CDM PoA Case Study: Uganda Composting Program

Introduction to Programmatic CDM

Case Study:

Uganda Composting

Programme

December 2010

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CDM PoA Case Study: Uganda Composting Program

About this Presentation

This case study examines the Uganda Composting Project to illustrate how the Programme of Activities can be applied in practice.

You will review each of these aspects of the project within this presentation.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

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CDM PoA Case Study: Uganda Composting Program

Background

• First PoA in Africa

• Waste disposal is a main environmental concern of urban areas in Uganda.

• Municipal solid wastes (MSW) are disposed in landfills and dumpsites that are often located close to wetlands or sensitive ecosystems.

• Contamination occurs by leachate generated from landfills due to heavy rainfalls.

• Landfills emit significant amount of methane into the atmosphere. Methane is a potent greenhouse which has a Global Warming Potential 21 times larger than that of CO2.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

The Proposal

• The Municipal Waste Compost PoA proposes to recover the organic matter from MSW, implement a composting process to avoid methane emissions and contaminated water leachate.

• This is a voluntary action by the municipalities as composting of waste is not mandated.

• The geographical boundary of the PoA is restricted to Uganda

• 9 (nine) Municipalities (sites) are completed and operational, and 8 others may join in the future.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Technical Measures

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The technology used for solid waste composting is aerobic windrow composting. This involves formation of windrows of specific dimensions, regular turning of the windrows and final removal of composted material from the windrows at the end of the composting/maturation cycle for screening, etc.

Compost plants are set up at each of the municipalities, representing a CPA, with the equipment and facilities to undertake aerobic composting. The facility is covered with a roof to avoid run-off and excess leachate generation due to rainwater percolation through the wastes. The leachate from the waste is collected in tanks and used for wetting the windrows. The compost is screened using simple manual sieving equipment which will be upgraded as required in future.

While each CPA has the flexibility to distribute the compost differently, they will develop a marketing plan together with an awareness and educational program that will help them to commercialize the produced compost within the farming community and the residents.

Step 1: Municipalities collect MSW at facilities

Step 2: Transport MSW to Compost Facility

Step 3: Aerobic composting of the MSW occurs

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Coordinating/Managing Entity (CME)

• The National Environment Management Authority of Uganda (NEMA) is the Coordinating/Managing Entity (CME).

• NEMA provides capital investments for all the compost plants (projects) with the understanding that the investments will be recovered from the CDM revenues.

• NEMA provides the technical knowhow and training support to the municipalities for operation of the compost plants.

• Transfer of appropriate technology is supported by the World Bank through NEMA.

• MOU signed between NEMA and Councils. NEMA retains a percentage of the CERs to recover capital investments. Councils retains a percentage of CERs to cover the Operations and Maintenance costs.

• Urban councils undertake and EIA and provide land, infrastructure, utilities, personnel, collect and sort waste, and sell composted manure.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Project Financing considers two elements 1) A World Bank, IDA (International Development Association) Loan under the “Environmental Management and Capacity Building Project II” for Uganda. Uganda intends to use part of this loan to improve municipal solid waste management in cities and municipalities through the proposed municipal waste compost program. 2) The expected stream of CDM revenues. The Municipalities will transfer their CER rights to NEMA in lieu of the investments received for the CPAs. NEMA will sell the CERs as a “block” to the Community Development Carbon Fund (CDCF) of the World Bank. NEMA utilizes part of the revenues obtained from the sale of the CERs and makes payments to the other operators to cover operational costs.

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Financing Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Financing

Operating Framework

CDM PoA Case Study: Uganda Composting Program

The Operating and implementing framework for the Programme consists of funding and technology flowing down from agencies to the project, while the CERs flow up from the project to the appropriate agencies.

