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CDM in the Philippines: Avoiding carbon emissions Achieving sustainable development

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Jose Maria Zabaleta, Jr. Name. Project Proponent: First Farmers Sugar Mill ... Rizal Provincial Capitol Compound, Pasig City, Philippines. Address ... – PowerPoint PPT presentation

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Title: CDM in the Philippines: Avoiding carbon emissions Achieving sustainable development


1
CDM in the PhilippinesAvoiding carbon
emissionsAchieving sustainable development
  • Capacity Development for CDM
  • (CD4CDM) Side Event
  • COP 10, Bueños Aires, Argentina
  • La Rural centro de exposiciones
  • 11th December 2004

2
Contents
  • Process
  • DNA institutional structure
  • National approval criteria
  • Flowchart of the approval process
  • Documentary requirements for the proposed project
    proponent
  • Projects
  • Bagasse cogen
  • Waste to energy
  • Wind power
  • Reforestation

3
ProcessDNA in the Philippines
4
Executive Order No. 320
  • By the President of the Philippines
  • 25th June 2004
  • Designating the Department of Environment and
    Natural Resources (DENR) as the National
    Authority for the Clean Development Mechanism

5
Proposed SYSTEM FOR CDM NATIONAL APPROVAL
Approving Authority
Review Endorsement
6
Proposed CDM Steering Committee
DENR Department of Environment Natural
Resources DOE Department of Energy DOST
Department of Science Technology
7
Proposed Support Institutions
  • CDM Secretariat
  • Environmental Management Bureau (EMB) Central
    Office
  • Technical Evaluation Committee (TEC)
  • For Energy Projects
  • Lead Agency Department of Energy (DOE)
  • For Waste Management Projects
  • Lead Agency National Solid Waste Management
    Commission (NSWMC)
  • For Forestry Projects
  • Lead Agency Forest Management Bureau (FMB)

8
Proposed Philippine CDM National Approval Criteria
  • A Proposed Project shall be given national
    approval if it assists the Philippines in
    achieving sustainable development.
  • A Proposed Project shall be assessed using
    sustainable development criteria which are
    meaningful from a project level perspective and
    are in line with the Philippine Agenda 21.
  • A Proposed Project shall be evaluated using
    criteria for the three dimensions encompassing
    sustainable development economic, environmental
    and social.

9
Proposed Philippine CDM National Approval Criteria
  • Project level indicators, quantitative and/or
    qualitative shall be used to identify the
    sustainable development impacts of a Proposed
    Project.
  • Measures to mitigate significant negative impacts
    of a Proposed Project must be identified.
  • Methods to monitor the major sustainable
    development impacts of a Proposed Project must be
    identified.
  • The overall sustainable development impact of a
    Proposed Project must be positive.

10
List of Sustainable Development Criteria
  • A. Economic Dimension
  • Generates sustainable employment of local
    community
  • Provides livelihood and other economic
    opportunities in the community
  • Provides proper safety nets and compensatory
    measures for the affected minority
  • Uses cleaner, more efficient and
    environment-friendly technology

11
List of Sustainable Development Criteria
  • B. Environmental Dimension
  • Complies with environmental policies and
    standards
  • Provides local environmental benefits
  • Promotes sustainable use of natural resources
  • Protects and conserves local biodiversity

12
List of Sustainable Development Criteria
  • C. Social Dimension
  • Provides measures to alleviate poverty
  • Provides education and training which build the
    capacities of local stakeholders
  • Provides vulnerable groups access to local
    services
  • Promotes local participation in the project

13
DNA Approval Process
Submission of application documents
Verification / Confirmation
Payment of processing fee
Endorsement to appropriate evaluation committee
Monitoring Form
Assessment of project documents using the
National Evaluation Protocol (NEP)
with revisions
w/o revisions
Resubmission of revised project documents
Reassessment using the NEP
Submission of an Evaluation Report
Convening of the CDM Steering Committee
Assessment of Evaluation Report
Endorsement Report
Reviewing and issuance of Letter of Approval or
Disapproval
Releasing of Letter of Approval or Disapproval
and recording of all processed documents
14
DNA Approval Processing Time (35 to 45 Working
Days)
15
Documentary requirements for proposed project
proponent
  • Project Application Document (PAD)
  • More than a PIN but less than a PDD
  • Sustainable Development Impact Assessment (SDIA)
  • Documentation of Stakeholders Consultation
  • Downloadable from
  • www.klima.ph/cd4cdm

16
Contents of the Project Application Document (PAD)
  • General Description of the Project Activity
  • Demonstration of Additionality
  • Identification of Baseline and Monitoring
    Methodology
  • Identification of Baseline
  • Duration of Project Activity/Crediting Period
  • Calculation of GHG emission reductions
  • Contact information of project proponent

17
Sustainable Development Impact Assessment (SDIA)
  • Presents the sustainable development impacts of
    the Proposed Project in terms of economic,
    environmental and social effects.
  • Contains a comparative analysis of the
    sustainable development impacts of the baseline
    case and the Proposed Project.
  • Identifies mitigation measures of significant
    negative impacts, and measures to monitor major
    sustainable development impacts.

