Private Sector Participation in Municipal Solid Waste Management: Lessons from LAC

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World Bank Experience in Landfill Gas and
Prospects for Indonesia
Dr. John Morton Environmental Specialist The
World Bank East Asia and Pacific Region
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• Overview
• Role of landfill gas management and carbon
  finance in Solid Waste Management
• The World Bank Experience
• Latin America example
• Some worldwide lessons
• Assessing prospects for Indonesia
• What could Indonesias waste produce
• Are there issues with quality of disposal sites
• Assessing the potential of your site

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The Role of Landfill Gas Management and Carbon
Finance in SWM
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The Role of Landfill Gas Management and Carbon
Finance in Solid Waste Management

• Common Problems in SWM
• Lack of well managed solid waste disposal sites.
• Scavengers
• NIMBY and lack of information and communication
• Insufficient recovery of costs and financing
  inhibits good operation
• Lack of strategic planning at central and
  municipal level
• Low management and technical capacity at a
  municipal level

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The Role of Landfill Gas Management and Carbon
Finance in Solid Waste Management
The World Bank and Landfill Gas Management

• Strategies for addressing solid waste issues

• Closure of open dumps and construction of
  sanitary landfills
• Promote decentralizaton and strategic planning
  mechanisms.
• Political dialog
• Create incentives for cost recovery systems
• Increase the knowledge on waste management
  practices to be able to take strategic decisions
• Include financing available for reducing
  greenhouse gas emissions as a tool to promote
  sound waste management practices.

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The Role of Landfill Gas Management and Carbon
Finance in Solid Waste Management
Reducing greenhouse gas emission from waste
Landfill Gas CH4 emissions
Composting or other treatment
Landfill Gas Collection
CO2
CO2
CO2
Electricity Generation
Flaring
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The Role of Landfill Gas Management and Carbon
Finance in Solid Waste Management
The World Bank and Landfill Gas Management

• WB Financing for reducing greenhouse gas
  emissions
• Global Environment Facility Grant funds
  available for investment financing for climate
  change initiatives.
• Carbon Finance Provides recurrent financing
  through purchases of carbon credits in exchange
  for monitorable and verifiable reductions in
  greenhouse gas emissions.

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The Role of Landfill Gas Management and Carbon
Finance in Solid Waste Management
The World Bank and Landfill Gas Management

• Role of landfill gas and carbon finance
  opportunities
• Improves landfill safety, reduces odors and local
  air pollution.
• Incremental financing represents a key incentive
  to promote good SWM practices
• Carbon finance can improve cost recovery and
  contribute to the financing of closure of open
  dumps, programs for scavengers and help construct
  sanitary landfills.

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The World Bank Experience
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The World Bank Experience
Latin America Experience

• Demonstration GEF projects
• Grants to establish first-of-a kind power
  generation model
• Uruguay, Maldonado
• 0.8 MW project
• Mexico, Monterrey
• 7 MW project

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The World Bank Experience
The World Bank and Landfill Gas Management
Latin America Experience

• Carbon finance projects High number of projects
  in Brazil, but also Argentina, Mexico, Peru and
  Uruguay. Private sector very active in Brazil and
  Argentina in replicating model.
• Mexico 2 landfill gas to energy (10 MW) and 1
  flaring project
• Brazil Novogerar 12 MW
• Argentina Olavarria flaring project
• Capacity Building
• Grants to finance pre-feasibility studies for 10
  landfills in Brasil, Colombia, México, Perú, y
  Uruguay
• Brazil WB partnership with public banks to
  finance landfill practices linked to carbon
  finance wholesale of carbon projects in the
  waste management sector.

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Worldwide Lessons Learned
The World Bank Experience
The World Bank and Landfill Gas Management

• Important to identify ownership of landfill gas
  and hence the seller of carbon credits
  Municipality, concessionaire division of carbon
  credits is possible
• Gas capture can be optimized by specific landfill
  engineering, but is only feasible when landfill
  is well managed (no scavengers, leachate
  treatment, etc.)
• Tropical countries produce more biogas in less
  time than in colder countries
• Energy generation is not always feasible, in many
  cases high taxes and transmission fees are
  prohibitive

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Assessing Prospects for Indonesia
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Prospects for Indonesia
The World Bank and Landfill Gas Management
Indonesias major urban centers produce nearly
10 million tons of waste/yr
Medan
Samarinda
Pontianak
Pakanbaru
Jambi
Padang
Balikpapan
Palembang
Banjarmasin
Tanjungkarang
Jakarta
Semarang
Ujungpandang
Surabaya
Bandung
Yogyakarta
Denpasar
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Prospects for Indonesia
What could this amount of waste do? Methane
emissions (m3/yr)
404 million m3 methane per year
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Prospects for Indonesia
What could this amount of waste do? Electricity
(MW)
79 MW of electricity
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i
Prospects for Indonesia
What could this amount of waste do? Revenues from
carbon finance (Rp bill/yr)
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3
2
4
2
5
2
7
2
4
40
7
6
11
9
2
3
Rp118 billion/yr
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Prospects for Indonesia
The World Bank and Landfill Gas Management

• Is the quality of disposal practices important?
• Favorable conditions Unfavorable
• Depth gt10 m lt5 m
• Cover Daily No cover
• Compaction yes none
• Liner yes none
• Leachate well drained not well drained
• Fires none frequent
• Scavengers none living on site

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Prospects for Indonesia

• Understanding the potential of your landfill

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• Terima Kasih