69138 MENA Region Carbon Finance Assist Program Support to the development of CDM activities in Jordan Technical Assistance for the Greater Amman Municipality GAM Final Mission Report October 2009 Dr. Abdelmourhit LAHBABI alahbabi@menara.ma Table of Contents ABBREVIATIONS .................................................................................................... 3 EXECUTIVE SUMMARY.......................................................................................... 5 1- TASKS OF THE MISSION ................................................................................... 8 2- SELECTION CRITERIA ...................................................................................... 9 3- CDM CAPACITY BUILDING WORKSHOP ........................................................ 9 4- CDM OPPORTUNITIES FOR GAM ..................................................................... 12 4-1 Introduction.............................................................................................12 4-2 Sectoral analysis.....................................................................................12 5- PROGRAM IDEA NOTE .......................................................................................20 ANNEXES .................................................................................................................52 Annex A: Terms of reference ...................................................................... 53 Annex B: List of consulted documents...................................................... 58 Annex C: List of the persons met/interviewed .......................................... 60 Annex D: Workshop Presentations ........................................................... 63 2 ABBREVIATIONS AMDP : Amman Master Development Plan BRT : Bus Rapid Transit system CDM : Clean Development Mechanism CER : Certified Emissions Reduction CF : Carbon Finance Unit – World Bank CFL : Compact Fluorescent Lamps CNG : Compressed Natural Gas CPA : CDM Project Activity DBOT : Design, Build, Operate and Transfer DNA : Designated National Authority EB : CDM Executive Board EIA : Environment Impact Assessment ER : Emissions Reduction ERPA : Emission Reduction Purchase Agreement GAA : Greater Amman Area GAM : Greater Amman Municipality GHG : Green House Gases. GoJ : Government of Jordan GWh : Giga Watt hour (109 Watt hour) HPS : High Pressure Sodium lamps. IL : Incandescent Lamps. IRR : Internal Rate of Return JBC : Jordan Biogas Company Lmt. JD : Jordanian Dinar JEPCO : Jordanian Electric Power Co. ltd. KP : Kyoto Protocol kWh : kilo Watt hour (103 Watt hour) LEDs : Light Emitting Diodes LFG : LandFill Gas LPG : Liquefied Petroleum Gas m2 : Square meter 3 m3 : Cubic meter MEMR : Ministry of Energy and Mining Resources MENA : Middle East and North Africa region MoU : Memorandum of Understanding MVL : Mercury Vapor Lamps. MW : Mega Watt (106 Watt) MWh : Mega Watt hour (106 Watt hour) NERC: : National Energy Research Centre NG : Natural Gas NGV : Natural Gas Vehicles PDD : Project Design Document PIN : Program Idea Note PoA : Program of Activity RE : Renewable Energy REEF : Renewable Energy and Energy Efficiency Fund RRT : Rail Road Transit system RSS : Royal Scientific Society SD : Sustainable Development SWH : Solar Water Heaters TORs : Terms Of Reference UNFCCC : United Nations Framework Convention on Climate Change W : Watt WB : World Bank WBI : World Bank Institute WWTP : Waste Water Treatment Plant Currency exchange rate: 1 JD = 1,412 $ 4 EXECUTIVE SUMMARY 1- Amman city is managed by the Greater Amman Municipality (GAM) governed by a City Council composed of 68 members working within 14 committees and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on more than 1 700 km2. 2- GAM has developed recently an ambitious Master Development plan for Amman city based on an innovative approach to metropolitan, urban and community planning. It has been established with the objective of a sustainable urban development of the city ensuring a high quality of life to its residents, a minimum impact on the environment and an optimal use of local and renewable energy resources. 3- In this perspective, GAM intends to develop, in collaboration with the World Bank (WB), the different eligible CDM projects of Amman’s Master Development plan under a city wide CDM program. When approved by the CDM Executive Board, this new approach is expected to set an example of a CDM driven sustainable development of cities in the region and in the world. 4- The World Bank Institute, responsible for the CF-Assist program management, has hired Dr. Abdelmourhit Lahbabi, as short term consultant, to provide technical assistance to assess the CDM city wide programmatic approach potential in the Greater Amman Municipality (GAM) and to develop the Program Idea Note (PIN) for the most promising identified CDM Projects Activities (CPAs). 