Life cycle inventory of the commercial production of compost from oil palm biomass: a case study

This paper compared the life cycle inventory (LCI) obtained from three commercial oil palm biomass composting projects in Malaysia which use the open windrow composting system. The LCI was obtained and calculated based on the functional unit of 1 t of compost produced. The input of the inventory are the feed materials such as empty fruit bunches (EFB) and palm oil mill effluent (POME); and utilities which include electricity generated at palm oil mill and diesel used. Composting 2.0–2.5 t of EFB and 5.0–7.5 t of POME required diesel from 218.7 to 270.2 MJ and electricity from 0 to 6.8 MJ. It is estimated that the composting emitted from 0.01 to 0.02 t CO_2eq/t_compost mainly from diesel used to operate machineries. Composting saved 65 % of time required for a complete degradation of POME when compared to ponding system, and 89 % of time required for a complete degradation of EFB compared to mulching. In terms of land required, it required 36 % less land as compared to ponding for POME and 99 % less land as compared to mulching for EFB. Based on the case study, diesel was found to be the main contributor to the environmental impact. There is a potential of upgrading the process to be more economical and environmental friendly. Using electricity as the source of energy has a lower footprint for the composting process. Instead of using raw POME, studies had reported that using treated POME either from anaerobic ponding or digested tank can accelerate the composting process.     

Review on industrial wastewater energy sources and carbon emission reduction: towards a clean production

This review provides an innovative approach of treating palm oil mill effluent (POME) from open pond and closed anaerobic sludge reactor for generation of green energy in the form of biogas containing methane. Improper techniques for the treatment and management of POME produce hazards to people and contribute to global warming. In all over the world, the total crude oil palm production in the countries like Malaysia, Indonesia, Africa, Latin America, Asian countries, Solomons and other were around 51, 31, 7, 6, 3, 2 and 1% compared with soya 41.8% and coconut 3.48%, respectively. In the year 2014–15, Malaysia generated at least 87.8 million tonnes of palm effluent per year. Various studies reveal that about 80% of palm effluent is disposed off partially treated in open dumps. The generated certified emission reductions (CERs) estimated and favoured the treatment of POME in anaerobic reactor by replacing open lagoon of aerobic system for cleaner production. The clean development mechanism (CDM) encourages the utilisation of upflow anaerobic sludge blanket reactors for POME treatment and methane capture to earn CER credits as a source of revenue.     

The financial additionality and viability of CDM projects allowing for uncertainty

Financial additionality and viability for Clean Development Mechanism (CDM) projects is commonly demonstrated through deterministic internal rate of return (IRR) benchmark analysis, supplemented with a sensitivity analysis. This method is vulnerable to assumptions on cash flows (including that from carbon credits) and is unable to differentiate grades of separation from the benchmark. This paper examines the financial additionality test and viability in the presence of cash flow uncertainty, where IRR becomes a random variable. A case example project involving wind power is exampled. It is seen that the boundaries between acceptance and rejection as a CDM project based on financial additionality and viability tests become blurred, leading to possible alternative conclusions. Comment is given on false positives and false negatives, in terms of acceptance and rejection of projects.     

Enhancing viability of biofuel-based decentralized power projects for rural electrification in India

Decentralized power generation, using locally available biofuels from non-edible oilseeds, is an option for rural electrification in many developing countries. However, due to prevailing high price of non-edible oilseeds, such as Jatropha curcas, the cost of electricity generation is very high. This paper provides detailed financial analysis of straight vegetable oil (SVO)-based decentralized power project and proposes an innovative model for enhancing their financial viability. While for implementing agency operational cost recovery is the key for viability, affordable tariff is crucial for end-users. The paper attempts to estimate minimum desired price of electricity from the stakeholders' (producer and users) perspective using data gathered from selected operational SVO-based power generation projects in India. Analysis carried out in this paper indicates that operating the decentralized power plant at higher capacity utilization factor, by introduction of productive load, and differentiated tariffs for commercial and domestic consumers may not alone be sufficient to achieve the financial viability. The paper proposes an innovative integrated model of using biogas, obtained from the by-product de-oiled cake of non-edible oilseeds, as a feedstock for power generation, instead of using the SVO in engines. This reduces the fuel cost of power generation, thereby helping to bring down the tariff within the paying capacity of rural consumers. The main produce, viz. extracted non-edible oil, which was otherwise used as fuel for generating power, can be sold in local market for earning revenue, thereby enhancing the project’s economic viability. This paper sets forth the proposed integrated model as a viable biofuel-based decentralized power project for sustainable rural development in areas with adequate availability of oilseeds.     

