Opportunity of Co-benefits of Climate Change Mitigation Actions from Waste: Experience of Waste Concern in Bangladesh

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1 Opportunity of Co-benefits of Climate Change Mitigation Actions from Waste: Experience of Waste Concern in Bangladesh Iftekhar Enayetullah Co-founder & Director WASTE CONCERN Session 2: Opportunities for Linking the SWM Sector with International Climate Financing CONSULTATION WORKSHOP ON NAMA FOR WASTE MANAGEMENT SECTOR IN SRI LANKA FOR SWM SECTOR WITH INTERNATIONAL CLIMATE FINANCING web:

2 Presentation Outline I. Current Practice of SWM in Asia and the Pacific Region II. Problems From Present Practice III. IV. What is Waste to Resource Approach? How Waste to Resource Approach Reduces Greenhouse Gas (GHG) Emissions? V. What is Co-benefit? VI. VII. Examples of Potential Co-benefits of Waste to Resource Approach: Waste Concern s Approach in Bangladesh. Way Forward for Climate Financing using NAMA

3 Waste Generation Worldwide and in Developing Countries It is estimated that 5.2 million tons of solid waste are generated daily worldwide, of which 3.8 million tons are from developing countries. 5.2 million tons/ day Worldwide 3.8 million tons/ day Developing countries % organic Waste Generation Source: World Bank 2013, What a Waste

4 Global Perspective: Solid Waste Management Costs Versus Income LOW INCOME COUNTRY MIDDLE INCOME COUNTRY HIGH INCOME COUNTRY Average WASTE GENERATION 0.2 t/capita/y 0.3 t/capita/y 0.6 t/capita/y Average INCOME FROM GNP 370 $/capita/y 2,400 $/ capita/y 22,000 $/ capita/y Collection Cost $/t $/m $/t. Transfer Cost 3-8 $/t $/t $/t. Sanitary Landfill Cost 3-10 $/t $/t $/t. TOTAL COST WITHOUT TRANSFER $/m.t $/t $/t. TOTAL COST WITH TRANSFER $/t $/t $/t. Total Cost per Capita 3-10 $/capita/y $/capita/y $/capita/y COST AS % OF INCOME % % % Source: World Bank ( 2012) What a waste: A Global Review of Solid Waste Management

5 Present Situation in Developing Countries Source of Waste Mixed Waste Waste Bins Demountable Containers Transfer Stations Landfill

6 PROBLEMS FROM PRESENT PRACTICE VERMINS Spreading more than 40 Diseases METHANE GAS Bad Odor & Green House gas LEACHATE Polluting Ground & Surface Water Current approach: waste management not resource recovery

7 What is Waste to Resource Approach? Since 2007, the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in partnership with Waste Concern, has been promoting decentralized and Integrated Resource Recovery Centers (IRRCs) in secondary cities and small towns in Asia-Pacific with the objective to recover value from waste and provide livelihood opportunities to the urban poor. IRRC is a facility where significant portion (80-90%) of waste can be composted/recycled and processed in a cost effective way near the source of generation in a decentralized manner. IRRC is based on 3 R Principle. 100% Collected with user fee House-to-house waste collection method 86% RECYCLED 80% Compost Refuse Derived Fuel Agriculture Energy Waste IRRC 6-10% Recyclables 10-14% Non-compostable Local market Landfilled GHG Reduced CER

8 Organic Waste Landfill Methane (CH4) Emission Baseline situation (organic waste dumped in landfill sites becomes anaerobic and generates methane) Organic Waste Baseline Situation vs. IRRC model Input Technology Produce No Methane Emission Composting (Aerobic Process) Compost (Diverted organic waste from landfill and replacing use of chemical fertilizer ) Climate Change Benefits Generates Carbon Credits by avoiding methane from Landfill and reduce CO2 to produce chemical fertilizer Organic Waste Organic Waste (noncompostables) Human Excreta Organic Waste Biogas Plant (Anaerobic Digestion) Refused Derived Fuel (RDF) Co-composting (Aerobic Process) Biogas to Electricity (replacing fossil fuel based electricity) Fuel in Pellet form (replacing diesel or coal used in boilers or brick kilns) Compost (Diverted organic waste from landfill and replacing use of chemical fertilizer) Avoids methane from landfill and reduces CO2 emission by replacing grid power Avoids methane from landfill and reduces CO2 emission by replacing grid power Generates Carbon Credits by avoiding methane from Landfill and reduce CO2 to produce chemical fertilizer Used Cooking Oil Bio diesel Plant Bio diesel (replacing diesel as fossil fuel) IRRC model converts waste into resource and reducing green house gas methane (CH4) Replace use of fossil fuel

