Joint Crediting in Palau to Improve Returns on Investment in Waste-to-Energy Systems Island Energy Transitions: Pathways for Accelerated Uptake of Renewables, Martinique, June 22-24, 2015 Shiko Hayashi Programme Manager, Sustainable Cities Group Basic Concept of the JCM Facilitating diffusion of leading low carbon technologies, products, systems, services, and infrastructure as well as implementation of mitigation actions, and contributing to sustainable development of developing countries. Appropriately evaluating contributions from Japan to GHG emission reductions or removals in a quantitative manner, by applying measurement, reporting and verification (MRV) methodologies, and use them to achieve Japan’s emission reduction target. Contributing to the ultimate objective of the UNFCCC by facilitating global actions for GHG emission reductions or removals, complementing the CDM. JAPAN Leading low carbon technologies, etc, and implementation of mitigation actions MRV Methodologies will be developed by the Joint Committee Used to achieve Japan’s emission reduction target Credits Host Country JCM Projects MRV GHG emission reductions/ removals 2 JCM Partner Countries Japan has held consultations for the JCM with developing countries since 2011 and has established the JCM with Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Viet Nam, Lao PDR, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia and Chile. Mongolia Jan. 8, 2013 (Ulaanbaatar) Lao PDR Aug. 7, 2013 (Vientiane) Saudi Arabia May 13, 2015 Bangladesh Mar. 19, 2013 (Dhaka) Indonesia Aug. 26, 2013 (Jakarta) Chile May 26, 2015 (Santiago) Ethiopia May 27, 2013 (Addis Ababa) Kenya Jun. 12,2013 (Nairobi) Maldives Jun. 29, 2013 (Okinawa) Viet Nam Jul. 2, 2013 (Hanoi) Costa Rica Dec. 9, 2013 (Tokyo) Palau Jan. 13, 2014 (Ngerulmud) Cambodia Apr. 11, 2014 (Phnom Penh) Mexico Jul. 25, 2014 (Mexico City) Three (3) JCM projects have been registered between Indonesia and Japan and one (1) JCM project has been registered between Palau and Japan. 3 Scheme of the JCM Host Country Japan Joint Committee Government • Issuance of credits •Notifies (Secretariat) registration of projects • Development/revision of the rules, guidelines and methodologies •Reports • Registration of projects issuance of • Discusses the credits implementation of JCM •Notifies registration of projects Government •Reports issuance of credits • Issuance of credits Conduct policy consultations •Request registration •Request of projects issuance of credits •Submit PDD •Submit PDD /monitoring /monitoring report Project Participants Third party entities report Project Participants •Request issuance of credits •Request registration of projects • Implementation & • Validation of monitoring of projects •Inform projects • Verification of results of validation amount of GHG /verification emission reductions or removals •Inform results of validation /verification • Implementation & monitoring of projects 4 Financing Programme for JCM Model Projects by MOE The draft budget for FY 2015 2.4 billion JPY (approx. USD24 million) per year by FY2017 (total 7.2 billion JPY) Finance part of an investment cost (up to the half) ※Budget will be fixed after approval by the Parliament Government of Japan Conduct MRV and expected to deliver at least half of JCM credits issued International consortiums (which include Japanese entities) Scope of the financing: facilities, equipment, vehicles, etc. which reduce CO2 from fossil fuel combustion as well as construction cost for installing those facilities, etc. Eligible Projects : starting installation after the adoption of the financing and finishing installation within three years. 5 Capacity Building Programmes & Feasibility Studies by MOE Capacity Building Programmes Activities Region Asia, Africa, Latin America, and Small Island countries Scope Consultations, workshops, seminars, training courses and study tours, etc. Target Facilitating understanding on the JCM rules and guidelines, enhancing capacities for implementing MRV Government officials, private sectors, candidate for validation & verification entities, local institutes and NGOs Feasibility Studies Objective Elaborating investment plan on JCM projects, developing MRV methodologies and investigating feasibility on potential JCM projects, Type of studies JCM Project Planning Study (PS) JCM Feasibility Study (FS) Large Scale JCM Feasibility Study To develop a JCM Project in the next fiscal year To survey feasibility of potential JCM projects To survey feasibility of potential large scale JCM projects including city level cooperation Reports Available at GEC (Global Environment Centre Foundation ) website <URL: http://gec.jp > Outreach New Mechanisms Information Platform website provides the latest information on the JCM <URL: http://www.mmechanisms.org/e/index.html> 6 JCM Financing programs in 2013 and 2014 by MOEJ Mongolia: ○Upgrading and Installation of Centralized Control System of High-Efficiency Heat Only Boiler (HOB) Viet Nam: ◆Anaerobic Digestion