低碳沼气工程建设的生态经济效益核算研究——以广西恭城瑶族自治县为例

在全球气候变暖和快速城市化的背景下,农村地区是能源集约消耗的薄弱区域,其经济、社会、生态的可持续发展一直受到制约。沼气工程作为一种清洁用能方式,在优化用能结构、减少环境污染、节约自然资源、增加农民收入和促进农村经济转型等方面具有较大优势。本文选择广西恭城瑶族自治县这一沼气工程建设全国示范县为案例,针对户用8m3沼气池,对施工建设、运营维护和消费利用全生命周期过程中的碳足迹、减排效益、经济收益和生态价值方面进行核算和评价。结果表明在沼气池的建设与正常使用年限内,该县农户通过替代燃煤、柴薪和秸秆等共可减排CO2约1.24×106t。从户用沼气池建设及生产过程的投入产出价值的来看,仅通过节约炊事燃料和沼液沼渣的回收利用就能为每户节约19 877元,为全县带来1.26亿余元的总收益。因此,沼气工程在该地区的建设普及是发展农村低碳经济、走富农之路的有效措施,可为广大西部地区新农村建设提供借鉴。     

OPTIONS FOR ENVIRONMENTAL SUSTAINABILITY OF THE CRUDE PALM OIL INDUSTRY IN THAILAND THROUGH ENHANCEMENT OF INDUSTRIAL ECOSYSTEMS

The crude palm oil industry plays an important role in the economic development of Thailand and in enhancing the economic welfare of the population. Despite obvious benefits of this industrial development, it also significantly contributes to environmental degradation, both at the input and the output sides of its activities. On the input side, crude palm oil mills use large quantities of water and energy in the production process. On the output side, manufacturing processes generate large quantities of wastewater, solid waste/by-products and air pollution. Current industrial wastes and recoverable materials are empty fruit bunches, fibers, shells and ash. It is estimated that in 2003, a total of 2.1 million ton of solid wastes/by-products and 2.5 million m³ of wastewater were generated. The concept of the industrial ecosystem points at the potential of industrial waste recycling resembling food chains, food webs and nutrient cycles of nature. Following the notion of industrial ecology crude palm oil mills can develop a number of waste recycling and reuse systems. This paper analyzes the nature of these industrial ecosystems, divided in in-plant ecosystems (clean technology options) and external waste exchange between crude palm oil industries and other economic activities in Thailand.     

可持续发展目标下的清洁发展机制项目评价

清洁发展机制（CDM）是《京都议定书》规定的发达国家和发展中国家之间项目级的合作机制，CDM项目的目标之一是促进发展中国家的可持续发展。在京都议定书最终生效的背景下．CDM项目的开发与能力建设成为热点。本文基于多目标决革理论。讨论CDM促进可持续发展与否的评价方法。以国际最新的研究为基础。作者构建了CDM项目可持续评价的指标化体系。建立了评价过程。并将其应用刭具体的案例——内蒙古辉腾锡勒风电CDM项目的评价中。研究可以为中国的CDM潜在项目的选择、比较和批准等实践活动提供定量的方法和思路。这对于中国成为CDM国际合作中的重要参与者以及促进中国的可持续发展都具有重要的意义。     

China''''s CDM Policies and Their Development Implications:Major Concerns for CDM Implementation