9 CDM Project in Waste Sector Through Composting Baseline Situation Methane Emission (Green House Gas) CDM project No Methane Emission At present only 50-70% of the generated solid waste in the urban areas is collected by the municipalities and disposed in crude dumping manner in low-lying areas without any cover and gas collection system. Waste City Authorities Collecting transport The globally first CDM composting project is already operational in Bangladesh since 2008 and CERs has been issued for this project. Existing Practice: land filling of waste Composting Plant

10 January February March April May June July August September October November December Yearly Avg Source:

11 ECONOMIC OPPORTURNITIES FROM CLIMATE CHANGE MITIGATION PROJECTS CLIMATE CHANGE MITIGATION PROJECTS Waste Sector GHG EMISSION REDUCTION CO-BENEFITS YES YES Low price of Carbon Public/Private Benefit

12 What is Co-benefit The term co-benefits is defined as all the potential developmental benefits of climate change mitigation actions in areas other than GHG mitigation.

13 Globally First CDM Based Composting Project Located at Bulta, Greater Dhaka initiated by Waste Concern Waste related projects that reduce GHG emission can have economic, social, environmental, and health benefits apart from climate change benefits. In this presentation, an attempt has been made to quantify and monetize the co-benefits (apart from GHG emission reduction) associated with a waste sector composting project described in the following section. Projects that reduce GHG emission can have economic, social, environmental, and health benefits apart from climate change benefits ( emission reduction benefits).

14 Co-benefits of recycling 1 (one) ton of organic waste Creation of New Jobs= 2 nos. Create 2 new jobs for the urban poor, including waste pickers SL Problem Co-benefits Co-Benefit Indicators 1 Lack of job opportunities for poor prevailing in the towns and cities. Can create safe job opportunity for waste pickers engaged in recycling of mixed waste without any protection. Number of safe jobs created for low income people and waste pickers. Increase in income of workers by having safe jobs. Type of Benefit Both public and private Baseline Data Average income of waste picker in is Taka 2600 per month out of which 15% are medical expenses per month. Average disposable income is Taka 2210 per month. Condition After Implementation of the Project 2 jobs per ton. Average income of waste pickers working in the plant is Taka 7000 per month. Net Co-benefit 2 jobs per ton. Average increase in income of waste pickers by working in the compost plant is Taka 4400 per month.

15 Co-benefits of recycling 1 (one) ton of organic waste Produce tons of good quality compost SL Problem Co-benefits Co-Benefit Indicators 2 Unmanaged organic waste full of nutrients are remaining unutilized and creating pollution. If waste is segregated properly and appropriat e technology is used, compost can be produced and used in the agriculture. Amount of compost produced. Type of Benefit Both public and private Baseline Data No compost plant was operational in city using the market waste. Condition After Implementation of the Project kg per ton of organic waste treated. Net Co-benefit kg per ton of organic waste treated.

16 Co-benefits of recycling 1 (one) ton of organic waste Reduce 0.5 tons of CO2eq GHG emissions by recycling 1 (one) ton of organic waste SL Problem Co-benefits Co-Benefit Indicators 3. Unmanaged organic waste generates methane if kept anaerobic. Aerobic composting technique can produce good quality compost and at same time avoid GHG emissions. Amount of GHG reduced. Type of Benefit Baseline Data Condition After Implementation of the Project Public tons per ton of organic waste composted Net Co-benefit 0.5 tons per ton of organic waste composted. GHG Mitigation through Composting of Organic

17 Co-benefits of recycling 1 (one) ton of organic waste Save 1.1 cubic meter of landfill area SL Problem Co-benefits Co-Benefit Indicators 4. Land for landfill sites are becoming scarce in most of the developing countries due to increase in land price and environmental regulations. Composting can save landfill areas as well as land filling cost for the local governments. Amount of waste diverted. Cost saved for the municipality from disposal of waste. Type of Benefit Baseline Data Public In the baseline scenario, no waste is diverted towards composting. city spends Taka 600/ton for transportation of waste and Taka 300/ton for landfilling of waste. Condition After Implementation of the Project 1.1 cubic meter of landfill area per ton of organic waste composted. USD 11.68/ton (transportation and landfilling cost) Net Co-benefit 1.1 cubic meter of landfill area per ton of organic waste composted. USD 11.68/ton (transportation and landfilling cost).