18
Drafts downloadable
  • Draft Rules and Regulations
  • Draft Templates PAD, SDIA, National Evaluation
    Protocol
  • Downloadable from
  • www.klima.ph/cd4cdm

19
II. Projects
20
News flash!!!
  • 1st ERPA for the Philippines signed, 9th December
    2004
  • 25 MW Wind Farm Project
  • Northern Luzon
  • Biggest wind farm in Southeast Asia
  • 15 wind turbines
  • CER Buyer WB Prototype Carbon Fund
  • 356,000 tCO2e for 10 years

21
NORTHWIND POWER PROJECT 25 MW Bangui Bay, Ilocos
Norte
22
Bagasse Cogeneration Plants Grid Connected
  • First Farmers Sugar Mill (30 MW)
  • Estimated emission reduction of 54,457 to 133,466
    tCO2e annually
  • Victorias Sugar Mill (50 MW)
  • Estimated emission reduction of 258,583 tCO2e
    annually
  • Bogo-Medillin Sugar Mill (25 MW)
  • Estimated emission reduction of 35,400 tCO2e
    annually

23
FIRST FARMERS SUGAR MILL 30 MW Talisay City,
Negros Occidental
24
Baseline Scenario First Farmers Sugar Mill

CO2e Emissions
Baseline scenario CO2 emissions (that would
occur) Diesel, bunker fuel, external
electricity purchased (sugar mill) fossil fuels
supplied to the Visayas Grid
54,457 to 133,466 tCO2 annually
CO2 emissions reduction
CDM project (Bagasse Cogeneration Plant) CO2e
emissions (observable)
Years
25
Project Activity First Farmers Sugar Mill
26
  • First Farmers Sugar Mill (30 MW)
  • Key Benefits
  • Reliable and secure electricity supply
  • Reduction in local SOX and NOX emissions
  • Open burning of cane residues on the field will
    no longer be practiced
  • Demonstration of advance clean combustion and
    efficient generation technology

27
Project Financing First Farmers Sugar Mill
Total Project Costs US 60 million
Sources Equity (from Bronzeoak Group, Zabaleta
Co. and others) Debt (from local and
global investment banks and private
sectors) Carbon Finance
28
Project Proponent First Farmers Sugar Mill
29
Waste to Energy Project
  • Central Azucarera de Tarlac (CAT) Distillery
    Waste to Energy Plant
  • Methane capture from waste water
  • 2 MW power plant for use by the sugar mill
  • Estimated emission reduction potential of 54,000
    tCO2e annually

30
CENTRAL AZUCARERA DE TARLAC (CAT) Waste to
Energy (2 MW) Hecienda Lusita, Tarlac City
31
Baseline Scenario Central Azucarera de Tarlac
(CAT) Distillery Waste to Energy Plant

CO2e Emissions
Baseline scenario CO2e emissions (that would
occur) Waste water coming from the distillery
54,000 tons of CO2 annually
CO2 emissions reduction
CDM project (CAT Waste to energy) CO2e emissions
(observable)
Years
32
  • Central Azucarera de Tarlac (CAT) Distillery
    Waste to Energy Plant
  • Key Benefits
  • Reduction in wastewater contaminants
  • Recover biogas, a renewable fuel
  • Community development projects for people in the
    surrounding barangays (i.e micro lending
    programs)

33
Project Proponent CAT Distillery Waste to Energy
Project
34
Wind Power
  • North Luzon Wind Power Project
    (Phase I)
  • Total installed capacity of 42 MW
  • Estimated emission reduction potential of 78,300
    tCO2 annually
  • Aims to address the power supply shortfall
    projected for the Luzon grid by 2008
  • Benefits the whole province of Ilocos Norte

35
NORTH LUZON WIND POWER PROJECT 42 MW Burgos,
Ilocos Norte
36
Baseline Scenario North Luzon Wind Power Project

CO2 Emissions
Baseline scenario CO2 emissions (that would
occur) Coal-based power plants supplying the
Luzon Grid
78,300 tons of CO2 annually
CO2 emissions reduction
CDM project (North Luzon Wind Power) CO2
emissions (observable)
Years
37
Project Activity North Luzon Wind Power Project
38
  • North Luzon Wind Power Project (Phase I)
  • Key Benefits
  • Reduce the countrys dependence and purchase of
    imported fuels
  • Increased employment opportunities

39
Project Financing North Luzon Wind Power Project
Sources Equity (PNOC-EDC) Debt
(JBIC) Carbon Finance
40
Project Proponent North Luzon Wind Power Project
41
Wind Power
  • San Carlos Wind Farm
  • Total installed capacity of 30 MW
  • Estimated emission reduction potential of 39,694
    tCO2 annually (2006) and 52,685 tCO2 annually
    (starting 2007)

42
SAN CARLOS WIND FARM 30 MW San Carlos City,
Negros Occidental
43
Baseline Scenario San Carlos Wind Farm

CO2 Emissions
Baseline scenario CO2 emissions (that would
occur) Fossil fueled power plants supplying
the Visayas grid
39,694 tCO2 (2006) 52,685 tCO2 (starting 2007)
CO2 emissions reduction
CDM project (San Carlos Wind Farm) CO2 emissions
(observable)
Years
44
Project Activity San Carlos Wind Farm
45
  • San Carlos Wind Farm
  • Key Benefits
  • Reduction of electricity rate per consumption
  • Ushers eco-tourism in the area and other
    livelihood projects
  • Reduce the countrys dependence and purchase of
    imported fuels
  • Increased employment opportunities

46
Project Financing San Carlos Wind Farm
Sources Equity (30 of project costs)
Debt (70 of project costs)
47
Project Proponent San Carlos Wind Farm
48
Carbon Sequestration
  • Tanay Micro Watershed Project
  • Reforesting 70 ha of private land
  • Establishing 25 ha of agroforestry farms in
    public land
  • Sequestering 5,000 to 12,000 tCO2 from the
    atmosphere in 20 years

49
Tanay Micro Watershed Project Tanay, Rizal
50
Project Proponent Tanay Watershed Project
51
Maraming salamat!
  • Roberto C. Yap, Ph.D.
  • Environmental Economist
  • klima Climate Change Center
  • Manila Observatory
  • Philippines
  • Tel 63 2 426-6144
  • Fax 63 2 426-6070
  • rcyap_at_ateneo.edu
  • www.klima.ph/cd4cdm
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