Most CDM (Clean Development Mechanism) opportunities exist in some large industrializing developing countries. For instance, China is estimated to take 48% of the world potential for CDM project activities. In reality, however, the share by China over the CDM projects registered and CDM projects in the pipeline is less than 10% as of Auguest 2005. This paper will examine the reasons behind, as reflected in China's CDM policies. Further investigation will be made into the use of these policies to boost the country's sustainable development, the sustainable development implications and effects of these policies. In addition, it is noted that incompatibility of some other Chinese laws and policies can be responsible for the low level and slow pace of CDM implementation in China and some suggestions are offered for promoting CDM project activities in China. There also exist barriers at the international level that impedes implementation of CDM project activities. A conclusion is drawn that CDM policies in a developing country like China aim mainly at promotion of sustainable development and to a lesser extent the generation of CERs.     

Assessment of the impacts of climate change and variability on water resources and use,food security,and economic welfare in Iran

Climate change influences the agricultural sector by reducing available water resources, thereby influencing income, consumer and producer surplus, and crop prices. So, it is necessary to have a comprehensive integrated method to measure the effects of these changes on natural resources and social conditions. The present study aims to use the positive mathematical programming method to discover the trend and conditions of groundwater resources, agricultural water use, food security, and economic welfare of the agricultural sector in Iran. To this end, data for the period 2000–2015 was used under four different scenarios of normal climate change, climate change, climate variability, and concurrent climate change The results showed that the mean agricultural water use will amount to 35,103.6, 26,533.8, 35,216, and 26,510.7 million m³ and the mean decline in the reserves of aquifers will amount to 4422.22, 11,165.6, 4438.25, and 11,267.4 million m³ under the scenarios, respectively. With respect to food security, the net farm revenue will be 314,560, 248,753, 315,427, and 248,574 billion IRR, respectively. The mean crop price per ton will reach 905.3, 1141.8, 904, and 1142.8 million IRR, respectively. The mean consumer surplus will be 172,107.7, 166,450, 172,024, and 166,403 billion IRR and the mean producer surplus will be 419,959.2, 395,380, 419,751, and 395,204 billion IRR, respectively. Based on the results, to reduce the adverse impacts of climate change on different studied aspects, it is necessary to change policymaking in the water and agricultural sectors, especially regarding the shift from traditional agricultural water allocation to its market-based allocation and to change planting pattern.

     

THE Clean Development Mechanism: Making it Operational

The Clean Development Mechanism (CDM) is a facility for trading `certified emission reductions (CERs) between developing and developed countries, thus saving non-renewable carbon emissions by promoting renewable energy, energy efficiency and/or carbon sequestration projects in LDC's. The purpose of the CDM is to help these latter countries meet their obligations under the Kyoto Protocol while at the same time promoting “sustainable” development in the former countries, thereby reducing the build-up of greenhouse gases (GHG). This paper examines the progress in achieving a workable CDM in time for the first commitment period (2008–2012), and the kinds of initiatives that can be pursued in the agricultural, land-use and forestry sector in tropical countries. The critical element for the success of the CDM is the participation of a broad cross-section of buyers (ultimately from developed countries) and sellers (from developing countries) of CERs. Trading is the final step, which starts with project formulation, through successful implementation and then certification. This paper lays out a market-based framework for promoting CDM transactions between private sector project developers and traders and public sector policy makers, with regulators, governed by CDM rules, overseeing the smooth running of the CDM. However, as there are numerous players; it is proposed that trial CDM projects be demonstrated with the support of National/International bodies to iron out the problems and come up with practical solutions so that carbon trading can become a reality. Most rules for the CDM were clarified at the 7th Conference of Parties (CP) in October/November of 2001 in Marrakesh. An executive Board (EB) was appointed and this EB is in charge of proposing workable ground rules to promote the CDM. These have to be submitted for approval by the 8th CP in late 2002. Three broad kinds of projects qualify for the CDM, these are: renewable energy projects that will be alternatives to fossil fuel projects; sequestration projects that offset GHG emissions; and energy efficient projects that will decrease the emissions of GHG. It is possible to have a combination of these initiatives. A fourth type covering GHG reduction is omitted. As elaborated in the text, in order to qualify for the CDM, the proposed projects may have to have additional costs when compared to the alternative(s). Two time frames have been agreed for CDM projects to qualify for the first commitment period, namely 7 years (with an option of two 7-year renewals) and 10 years. Also, for land-use, land-use change and forestry projects only afforestation/reforestation initiatives are recognized as being permissible for the first commitment period. These rules seem rather shortsighted, as forestry and/or renewable energy projects usually require more than 21 years to be fully effective. Also, the major cause of deforestation is clearing land for agriculture, not harvesting wood. Therefore, improving agricultural productivity may be the best way to reduce deforestation and its subsequent release of GHGs. These conditionalities should be re-examined when rules for the second commitment period are decided. However, various agricultural and land-use projects are discussed under the existing guidelines which could qualify as CDM projects in the first period.     

