Port Vila Urban Development Project (Vanuatu) Biogas Capture & Utilisation from Anaerobic Digestion of Sewerage Sludge

Srikanth Subbarao Technical Support Facility, Carbon Market Programme Asian Development Bank

South Pacific - Background 14 Countries, 8 Territories, 30 million sq. km, 7500 islands, Only 500 inhabited, 10 million people have a varying but high dependence on fossil fuels, with petroleum accounting for an estimated 90% of commercial energy consumption rate of in country electrification ranges from between 10% and 100% but on average about 70% of people in the PICs still do not have access to electricity

South Pacific - CDM has shown slow progress in accessing carbon financing through the Clean Development Mechanism (CDM). Few Designated National Authorities (DNAs) have been established and only three registered CDM projects exist. Viable projects exist, but the limited awareness and low capacity of national governments and project developers has been a significant barrier to CDM project development in the Pacific.

Project Details Port Vila Urban Development Port Vila Urban Development Project PPTA financed by ADB, Ausaid & Government of Vanuatu Proposed investment project based on drainage and sanitation master plan 2011-2025- identified and prioritized urgent drainage and sanitation infrastructure and services for greater Port Vila Proposed CDM Project Biogas capture & utilisation from anaerobic digestion of domestic sludge

CDM Details On an average, it is estimated that 138,00 m3 of biogas will be generated annually estimated to generate 275 Mwh of electricity per year. It is estimated that the project will reduce on an average 4200 tonnes of CO2e per year. Additionality - First of its Kind in the host country; barrier analysis and/or investment analysis as appropriate; Guidelines for demonstrating additionality of Micro-scale project activities EB 60 (version 2)

CDM Details CDM Methodology AMS III.AO; Methane recovery through controlled anaerobic digestion/AMS III.H; Methane recovery in wastewater system in combination with AMS I.F; Renewable electricity generation for captive use and mini-grid and/or AMS I.D; Grid connected renewable electricity generation Project Status PPTA Extension Phase Preparation of the main project including technical & engineering design aspects

Challenges Low emission reduction due to small project size appropriate arrangements to cover the CDM transaction costs especially the CDM Project development (PDD, Monitoring etc), validation & verification costs given the estimated carbon revenues Capacity building and technical hand-holding on CDM requirements for the PP & Stakeholders

Merits First of its Kind Project in Vanuatu Positive impacts on local environment & hygiene In line with the Sustainable Development goals of Vanuatu Additional revenue through carbon credits Role model for CDM project developers in the host country and in the Pacific region

CDM in Pacific Barriers & Issues Low ER potential mainly due to lack of access to energy, small islands with dispersed population Limited potential for high emission reduction projects (with least cost option) but viable small RE projects with high sustainable development impacts can be developed complying with the current CDM requirements (baseline and additionality) involving significant data/information/evidences requirements seems to be challenging.

CDM in Pacific Barriers & Issues Lack of interest and initiatives for CDM projects given the perception of complexities involved and additional resource (technical/financial) requirement Very limited private players or investors with bulk of the development work being carried out with donor financing (ODA/Grants/limited lending) Very limited awareness and knowledge on CDM and associated issues within the DNAs and stakeholders

Recommendations
A new grouping under small-scale CDM for very small-off grid/isolated mini-grid projects in the range 100kW 1 MW Simplified baseline with minimal requirement of historical data, evidences, documentation CDM projects from Pacific Island countries can be considered as additional by de-fault. More emphasis on sustainable development impacts of CDM projects from Pacific Providing a premium for CERs from Pacific Island Countries due to very high sustainable development impacts

Thank You
Srikanth Subbarao CDM Expert for the Pacific (Consultant) Technical Support facility, Asian Development Bank Email: ssubbarao.consultant@adb.org