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Laguna De Bay Carbonshed Project Idea: A Demand-Driven, Umbrella Approach to Community Carbon Finance for Environmental Projects. Global Benefits. Key Issues in Laguna de Bay. Actions. Watershed rehabilitation. CO 2. Erosion and Siltation. sequestration. Pollution Reduction and
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Laguna De Bay Carbonshed Project Idea: A Demand-Driven, Umbrella Approach to Community Carbon Finance for Environmental Projects
Global Benefits Key Issues in Laguna de Bay Actions Watershed rehabilitation CO2 Erosion and Siltation sequestration Pollution Reduction and Treatment Pollution (organic, nutrients, solid waste) CH4 CO2 N2O emissions reductions
Focuses exclusively on small scale projects. Projects must benefit communities and their local environment. CDCF Carbonshed Project Small scale watershed environmental projects. Community participation in identification of environmental priorities and projects. Should reduce transaction costs by exploring the use of intermediaries and streamlined procedures. Reduced transaction costs through national intermediaries LLDA: technical intermediary. MDFO: financial intermediary.
LISCOP (component 1) Small scale watershed environmental projects Financing Planning MDFO Financial Intermediary LLDA Technical Intermediary River Councils Participatory Multi-stakeholder LGU-NG Cost sharing LEAP Characterization Priority setting Project Identification & Development 250 million PhP …….. Siniloan Tanay Pillila Binan CERs 24 microwatersheds 25-50 projects (5 million-10 million PhP each) in up to 24 microwatersheds CDM eligible projects (Carbonshed projects) Other projects
Project Types The total amount for the bundled projects will depend on choice of and demand for subprojects: Expected: 9,000 tons CO2/yr - 60,000 tons CO2/yr Maximum: 150,000 tons CO2/yr
Baseline Methodology and AdditionalityFor Small-scale Projects Methodology: Streamlined CDM procedures for small-scale projects. Exist for some proposed subprojects (biogas), may have to develop for others. Would be incorporated as part of LEAP process and included in PDD. Additionality: Follows small-scale additionality rules, including one of the following: • Investment barrier. • Technological barrier. • Barriers due to prevailing practice. • Other: institutional, limited information, managerial or organizational resources, financial resources, capacity to absorb new technologies. Would be incorporated as part of LEAP process and included in PDD.
Representative Subprojects:Pig Waste Biogas Project HOG FARM WASTE GENERATION IN LAGUNA DE BAY (kgs/year)
Organic Waste Loading From Majayjay Laguna de Bay Balanac River Majayjay Ri ver Initian 1,200 kg/yr Lucban river coconut area 7,900 kg/yr rice area 19 households 8,100 kg/yr coconut area 52 households Creek 7 backyard piggeries 2 commercial piggeries 176 households 34 backyard piggeries 14 commercial piggeries 23 backyard piggeries 19 commercial piggeries
Communal Pig Waste Biogas Digesters Project basics Cost 9.8 million PhP 20 LGU-run biogas reactors for backyard piggeries 2 LGU-run biogas reactors for commercial piggeries Baseline: Disposal of waste using current practices without collection of methane. Emissions reduction: Reduction of methane and N2O emissions from waste and replacement of current cooking fuel use. Small-scale additionality test: Prevailing practice is no treatment or treatment using lagoons. Biogas collection is very uncommon and not mandated by regulations. Other: Lack financial resources with complementary technical and information support.
Community Benefits • Reduced odors, improved sanitation. • Cost savings from fuel use. • 364.000 PhP/yr of revenues from ERs can be reinvested • by LGUs in environmental activities in community.
As the UMBRELLA CONCEPT is an INNOVATION for the CDCF, the decision on how this approach or alternative approaches would be undertaken will be discussed and agreed with the CDCF and the Philippine counterparts as part of the project preparation. The project will act as a pilot for LdB watershed and a demonstration for other watersheds within the Philippines and therefore catalyze more emissions reductions in the country.
Project Idea Summary • CDM-eligible investments in sustainable development at the community level. • Reduces transaction costs through umbrella approach. • Community ownership through demand driven, participatory approach. • Brings benefits of CERs to communities.