碳交易机制下可再生能源投资价值与投资时机研究

中国承诺2017年启动全国性碳排放交易系统,在碳交易机制下,可再生能源项目可以通过CCER交易获得额外收益。由于碳价格是随着市场条件而随机波动的,碳价波动性使得可再生能源发电项目投资具有了期权性质的权利,即未来不确定性可能包含更高的价值。可再生能源企业在做投资决策时,可以选择立即投资,也可以选择推迟投资,等待更多信息来提高项目收益,而立即投资的项目回报必须足够高以克服等待期权的蕴含价值。为了研究碳价波动下可再生能源项目投资,本文采用实物期权法的三叉树模型,测算了三类可再生能源发电项目投资的npv及其实物期权价值(ROV)。根据延迟实物期权决策规则,三类项目均执行期权延迟投资决策。本文还计算了在无政府补贴和有政府补贴两种情形下,三种可再生能源项目在不同时点的栏杆价格,以确定项目的投资时机。栏杆价格随着政府补贴的增加而逐步下降,说明政府补贴会促进可再生能源项目投资;栏杆价格随着时间的推移而逐步上升,意味着时间跨度越大,不确定性越大,需要更高碳市场价格来确定投资时机。本文对影响可再生能源项目投资因素敏感性进行了分析,结果表明碳价波动率与可再生能源发电项目的栏杆价格呈现正相关的关系,说明碳价波动性增加了企业投资的期权价值,却推迟了企业开展投资的时间。随着中国碳交易体系的不断完善,碳价波动幅度会趋于平稳,从而促进发电企业进行可再生能源发电项目投资。     

CDM Project Activities in China＇s Iron and Steel Industry：Current Status,Barriers and Development Strategies

China is now facing huge pressure from both the domestic concern of energy security and the global community's call for emission reduction commitment. As one of the major energy consumers and greenhouse gas emitters, China's iron and steel industry has a huge clean development mechanism (CDM) potential. This article both quantitatively and qualitatively analyzes the current status of CDM project activities in the iron and steel industry in China, including characteristics of approved project types, applicable methodologies, and potential technology fields. From the perspective of project implementation, the article summarizes development barriers such as high investment risk, difficulty in project identification, strict requirements on PPDs, long registration waiting time, and etc. Policy suggestions are also put forwarded to help better promote the development of CDM projects in the iron and steel industry.     

Economic assessment of producing a fluting paper using agricultural residues – a case study: Iran,Mazandaran Province

Given limited forest resources and increased paper consumption and imports, establishing fluting paper mills using non-wood raw materials seems more essential than ever. This paper aims to investigate, technically and economically, the possibility of establishing a fluting paper mill (with a capacity of 10,000 tons a year) from agricultural residues in Iran's Mazandaran province. The average annual agricultural residues output (including wheat, barley, rice, corn, oil seeds and cotton) in the province was about 1.3 million tons from 2000 to 2010, showing the potential of the province as an appropriate source for providing raw material from agricultural residues. For economic evaluation of the project, economic indices such as rate of return, pay-back period and production break-even point were measured. The results indicated that establishing a fluting paper mill based on agricultural residues is feasible.     