18 Co-benefits of recycling 1 (one) ton of organic waste The use of compost can increase crop production between 25-30% and reduce use of chemical fertilizer by 35-40%. SL Problem Co-benefits Co-Benefit Indicators 5. Due to heavy use of chemical fertilizer, lack of crop rotation, high cropping intensity, drought, and other reasons, the soil is losing its fertility thus causing threat to food security. Use of compost can lower the use of chemical fertilizer at the same increase crop yield due to improved Increase in crop yield per hectare. Amount of chemical fertilizer avoided by use of compost. Type of Benefit Public and Private Baseline Data Yield: 4.16 tons/ha (BIRRI Rice 46) kg/ha) + no compost Taka 19,676 /ha (excluding fertilizer application and labor cost) Condition After Implementation of the Project Yield: 4.58 tons/ha (BIRRI Rice 46) 75% kg/ha) + 1 ton/ha compost Taka 18,161/ha (excluding fertilizer application and labor cost) Net Co-benefit 0.42 tons/ha (BIRRI Rice 46) which has a value of Taka % savings in use of chemical fertilizer resulting in savings of Taka 1515/ha.

19 Potential Co-benefits by Reducing 1 (One) Ton of CO2e 2 Tons Organic Waste if Processed into Compost 1 ton CO2eq Reduced Type of Benefit Public and Private Public Private Sector of Benefit Social Sub sector: Employment generation Economic Sub-sector: urban/municipa l Economic Sub sector: agriculture Co-Benefits/ GHG emission reduction Creation of additional income for four waste pickers by working in the compost plan Consideration: 4 jobs created to process 2 tons of organic waste to reduce 1 ton CO2eq Cost saved for the municipality from disposal of waste Consideration:1.1 cubic meter of landfill area per ton of organic waste composted. US$ saved by avoiding 2 tons of organic waste to be land filled. Presently USD 11.68/ton spent for (transportation and land filling cost) 25% saving in chemical fertilizer usage by use of compost Consideration: 25% savings in use of chemical fertilizer resulting in savings of Taka 1515/ha. Value of Cobenefits/ GHG emission reduction US $ 7.53 US $ US $ 9.71 Public Private and Public Economic Sub-sector: Agriculture Environmental and Economical 25% less subsidy on chemical fertilizer Consideration: At present Government of Bangladesh (GOB) is giving BDT /Ton on chemical fertilizer. Increase in crop yield of 0.21 ton per of rice per half ha Consideration: from 2 tons of waste 0.5 ton of compost can be produced US $ 4.13 US $ Total value of co-benefits per ton of GHG emission reduction through composting US $ 93.82

20 BENEFIT OF A 100 TONS/DAY CAPACITY COMPOST PLANT 100 Tons/day Capacity Composting Project (with 10 (ten) Years Life) Income from Carbon Finance CERs Income from Climate Finance CO-BENEFITS INCOME: US$ 9125/ year 50 tons*365 day*us$ 0.5 Price of 1 (ton) CO2e Reduction: Euro 0.3 / US$ 0.5 INCOME: US$ 1.71 million/ year 50 tons*365 day*us$ 93.8 Co-benefit from 1 (ton) CO2e Reduction: US$ 93.5

21 WHAT IS CLIMATE FINANCE? WHAT IS CLIMATE FINANCE? Climate Finance is used to describe Financial Flows for Climate Change Mitigation/Adaptation Project CLIMATE FINANCE National Financing Institutions/ Agencies/ Development Banks etc. Transnational International Measuring, Reporting & Verifying (MRV)

22 Mitigation-Adaptation Loop Mitigation Co-benefits

23 Way Forward Clear cut policy to create conducive environment for investment. Inter-ministerial co-ordination essential for easy implementation of projects with priority basis. Incentives Required: tipping fees/ free delivery of waste to recycling facility, feed-in tariff, low interest rate/ soft loan, tax holiday, land etc. Capacity building training programs: for monitoring of the projects especially MRVs Standardization of technology is important by the Govt

24 THANK YOU

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