Carbon Finance Opportunities in Water Supply and Sanitation. Water Week Feb. 28, 2007

Transcription

1 Carbon Finance Opportunities in Water Supply and Sanitation Water Week Feb. 28, 2007

2 Agenda How Carbon Finance Works World Bank Carbon Funds Opportunities in Water Supply Project Example Opportunities in Water Sanitation Project Example Submitting a Project Idea Note (PIN) Discussion

3 How Carbon Finance Works Developing country/economy in transition with no emissions cap Industrialized country with an emissions cap Domestic action Baseline emissions Emission Reductions (ERs) Project emissions ER $ $ Developing country/economy in transition benefits from technology and financial flows Purchase of ERs Purchase of allowances Emissions target Baseline Scenario Project Scenario

4 World Bank Carbon Funds Technology Technology $ $ Finance Finance Industrialized Governments and Companies Bank Managed Carbon Funds (Trust funds) Developing Countries/ Economies in Transition CO Equivalent 2 Emission Reductions CO Equivalent 2 Emission Reductions

5 How Carbon Finance Works (cont d) Carbon Finance provides an additional revenue stream in hard currency. It does not provide the funds to cover capital costs. It is a performance based payment after a project has been implemented. It can help leverage underlying financing for a project.

6 Water Supply Energy Efficiency / CO2 emission reductions Municipal and Agricultural systems Approved Methodology AM0020 Water pumping efficiency improvements - Seek to reduce CO2 emissions by explicitly reducing the amount of energy required to deliver a unit of water for end-use Improve energy efficiency in the overall water pumping, including reducing technical losses and leaks as well as the energy efficiency of the pumping scheme, which consume electricity from the electricity grid

7 Nigeria Water Pumping Efficiency Project Baseline Scenario Dilapidated and inefficient water pumps Leaks in the system, oversized pumps Revenue losses due to unaccounted for water Energy costs of pumping are significant Limited preventive maintenance / limited funds Project Activity Installation of new, more efficient pumps and pump components Properly-sizing of pumps and components (e.g. impellers) for their applications Optimization of existing infrastructure through better metering and monitoring measures Reduction in leaks and other unaccounted for water

8 Project Example: Nigeria Scheme/Loc ation Baseline Water Baseline Energy Pre Project Estimated Estimated Energy Estimated Delivery Consumption Efficiency Ratio Water Delivery Consumption Efficiency Ratio m 3 /year kwh/year kwh/m 3 m 3 /year kwh/year kwh/m 3 Kano State 61,685,000 81,424, ,000, ,900, Kaduna State 50,917,500 67,211, ,500, ,925, Ogun State 33,908,500 44,759, ,844,500 58,471, Lagos State 219,000, ,560, ,000, ,100, Cross River State 1,916,250 2,529, ,916,250 2,203, Total 231,427, ,483, ,260,750 1,083,599, Emission Reductions = (Estimated Water Delivery M 3 y (942,260,750 m3) * Pre-project efficiency ratio PPER (1.32 kwh/m3) * Emissions Factor EF y (.67 kgco2/kwh)) (Estimated Energy Consumption [1] kwh y (1,083,599,862 kwh) * Emissions Factor EF y (.67 kgco2/kwh)) / 1,000 (kilogram to ton conversion) ERs = 107,323 tco2e/year x $10 per ton of CO2 emission reductions = $1,073,230 per year

9 WasteWater Sanitation Treatment Options - Anaerobic: methane capture & combustion Digester tanks, Covered ponds Captured methane Flared, Energy use - Aerobic: methane avoidance Composting, Land application

10 Approved Methodologies Methodology Reference Project Activity Baseline Wastewater Treatment Projects AM0013 Anaerobic digester or aerobic treatment of sludge Open Lagoon with active Anaerobic Conditions Composting /Biodigester Projects AM0025 Composting Aerobic sludge treatment Organic Solid Waste / Sludge otherwise Disposed in Landfill / Open Lagoons Grid Connected Electricity Generation AMS-I.D Small-scale Power Generation not to exceed 15MW from Renewable Energy (e.g., LFG, sludge digestion) kw Generated times Emission Reduction of Displaced Fuel

11 WasteWater Sanitation Baseline Anaerobic treatment conditions Methane is released into the atmosphere Project Activity Capturing and flaring of methane (and electricity generation) from anaerobic treatment Aerobic treatment (de-watering and using sludge as soil conditioner) ie methane avoidance

12 Wastewater Treatment / Sludge Projects: CFU Portfolio Bolivia China Colombia

13 Project Examples Shanghai Sludge Treatment - New Methodology - Baseline Scenario: Undigested sludge(208 dry tpd) Disposal landfill - Project Activity: Sludge digestion: 31,200 m3/d, 65% methane Carbon emission reduction Total: 174,550 tco2e/yr Digestion: 136,900 tco2e/yr Drying: 37,650 tco2e/yr

14 Project Idea Note 6 page project overview document Template available at Type and size of project Location Amount of greenhouse gas (GHG) reduction Financial structuring Socio-economic or environmental effects/benefits

15 Thank you! Chuck Peterson Jason Steele