Colombia Waste NAMA. Strengthening the Solid Waste Sector while Reducing Emissions

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Colombia Waste NAMA Strengthening the Solid Waste Sector while Reducing Emissions Diana M. Rodriguez Climate Change Division Ministry of Environment and Sustainable Development, Colombia Regional Workshop on Nationally Appropriate Mitigation Actions in Asia and the Pacific: Scaling-up climate change mitigation efforts and prospects for NAMAs in the waste sector 18 and 19 March 2014 1

Colombia - Population: 46,000,000 inhabitants - Total area: 1,141,748 Km 2 - Capital city: Bogota (population:7,600,000 inhabitants) - Colombia s Waste generation: 24,600 tons/day 2

Waste in Colombia Colombian average waste composition Large proportion of organics in the waste stream. Strong institutions at national government that regulate technical aspects, tariff structures and service standards for municipal solid waste: 1% 3% 2% 5% 4% 14% 5% 66% Organics Paper and Cardboard Plastics Glass Rubber Textiles Hazardous Others - Ministry of Housing, City and Territories - Ministry of Environment and Sustainable Development - Water and Sanitation Regulatory Commission Private sector: - involvement in collection and disposal - good and profitable sector 3

Evolution of waste disposal in Colombia In 2005, regulation was established to ban the disposal of waste in open dumps. 100% 50% 0% 93% 93% 93% 94% 94% 81% 19% 7% 7% 7% 6% 6% 2006 2008 2009 2010 2011 2012 Ton/día Tons disposed- - Sitios Adecuados adequate disposal Ton/día Tons disposed- - Sitios No Adecuados inadequate disposal Nowadays 95% of the national disposal of waste is carried out in technically managed landfills sites. Open dumps have been virtually eliminated. 4

Challenges faced by current sector Lack of focus on economic value of waste has left lots of informal workers with suppressed wages and unsustainable livelihoods Tariff rates are disincentive to alternative treatment of waste Growth in waste streams putting pressure on existing landfills and creating environmental problems like leachate Landfills account for 5% of national GHG emissions and are projected to grow rapidly 5

Colombian Solid Waste NAMA Vision Solid Waste NAMA $ Economic Growth Social Benefits Reduced Emissions Benefits Create sustainable livelihoods for vulnerable informal sector Increase economic activity in sector by encouraging new technologies and new management processes Reduce further environmental degradation from overflowing landfills Increases landfill life by 100% Reduce GHG emissions from landfills by diverting future waste streams away from them 6

Colombian NAMA Development Process Cooperation funding from Environment Canada. Launch (March 2012): Organized sector-wide workshop March 2012 & formed Steering Committee with national government entities to guide NAMA development process. Phase 1: Scoping Study (April 2012 September 2012) CCAP ranked various technologies. economic feasibility and abatement potential. Identification of those viable in Colombian context. Barriers were identified. Phase 2: Comprehensive NAMA design approach (October 2012 March 2013) CCAP and consultants performed 6 studies to provide in-depth analytical foundation for NAMA design.

New waste treatment technologies can create economic growth Recyclables Compost Refuse-Derived Fuel (RDF) To be sold and remade into new products To be used public parks or for land reclamation To be sold under long term contract to cement kilns and other industry to replace coal/fossil fuels 8

Colombian Solid Waste NAMA Components Regulatory & Policy Changes Change in Tariffs New standards for alternative technologies Better Management Processes Source separation, selective routes Prove Modern Technologies in Colombia Mechanical-Biological Treatment (MBT) plants Materials Recovery Facilities (MRF) Formalization of Informal Waste pickers Involve Private Sector Create incentives, PPP schemes Appropriate Financial Mechanism Creation of NAMA equity fund due to equity gap Awareness and Education 9

Waste NAMA will result in waste sector carbon neutrality Sanitary Landfill Waste Treatment Technology 50% of waste diversion Carbon Neutral Sector Landfills emit 8,800,000 tco2e* annually *All amounts of waste and CO2 are an average of the considered 20 year period 3,900,000 tco2e*reduction from landfill diversion 5,900,000 tco2e* reduction due to increased recycling, compost, and waste-to-energy (WTE) 10

The NAMA could catalyze projects in multiple cities in Colombia Phase I & II (2013 2016) Phase III (2016 onwards) 3-4 pilot projects are carried out Cali (2,319,560) will be the 1st pilot in Colombia Barranquilla(1,207,305) and Medellín (2,416,685) could follow A series of projects could follow 19 Cement plants operate in Colombia 11

After the NAMA (2014-2034) 2013 2014-2034 Total waste collected in Colombia: Informal Recycling 4.5% Formal Recycling 4.5% Composting 1% RDF production 0% Informal Recycling 2% of total Formal Recycling 8% of total Total Sector Emissions: -800,000* tco2 14,000,000* average tons/ year Composting : 30% of total Sector reduction of over 100% Sent to Landfill: 90% RDF production: 10% of total Sent to Landfill: 50% of total *All amounts of waste and CO2 are an average of the considered 20 year period 12

Barriers faced and solutions within NAMA Regulatory Financial Social Institutional capacity Cultural Barrier New/alternative technologies are not eligible for competitive tariffs Private sector reluctant to invest equity in new business models Lack for formal channels to share value with informal workers Lack of capacity in government to regulate and monitor implementation of alternative technologies and processes Lack of awareness in citizens about benefits of recycling, source separation etc. Tariff reform Solution within NAMA NAMA Equity Fund Formalization process Capacity building in national and sub-national governments National and city-level awareness and education programs 13

Colombia to undertake ambitious regulatory reform 1. Change regulations to recognize alternative processes and technologies as legitimate municipal solid waste management options 2. Recognize alternative processes and technologies as eligible for tariffs similar to landfill disposal 3. Fiscal and financial incentives to encourage recycling programs 4. Remove unfairly restrictive barriers to incineration of solid waste in cement kilns 5. Create other progressive regulations like Extended Producer Responsibility (EPR) 14

Colombia s request from climate finance donors for Waste NAMA 1. Contribution to NAMA equity fund (at least 50% of $40 Mn) 2. Capacity-building Support ($2.5 Mn) 3. Project Pipeline Development Support($ 2.5 Mn) 15

In conclusion, the Colombian Solid Waste NAMA is: Transformational as it propels the solid waste sector into the next generation of technologies and processes thereby reducing GHG emissions from the sector significantly. Catalytic as 1 $ of climate finance can mobilize up to 10$ from Colombian public and private sources through innovative financial structuring. Comprehensive as it meets regulatory, economic, social and environmental objectives. Integrated and consistent with Colombia s sustainable development plans and will receive high-level support from relevant institutions and contributions thru public sources. Replicable throughout Colombia 16

Thank you Diana M. Rodriguez Climate Change Division Ministry of Environment and Sustainable Development, Colombia dmrodriguez@minambiente.gov.co 17