Ongoing Urban Sanitation ProjectsSanitation Projects

Ongoing Urban Sanitation Projects Ongoing Urban Sanitation Projects under the under the SatlujSatluj Action Plan, may be Action Plan, may be made eligible for Carbon Credits, after made eligible for Carbon Credits, after restructuring the projects suitably.restructuring the projects suitably.Solid waste Management with the same Solid waste Management with the same wastewater will have a ballooning effect wastewater will have a ballooning effect on the revenues, as we have seen in on the revenues, as we have seen in the case of Rural Projects.the case of Rural Projects.

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Application of CDM to Ongoing Urban Application of CDM to Ongoing Urban Sanitation ProjectsSanitation Projects

The CDM eligibility as per existing structure is:The CDM eligibility as per existing structure is:1.1. LudhianaLudhiana: :

Total sewage from three plants= 311 MLDTotal sewage from three plants= 311 MLDMethane Recovery/annum = 8513 MTMethane Recovery/annum = 8513 MTCERsCERs = 1,53,000 tCO2= 1,53,000 tCO2Revenue Earning Capacity = Revenue Earning Capacity = 19 19 CroresCrores

2.2. Calculations for Calculations for JullunderJullunder would be on the same lines.would be on the same lines.

3.3. However, projects like However, projects like PhagwaraPhagwara etc., which are still in their etc., which are still in their nascent stagenascent stage can be conveniently altered to convert them can be conveniently altered to convert them into CDM Projects.into CDM Projects.

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The CDM ProcessThe CDM ProcessTask Responsibility

Step 1 Project Assessment EarthizenzStep 2 Project Financing Project Developer Step 3 Project Construction Project Developer and

Earthizenz and/or Executing agencyStep 4 Methodology Earthizenz/Consultant/buyerStep 5 Project Design Document Earthizenz/Consultant/buyer

BaselineCalculation of creditsMonitoring and verification plan

Step 6 Host Country Approval DNA (arranged by Earthizenz/GTZ)Step 7 Validation DOE (arranged by Earthizenz/GTZ)Step 8 Registration EB (arranged by Buyer)Step 9 Monitoring Project DeveloperStep 10 Verification DOE (arranged by EarthizenzStep 11 Issuance of CERs Executive Board

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Methodology CriteriaMethodology Criteria

A Methodology is the method for estimating carbon A Methodology is the method for estimating carbon emissions from a technology/projectemissions from a technology/projectIf a methodology exists, this simplifies the CDM If a methodology exists, this simplifies the CDM process.process.In the present case, methodologies exist. In the present case, methodologies exist. Methodology for Methodology for BiomethanationBiomethanation of MSW (of MSW (LucknowLucknow, , India) is approved by the CDM Board.India) is approved by the CDM Board.Small Scale Methodology for untreated wastewater Small Scale Methodology for untreated wastewater stream has now been added to the approved list.stream has now been added to the approved list.Methane capture and power generation Methane capture and power generation methodologies always existed.methodologies always existed.

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Selling your Selling your CERsCERs: risks!: risks!If the Project does not take off or does not deliver

Risks can be carried by the buyer or the seller. Examples:

-Buyer can take on the entire expected CERs or parts -Penalties in case CERs do not accrue

Price of CERs and risk go hand in hand

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Value of Carbon CreditsValue of Carbon CreditsA sale of A sale of CERsCERs made after issuance , fetches made after issuance , fetches the highest price ( currently $25, and the highest price ( currently $25, and expected to treble)expected to treble)But then the risk is all of the project But then the risk is all of the project developer.developer.Advance against Advance against CERsCERs: penalties for non: penalties for non--deliverancedeliveranceAdvance sale of Advance sale of CERsCERs: all risks and cost to : all risks and cost to the buyer’s account. Value goes down.the buyer’s account. Value goes down.

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Concept of Concept of VERsVERsVER is a verified emission reduction. Many VER is a verified emission reduction. Many Annex one companies trade in Annex one companies trade in VERsVERs. . These are mutual arrangements between These are mutual arrangements between buyers and sellers.buyers and sellers.They are verified by Designated Operational They are verified by Designated Operational entities in the Host country.entities in the Host country.Later approved by the host country.Later approved by the host country.They need not go to the CDM Executive They need not go to the CDM Executive Board for approval. These have the minimum Board for approval. These have the minimum risks as well as the minimum costs.risks as well as the minimum costs.These can be beneficial for very small These can be beneficial for very small projects.projects.

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Other ProjectsOther Projects

All renewable energy Projects.All renewable energy Projects.All housing Projects, energy saving, All housing Projects, energy saving, localized sanitation. localized sanitation. Upgrading Brick Kilns: VSBC, Fly ashUpgrading Brick Kilns: VSBC, Fly ashOrganic Fertilizer: Preventing N2O emissionOrganic Fertilizer: Preventing N2O emissionEmission of Methane & N2O from paddy.Emission of Methane & N2O from paddy.

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Suggested Road AheadSuggested Road Ahead

Project Idea Notes (PIN) should be got made Project Idea Notes (PIN) should be got made for all projects/Bundles that have CDM for all projects/Bundles that have CDM potential: just a prima facie ‘yes’ is required. potential: just a prima facie ‘yes’ is required. EarthizenzEarthizenz can do it at nominal cost.can do it at nominal cost.All ongoing and future projects must go All ongoing and future projects must go through a scanner for possible CDM benefits.through a scanner for possible CDM benefits.Ongoing Rural Projects should be reviewed, Ongoing Rural Projects should be reviewed, technology upwards. technology upwards. EarthizenzEarthizenz is already is already deeply involved in the selection of appropriate deeply involved in the selection of appropriate technology and its design. technology and its design.