5- Two missions to Amman were organized from April 15 to April 21, 2009 and from July 03 to July 10, 2009.The first field mission has helped screen most promising projects activities for the CDM program’s CPAs development. The second mission focused on meetings with the stakeholders concerned with the targeted CPAs. 6-Meetings were held during the field missions with Mr. Ammar Gharaybah, Amman City manager; GAM’s concerned staff, the DNA at the Ministry of Environment, Ministry of Energy and Mineral Resources, Amman Institute, Royal Scientific Society, National Energy Research Centre, Jordanian Electric Power Co. ltd., Jordan Water Company Miyahuna, Jordan Biogas Company Lmt as well as with consultants working on different GAM’s projects (voir complete list in annexe C). 7- The meetings with the concerned stakeholders focused on potential CPAs development and on the required data/information gathering. Special attention was given to the concept and the scope of potential CPAs, objectives and projects status, expected implementation schedule, cost and financing, potential emissions reduction and projects’ CDM additionality. 8-. A CDM capacity building workshop was organized for GAM personnel during the first field mission. The workshop presentations provided a general overview on the national, regional and international CDM contexts and covered the following topics: Climate Change and CDM, State and perspectives of Carbon market, CDM cycle, PINs and PDD development, methodologies, additionally concept etc. 5 Special attention was given during the presentations to CDM projects examples in sectors pertinent to GAM’s PoA development: transport, wind energy, solar energy, energy efficiency, efficient lighting and waste. 9- The mission has helped identify promising CDM activities that can be developed in the framework of Amman’s urban development plan and has defined a city wide CDM PIN comprising the selected CDM projects. Overall six CPAs were developed: Wind farm for GAM’s electricity needs; Replacement of Incandescent Lamps by CFLs program : Efficient street lighting in the Greater Amman Area (GAA) ; Wide spread use of SWH for households in the GAA ; New slaughter house project: capture of the biogas of the waste water treatment plant and electricity generation ; Optimal transport system: Bus Rapid Transit and Rail Road Transit systems - Use of natural gas for vehicles. 10-The six identified projects were analyzed for their CDM development feasibility with regard to the type of the planned activities, the baseline scenario, the additionality, the existence of a CDM approved methodology and the expected emissions reduction potential. The proposed CDM projects are all located in the Greater Amman Area and they are within the mandate of GAM. However it is recommended to implement the renewable energy and energy efficiency projects in close collaboration with the RSS, the NERC and the MEMR. 11- The identified CDM projects were developed as CPAs and integrated to a city wide CDM program for Amman. A detailed Program Idea Note (PIN) was developed for the proposed program in conformity with the terms of reference of the mission. The PIN of Amman’s city wide CDM program is provided in paragraph 5 of the report. 12- It should be noted that most of the identified CPAs are at the concept idea stage. The technical feasibility studies for the identified projects are underway or planned for the short term. The assumptions made in the PIN should be validated and the ERs calculations refined once the feasibility studies done and the projects concepts fully determined. The results of these studies will help also better assess the investment required and establish the projects’ detailed financial analysis. 13-.The required investment and the expected ERs of the program CPAs are summarized in the following table. Overall the program is expected to generate an average of 560 000 t CO2/year post-2012. 6 Expected ERs Investment Expected first Yearly Average CPA N° Title first 10 years M$ crediting year CERs period tCO2 1 Wind farm for GAM’s electricity needs 72 2012 775 260 77 526 Replacement of Incandescent Lamps by 2 5,7 2012 413 129 41 313 CFL program Efficient street lighting in the Greater 3 9,15 2011 115 000 11 500 Amman Area (GAA). Wide spread use of SWH for households 4 43 2012 255 000 25 500 in the Greater Amman Area (GAA). New slaughter house project: capture of 5 the biogas of the WWTP and electricity 45,4 2012 31 480 3 148 generation Optimal transport system: BRT/RRT 6 2 650 2012 4 014 400 401 440 systems - Use of CNG for vehicles Total 2 825 2011 5 604 269 560 427 7 1- TASKS OF THE MISSION As specified in the mission terms of reference (see annexe A), the tasks assigned to the mission can be summarized as follows:  Development of a set of criteria for assessment of projects for further development. Criteria include but are not limited to readiness of GAM to implement, financing availability, approved methodology, expected implementation / construction / operation date, etc.  Assessment of the Greater Amman Municipality services and investment plans for the feasibility of a city wide CDM program, based on the criteria defined above.  