CDM for Local Governments : An innovative approach for lake basin management

Transcription

1 CDM for Local Governments : An innovative approach for lake basin management Adelina C. Santos-Borja Chief, Research and Development Team Leader, Carbonshed Project Laguna Lake Development Authority Philippines Presented at the CDM for Local Governments Session Parallel Event to the UN Climate Change Conference Organized by ICLEI, Japan Office Badung Room, Grand Hyatt Bali Nusa Dua, Bali, Indonesia 10 December 2007 THE PHILIPPINE ARCHIPELAGO THE LAGUNA DE BAY BASIN 1

2 THE LAGUNA DE BAY REGION PROVINCES Total no. of cities = 14 Lakeshore municipalities = 25 Non-lakeshore municipalities = 22 Total no. of barangays = 2,655 TOTAL AREA: 3880 km 2 including the 900 km 2 lake 2

3 Threats: impacts of economic development Results: Pollution and sedimentation of the lake PIONEERING INTERVENTIONS Laguna de Bay Institutional Strengthening and Community Participation Project (LISCOP) ( ) Laguna de Bay Community Carbon Finance Project (Carbonshed Project) ( ) 3

4 61 LGUs OBJECTIVES of LISCOP 1. Improve the environmental quality in the Laguna de Bay basin by engaging Local Government Units (LGUs) and other stakeholders in implementing environmental sub-projects. Stakeholders POLICYMAKERSAND PLANNERS NEDA DBM DTI/BOI BFAR DA PRRC MMDA Laguna debay Region INFRASTRUCTURE DEVELOPERS REGULATORS DENR LWUA NWRB HLURB LLDA 2. Ensure that Laguna de Bay and its watershed are managed effectively and in a sustainable manner by strengthening the capacity of institutions in environmental governance. R&D INSTITUTIONS NGOs DPWH LWUA/ LWD NHA PRA MWSS LGUs Provinces Municipalities Cities Barangays ResourceUserCommunities - Industries - Managersofprotected - Fishpenopeators - Business areas - UplandCommunities - Fisherfolks - Households - Communityrepresentatives - Farmers (committeeandcouncils) COMPONENTS COMPONENT I: Co-Managed Investments for Watershed Development COMPONENT 2: Strengthening Institutions and Instruments US $ 5 Million (Php 260 million) : World Bank Loan US $ 5 Million (Php 260 million) : Dutch Gov t Grant US $ 2.2 Million (Php 113 million) : GOP Counterpart 4

5 Laguna de Bay Watershed Environmental Action Planning (LEAP) - basic framework is the microwatershed Measures Laguna Lake Development Authority Laguna de Bay Community Carbon Finance Project (Carbonshed Project) Being implemented through a grant from the Japan Trust Fund Special Program on Climate Change Initiatives which the World Bank administers Grant amount:us$358, Duration: June 2004-June 2006, extended to March 2008 Buyers of Emission Reductions are the Community Development Carbon Fund (CDCF) and the BioCarbon Fund (BioCF) which are managed by the World Bank. 5

6 CARBONSHED PROJECT OBJECTIVES: Build the capacity of LLDA as an intermediary to enable small-scale environmental projects to result in certifiable emission reductions (CERs). To implement carbon emission reducing interventions, such as waste management and erosion reduction in order to address priority environmental issues: pollution and sedimentation of the lake. CARBONSHED PROJECT OBJECTIVES: to mitigate the emission of greenhouse gases by engaging the cooperation and participation of local government officials and communities with the purpose of enhancing their capacities in environmental governance and in getting benefits from Carbon Finance, through the Clean Development Mechanism (CDM) of the Kyoto Protocol. 6

7 Working together: LISCOP and CARBONSHED PROJECT Financing Planning LGUs, River Councils IBRD thru the Department of Finance Participatory Multi-stakeholder LLDA Technical Support (Carbonshed Team LEAP PhP 250 million ($50M) Characterization Priority setting Project Identification & Development LGU 2 VERs LGU 2.. LGU 3 LGU 3 24 microwatersheds Projects (5 million-10 million PhP each) in up to 24 microwatersheds CDM-ELIGIBLE CDMPROJECTS Other LISCOP projects Private Sector Projects Clean Development Mechanism (CDM) Article 12 of the Kyoto Protocol Assist developing countries to achieve sustainable development Assist developed countries to meet commitments through projects in developing countries Laguna Lake Development Authority 7

8 How Carbon Credits are Formed CO2 Emissions BaU CDM Time Laguna Lake Development Authority Methane Avoidance From an open dumpsite (Business as Usual) To a Materials Recovery Facility with Composting (CDM project) 8

9 Methane Recovery through wastewater treatment 1,200 kg/yr coconut area 7,900 kg/yr coconut area 19 households rice area 8,100 kg/yr 52 households 7 backyard piggeries 2 commercial piggeries 176 households 34 backyard piggeries 14 commercial piggeries 23 backyard piggeries 19 commercial piggeries Carbon Sequestration through reforestation of denuded areas in the lake s watershed 9