CDM Projects under the Kyoto Protocol: A Methodology for Sustainability Assessment – Experiences from South Africa and Uruguay

Under the Clean Development Mechanism (CDM) of the Kyoto Protocol, industrialised countries may finance greenhouse gases mitigation projects in developing countries. The Kyoto Protocol explicitly requires that the CDM shall assist developing countries to achieve sustainable development. However, a clear definition of sustainability for CDM projects is still debatable. MATA-CDM (Multi-Attributive Assessment of CDM Projects) is an approach that facilitates a quantitative assessment of potential projects regarding their contribution to sustainable development. This paper presents applications of MATA-CDM in two different countries. In South Africa, the application was done mainly for academic and demonstrative purposes, whereas in Uruguay it was implemented together with the responsible Designated National Authority (DNA). The work in both countries included the selection of sustainability criteria and measurable indicators. Experts weighted the criteria using personal interviews and a multi-stakeholder workshop. This method was applied to three potential CDM projects in South Africa and one in Uruguay. Results show that under the conditions of this study, the MATA-CDM approach yet fails to yield a perfect quantitative overall sustainability assessment of CDM projects but that several findings could be useful to further develop the approach with the aim to translate the vague term sustainable development to a mainstream project level. Valuable experience was in particular collected with different stakeholder processes to perform criteria weighting.     

Contribution of the sugar cane industry to reduce carbon dioxide emissions in the energy sector: the case of Mauritius

The aim of this paper was to present the contribution of the sugar cane industry to reduce carbon dioxide emissions in the energy sector. Mauritius is taken as a case study. Sugar cane was introduced in Mauritius during the seventeenth century and production of sugar started around 60 years later. Since then, the cane industry has been one of the economic pillars of the country. Bagasse, a by-product of sugar cane, is used as fuel in cogeneration power plants to produce process heat and electricity. This process heat and the generated electricity are used by an annexed sugar mills for the production of sugar, while the remaining electricity is exported to the national grid. In fact, Mauritius is a pioneer in the field of bagasse-based cogeneration power plant; the first bagasse-based cogeneration power plant that was commissioned in the world was in Mauritius in 1957. The contribution of the cane industry in the electricity sector has been vital for the economic development of Mauritius and also in terms of mitigating carbon dioxide emissions by displacing fossil fuels in electricity generation, as bagasse is classified as a renewable source. Data obtained from Statistics Mauritius on electricity production for the past 45 years were analysed, and carbon dioxide emissions were calculated based on international norms. It is estimated that savings on heavy fuel oil importation were by 1.5 million tons of oil—representing a value of 2.9 billion dollars—thus avoiding 4.5 million tons of carbon dioxide emissions. This figure can be further increased if molasses, a by-product of sugar cane juice, is used to produce bio-ethanol to be used as fuel in vehicles.     

Oil palm plantation investments in Indonesia’s forest frontiers: limited economic multipliers and uncertain benefits for local communities

This paper examines the implications of oil palm estate development in Indonesia’s frontier province of Papua. Government planners believe that oil palm investment will develop the local economy, create jobs and reduce poverty. Using the input–output approach, we find that, in aggregate terms, oil palm investments boost the economic output in the province, generate jobs and increase worker salaries. However, the oil palm subsector operates in isolation and has limited economic multipliers. The number of jobs is potentially large, but those best positioned to benefit from them are mostly skilled migrants, not local poor. The government should reduce the size of plantation investments and plan their implementation as part of a broader development package to allow greater economic integration and skill acquisition by local communities. The priority areas for plantation development should be degraded, non-forest land.     