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Government of Uganda

National Environment

Management Authority

(NEMA)

Town/City Municipal

Council

Composting

Project Area improvement using

part of CDM funds

World

Bank

Fund

Flow

Technology/K

now How

CER

Flows

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Operating Framework

The Municipalities transfer their CER rights to NEMA in lieu of the investments received for the CPAs. NEMA sells the CERs as a “block” to the Community Development Carbon Fund (CDCF) of the World Bank. NEMA utilizes part of the revenues obtained from the sale of the CERs and makes payments to the other operators to cover operational costs.

Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

CPA’s Eligibility and Requirements

• The Composting projects would be implemented by the individual municipalities.

• Each municipality is considered a CDM Programme Activity (CPA), with only one CPA per municipality.

• The municipality would have signed a cooperation agreement with NEMA to participate in the Programme, and to transfer the emission reduction rights to NEMA.

• The municipality shall take responsibility for operating the compost facility and landfill, as per the guidelines and training provided in the program, which includes providing land, access roads and draining systems, and operating the composting facilities.

• Each Municipality collects and transports the waste to the composting site. Initially, waste separation takes place on site, but the long-term plan is to encourage separation at the source.

• Municipalities also implement environmental impact assessments.

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More>

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

CPA’s Eligibility and Requirements

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Location of CPAs/Sites for MSW Composting

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Methodology

The Programme is based on the approved SSC methodology AMS III F Version 6, Scope 13, titled “Avoidance of Methane emissions through controlled biological treatment of biomass”. This methodology can be applied for this particular case, because it meets the following conditions:

• The Programme activity involves the following waste treatment option for the fresh waste that in a given year would have otherwise been disposed of in a landfill, namely: a composting process in aerobic conditions.

• The proportions and characteristics of different types of organic waste processed in the Programme activity can be determined, in order to apply a multiphase landfill gas generation model to estimate the quantity of landfill gas that would have been generated in the absence of the Programme activity.

• Waste handling in the baseline scenario shows a continuation of current practice of disposing the waste in a landfill and environmental regulation does not mandate the treatment of the waste using composting.

• The CPA is small scale as the emission reduction is less than 60,000 t CO2e.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Additionality

• Investment barriers: The financial analysis shows that the current practice of disposing wastes in the landfills is the least costly alternative.

• The sensitivity analysis shows that potential revenues from compost sales do not justify the investment in a composting plant, in the absence of carbon revenues.

• Technology barriers: Compost plants are not available in Uganda, hence the technological risks associated are high.

• Also, composting is not a prevailing practice. Most MSW is disposed in landfills, without methane destruction/recovery.

<Back | Next> Select Next to continue

Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

CDM Operations and Monitoring Manual

It includes two main aspects:

1. CDM Operations Manual for CPA’s.

2. CPA Training.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Monitoring plan

• Monitoring Reports are guided by NEMA

• NEMA ensures that CDM requirements are met, for credits to be verified.

• A Monitoring Plan facilitates accurate and consistent monitoring of the CERs.

• A CDM Management Unit has been established within NEMA to manage the preparation and implementation phases of the CDM PoA.

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

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• Cleaner Towns with reduced disease outbreaks

• Created employment, & thus income

• Farmers have improved agric yields

• Project host Community benefits (Water, electricity, roads, health, schools, farming-demos, capacity building, climate change awareness)

• Cut down production of methane (climate change mitigation), and bad smell from dumpsites

Benefits:

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Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

CDM PoA Case Study: Uganda Composting Program

Further Reading

• Link to 10 years of Experience in Carbon Finance

• Link to PoA Blueprint Book. Guidebook for PoA Coordinators under CDM/JI. Published by: KfW Bankengruppe.

• Link to A Primer on CDM Programme of Activities

• Link to UNFCCC –Uganda Municipal Solid Waste Project (PoA-DD)

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End of Presentation

Background

The Proposal

Technical Measures

Coordinating/Managing

Entity (CME)

CPA’s Eligibility

Methodology

Additionality

Further Reading

Monitoring plan

CDM Operations and

Monitoring Manual

Benefits

Operating Framework

Financing

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