10 (1) FS and due diligence (2) PDD documents Methodological Approval (3) Approval by the Designated National Authority (DNA) Public Consultation (4) Validation by the Designated Operational Entity (DOE) (5) Registration by the CDM Executive Board (EB) (6) Implementation Steps in Developing a CDM Project CDM website: (7) Verification by the DOE (8) Issuance of VERs or CERs (Upon verification and approval of report by the EB) (9) Transaction of ERs SMALL-SCALE CDM PROJECTS IN LAGUNA DE BAY BUNDLE 1: Avoidance of Methane Production from Biomass Decay Through Composting-1 (CDM-SSC-PDD, Version 03 - in effect as of: 22 December 2006). ER Treshold: Not more than 60 kilo tonnes tco2-e BUNDLE 2: Methane Recovery in Wastewater Treatment-1 (CDM-SSC-PDD, Version 02) ER Treshold: Not more than 60 kilo tonnes tco2-e BUNDLE 3: Watershed Rehabilitation Project 1 (CDM-SSC-AR-PDD, Version 02) ER Treshold: Not more than 8 kilo tonnes tco2-e 10

11 CDM Sub-projects in the Laguna de Bay Watershed CDM subprojects and CERs 11

12 Required Legal Agreements 1. Memorandum of Agreement between the Project Participant and the LLDA for the Intent to Sell and Purchase Verified Emission Reductions Signing of the Memorandum of Agreement (cmoa) between the LLDA and Municipal Mayors as witnessed by Dr. John MortonMorton -World Bank (5th from left) and Cong. Baculio, Vice Chairman, Committee on Ecology, Philippine House of Representatives (7th from left). 12

13 2. Emission Reduction Purchase Agreement (ERPA): Conditions To Sell and Purchase Verified Emission Reductions between the LLDA and the World Bank. 30 June 2006 Laguna Lake Development Authority 3. sub-emission Reduction Purchase Agreement: ConditionsTo Sell and Purchase Verified Emission Reductions between the LLDA and the project participant Mayors of the town of Tanay and Pililla in the Province of Rizal 25 June

14 Capacity Building Activities Marketing of Carbonshed Project 14

15 Carbon Team s Workshop on the Operations Manual Seven Suites HotelHotel-Observatory, Antipolo City, February 7, 2006 Dr. John Morton, Task Team Leader from the World Bank discussing the Operations Manual The Carbon Finance Team Proponent Workshop Participants from fifteen (15) LGUs at Vivere Suites, Alabang, Muntinlupa City, February 99-10,

16 Training on CDM Project Monitoring 22 June 2007 Alumni Center, UP Diliman Campus OTHER IMPORTANT COMPONENTS OF THE CARBONSHED PROJECT 1. Greenhouse Gas Emission Inventory in the Laguna de Bay Watershed Develop a map showing the location of major sources of greenhouse gas emissions including agricultural, land use, industrial, and waste management sources as well as potential hazard areas, e.g. landslide/mudslide prone areas. Conduct baseline assessment of present, historical and scenarios for future greenhouse gas emissions from the above activities in each of the sub-watersheds of Laguna de Bay consistent with international practices such as those described by the IPCC. Incorporate data and analysis into LLDA s watershed modeling, GIS and Decision Support System (DSS). 16

17 CO2 emissions from AFOLU >70 ktons 50 to70 30 to to to to to to to -110 <-110 ktons CO2-e from WASTE Sector >180 ktons 160 to to to to to to to to 40 <20 ktons 17

18 OTHER IMPORTANT COMPONENTS OF THE CARBONSHED PROJECT 2. Development of a simplified CDM toolkit Baseline methodology spreadsheets Templates for PINs and PDDs Guidelines and step by step procedures Criteria and procedures for enhancing community benefits Monitoring protocols, including relevant forms and checklist that can be used by the various levels of monitors Procedures and resources for updating the toolkit in response to changing requirements under the Kyoto Protocol Continuing and Next Steps: Signing of a sub-erpa between the LGU and the individual project participants Application for approval of the Designated National Authority Validation by the Designated Operational Entity Registration of the bundled sub-projects by the CDMExecutive Board Training of Project Participants and LLDA staff on monitoring Carbon Emission Reduction Emission Reduction delivery and payment of corresponding revenue Laguna Lake Development Authority 18

19 BARRIERS AND CHALLENGES CDM Project Development Project financing Bureaucratic red tape High CDM transaction cost Stringent CDM rules Changing methodologies DNA requirements extensive documentation Uncertainties beyond 2012 BARRIERS AND CHALLENGES Politics 1. Divergence in priorities among local officials as influenced by political party affiliation 2. Uncertainty in tenure of assigned project staff (political appointees) Preparedness to develop a CDM project 1. Lack of manpower 2. Insufficient technical know-how 3. Slow-learning curve CDM rules 19

20 OPPORTUNITIES 1. Awareness of LGUs and communities on global warming and climate change 2. Call to Action to mitigate greenhouse gas emissions 3. Capacity building both for the LLDA, LGUs and communities Understanding of CDM rules Developing CDM projects with community participation PDD preparation Project implementation and monitoring Carbon transaction OPPORTUNITIES 4. Better environment in the Laguna de Bay Basin through CDM 5. Political value for LGUs, pogi points 6. Additional revenues to make the financial investment more attractive 7. Benefits of monitoring, better project implementation, efficiency 8. Empowerment of communities 20

21 LLDA Carbonshed Project Team Laguna Lake Development Authority Rizal Provincial Capitol Compound Pasig City Philippines Tel No address: Website: 21