Wind power projects in Brazil: challenges and opportunities increasing co-benefits and implications for climate and energy policies

The purpose of this article is to analyze the challenges to, and opportunities for, increasing sustainable development (SD) co-benefits delivered by clean development mechanism (CDM) wind power projects in northeastern Brazil and the resulting implications for climate and energy policies. Five methodological phases were met: First, a documentary research was conducted in the main CDM database; second was a literature review, creating the analytical framework and a survey questionnaire needed to assess the SD co-benefits from the projects; third, documentary research was used to enable ex-ante analysis of the SD co-benefits proposed in the CDM Project Design Documents (PDDs); fourth, survey allowed for the analysis of SD co-benefits perceived by project entrepreneurs (ex-post analysis); and finally, a comparison between the ex-ante and ex-post analyses was completed. The results show the importance of carrying out SD co-benefit studies after the implementation of CDM projects in order to learn lessons for new mechanisms of climate governance. The lowest SD co-benefits were water management improvement in the project influence area, soil pollution prevention, health and safety improvements and technology transfer. The greatest opportunities for increasing SD co-benefits come from the environmental licensing process and the strengthening of Corporate Social Responsibility. The greatest challenges are new technology development, stakeholders’ engagement and SD co-benefit audits. We conclude that the improvement of multi-level climate and energy governance plays a key role in increasing SD co-benefits.

     

The role of the clean development mechanism in achieving China��s goal of a resource-efficient and environmentally friendly society

This paper examines the impact of the clean development mechanism (CDM) on China??s progress in building a resource-efficient and environmentally friendly society, referred to as a dual-goal society. It presents China??s CDM activities from the perspective of policy directions, administrative arrangements and capacity building as well as outlines the regional trends and distribution of CDM projects across China??s 30 provinces. Based on regression analysis of 2006?C2009 panel data, the research was able to provide estimates at provincial level of the impacts of CDM activities on China??s CO₂ emission intensity, SO₂ emission intensity and industrial dust emission intensity. The study concludes that the active CDM projects are mainly located in the less-developed central and west China where they have provided increased opportunities for sustainable development. Furthermore, the successful implementation of CDM projects across the country has significantly decreased the emission intensity of CO₂, SO₂ and industrial dust, which means that these activities have enhanced China??s ability to build the desired dual-goal society.     

Whither the CDM? Investment outcomes and future prospects

Following an abrupt fall in carbon credit prices, 2012 has witnessed a disinterest on behalf of investors in the Clean Development Mechanism (CDM). In this paper, we aim to take a step back and provide an assessment of the CDM through a careful analysis of 6 instrument evaluation criteria. Our study indicates that, despite the important number of projects developed under the CDM, the initial ambition of a scheme that would contribute to sustainable development in developing countries has not materialised. Moreover, the environmental integrity of numerous projects is seriously questioned. Given the interaction of the mechanism with other national policies, notably in the renewable sector, the search of carbon reduction opportunities does not lead to cost-effective abatements. If the CDM governance does not score really well in terms of predictability, the mechanism’s transparency is an example for the development of future climate and development policies at a multilateral level. Finally, the lack of consideration for the demand side of the offset mechanism seriously jeopardises the persistence of this instrument. Therefore, we recommend that any CDM reform considers the demand side, for instance through the setting of a guaranteed minimum price coupled with an obligation of repurchase. One cannot expect progress in host countries if new sources of demand for carbon credits are not rapidly created in developed countries.     

A Comparative Study on the Implementation of CDM Projects in India

Since the Clean Development Mechanism(CDM) under the Kyoto Protocol was initiated,China and India have overwhelmingly led other developing countries regarding CDM projects development.A comparative study of the CDM in India and China is conducted as there are many similarities between both India and China with regard to the CDM implementation due to the fact that India is another major developing country with a large population and a potential source of GHG emissions rivaling China in the near future.Through examining the development of and legal issues for CDM projects in India,its experience and lessons regarding developing and managing CDM projects that China can critically learn are discussed.