of Organic Waste for Biogas Utilization at Market ◆Eco-driving with the Use of Digital Tachographs ◆ Introduction of amorphous high efficiency transformers in power distribution systems Bangladesh: ◆Energy Saving for Air Conditioning & Facility Cooling by High Efficiency Centrifugal Chiller (Suburbs of Dhaka) Palau: ○Small-Scale Solar Solar Power Power Plant Plant for for Commercial Commercial Facilities Facilities in in Island Island ○Small-Scale States Project Project States ◆Small-Scale Solar Solar Power Power Plants Plants for for Commercial Commercial Facilities Facilities Project Project IIII ◆Small-Scale ◆Solar PV System for Schools Project ◆Solar PV System for Schools Project Indonesia: ○Energy Saving for Air-Conditioning and Process Cooling at Kenya: Textile Factory (in Batang city) ◆Solar Diesel Savings at Convenience Stores ○Energy Abatement ○Energy Efficient Refrigerants to Cold Chain Industry Projects ○Energy Saving by Double Bundle-Type Heat Pump at Beverage Plant ○Energy Saving for Air-Conditioning and Process Cooling at Maldives: Textile Factory ◆Solar Power on Rooftop of School ◆Power Generation by Waste Heat Recovery in Cement Industry Building Project ◆Solar Power Hybrid System Installation to Existing Base ■Smart Micro-Grid system for POISED Transceiver Stations in Off-grid Area Project in Addu Atoll ◆Energy Saving through Introduction of Regenerative Burners to the Aluminum Holding Furnace of the Automotive Components Malaysia: Manufacturer ◆PV power generation and relevant ◆Energy Saving for Textile Factory Facility Cooling by High monitoring system for the office building Efficiency Centrifugal Chiller * Renewable energy related projects are highlighted in yellow ◆Introduction of high efficient Old Corrugated Cartons Process at Paper Factory ○Model project in FY 2013 (3 countries, 7 projects) ◆Reducing GHG emission at textile factories by upgrading to air◆Model project in FY 2014 (7 countries, 15 projects) saving loom ■ADB project in FY 2014(1 country, 1 project) 7 Comprehensive Resource Circulation System Plan for Sustainable Future in Republic of Palau AMITA Institute for Sustainable Economies (AISE) ©AMITA Institute for Sustainable Economies Co.,Ltd. Republic of Palau Land Area : 488k㎡ Population : 20,000 Republic of Palau Major Issues of Palau - Background of the Proposal Waste problem Energy security Food security Environmental conservation Tourism promotion ©AMITA Institute for Sustainable Economies Co.,Ltd. Composition and Recycling Potential of Solid Waste Total amount of collected waste to M-dock landfill site (Estimated from the result of waste weight measurement survey at M-dock landfill) 16t/day Food waste Plastic, Paper, Fiber 3.3t/day 7.0t/day Potential capacity of disposal Total 10.3t (Estimated from waste composition survey) + Condensed sewage sludge Recycled Solid Fuel System 3t Biogas System Totally 70% of waste could be recycled though biogas and solid fuel project. Biogas Related Technologies OUTPUT Biogas → Electricity Digestion → Fertilizer INPUT Blending organic waste with high moisture content Swage sludge Food waste Power generator Biogas plant Animal manure Biogas Waste Grass Fertilizer Waste separation Agriculture Methane fermentation technology Food Energy Crop ©AMITA Institute for Sustainable Economies Co.,Ltd. Recycled Solid Fuel Related Technologies (1) INPUT Waste with low moisture content Plastic Characteristics of the Fuel 30-70% (PVC is not acceptable) Paper Yard waste wood Textile Stable calorie Stable combustion Minimal harmful emission 70-30% Compact Easy to handle High storability OUTPUT Shredder Pelletizer Solid Fuel Compact plant Pellet type fuel Boiler Dedicated boiler Absorption chiller Use of hot water Alternative to fossil fuel ©AMITA Institute for Sustainable Economies Co.,Ltd. Proposed Business Scheme Development of legal system JCM Agreement * For Biogas business National Gov. PPUC Investment Long-term Agreement* (Sludge, Electricity) Japanese Gov. Long-term Agreement Max. 50% Subsidy for Initial Cost Investment Joint company State Gov. Entrustment of Operation * The proposed business scheme is subject to further consideration and discussion with relevant stakeholders. Operation & Maintenance MRV monitoring (grow energy plant) Recycled solid fuel user Cooperating to MRV monitoring JCM Application Investment Technical Support Project management Support for MRV monitoring and reporting Accounting and delivering credit Forming international consortium ©AMITA Institute for Sustainable Economies Co.,Ltd. Estimation of Benefits for Palau Reduction of waste Potential of 70% reduction Prolonging the landfill life Reducing the impact for water environment Recycling all of the swage sludge 100% of condensed sludge Reducing the environmental risk Saving landfill cost $120,000/year Energy generation Equivalent to 3.8% of total electricity consumption in Palau Raising national energy security ©AMITA Institute for Sustainable Economies Co.,Ltd. Thank you for your kind attention! 16 16