Assessment of renewable energy (solar, wind), energy efficiency, wastewater, and transport sectors. Identify sectors and projects with CDM potential and develop a pipeline of CPAs (CDM project activities) based on Program of Activities (PoA) approach.  Based on the pipeline developed and identified, determine the most eligible (prioritize) CDM project activities that can be considered potential candidate and prepare a list of data / information / checklist that needs to be prepared and provided by GAM, which should include but not limited to the scope and the objectives of the CPA; the cost estimate and financing scheme, implementation schedule, the institutional arrangements and implementing entities etc. in order to validate the feasibility of the proposed CPAs.  Validate the selected potential CPAs, and elaborate the Program Idea Note (PIN) : o Collect relevant information for the preparation of the Program Idea Note (PIN) and the individual CPAs. o Liaise with other consultants (legal, technical, environmental, etc.) recruited by the Greater Amman Municipality for the preparation of this Municipal Services PoA and take into account, whenever relevant, the findings of their respective due diligence. o Determine a likely scenario for the portfolio of projects (CPAs) that will be included in this City wide PoAs and estimate the total amount of Emission Reductions (ERs) generated from each CPA. o Provide a preliminary analysis of baseline and additionality. o Based on the information collected from GAM, consistent with the agreed scenario for the portfolio of projects, prepare a financial analysis required for the PoA and the CPAs using the format prescribed by the World Bank. 8 o Prepare a brief summary of the major environmental and socio- economic benefits (local and global) expected from the PoA and CPAs. o Complete the PIN sections as needed. 2- SELECTION CRITERIA The initial selection criteria of the CPAs were based on the list proposed in the terms of reference, namely: 1. Readiness of GAM to implement the selected activity; 2. Financing availability; 3. Approved CDM methodology ; 4. Emissions reduction potential; 5. Expected implementation date. Meetings with GAM management confirmed that all CDM opportunities of Amman’s urban development plan as well as all activities under GAM’s mandate should be explored. Given the fact that the CDM projects are to be developed under the city wide programmatic approach that allows for various methodologies to be used, it was decided to include all Amman City wide eligible activities. 3- CDM CAPACITY BUILDING WORKSHOP The objective of the workshop was to raise the awareness of all concerned GAM’s Staff on the benefits of CDM and help identify projects ideas to be considered for Amman’s City Wide CDM program. Overall, about ten GAM’s staff members have participated in the workshop. The workshop agenda is presented in the following page and the presentations are provided in annex D. Workshop minutes: A welcome opening speech was made by Mr. Bashar Haddaden, Director Special Projects & Investments Department at GAM who summarized GAM’s development plans and stressed the need for GAM to develop the CDM activities as a tool for the sustainable development of the City. A presentation on the CDM concept was made as introduction to the workshop. It outlined the modalities and requirements of the UNFCCC, Kyoto Protocol (KP), Marrakech accords and the CDM. An overview of carbon finance and CDM market was offered during the first session of the workshop. The CDM national context was covered in the second presentation made by Eng. Hussein Badarin, Director of Monitoring and Assessment, CDM EB member and DNA representative, Ministry of Environment. The presentation outlined the CDM activities in Jordan, the DNA role and procedures for CDM projects’ evaluation by the DNA. 9 The following presentation focused on the Gabawi landfill for which GAM is currently developing a biogas to energy CDM project. In the last presentation, CDM methodologies, baselines and additionally were illustrated with many examples from various sectors: renewable energy, energy efficiency, efficient lighting, cogeneration, fuel switching, transport systems, etc. An open question and discussion session was held after the presentations. Answers to questions on the requirements, CDM procedures and eligibility were provided by the consultant and the DNA representative. The discussion session focussed mainly on the CDM opportunities for GAM and the best approach to develop the identified CDM potential projects. 10 MNA Region - Carbon Finance Assist Program Support to the development of a city wide CDM program for Greater Amman Municipality CDM Workshop Tuesday April 21, 2009 PROGRAMME 9:00-9:15 Registration Welcome opening remarks; 9:15-9:25 Objective and Agenda of the Workshop GAM/Ministry of Environment/DNA 1- Kyoto Protocol, Project Cycle Dr. Lahbabi 9:25-9:45 Carbon market World Bank Consultant Eng. Hussein Badarin, 9:45- 10:00 2- CDM in Jordan – Role of the DNA DNA Eng. Ahmad G. 10:00-10h15 3 Amman Ghabawi landfill CDM project Alhyasat /GAM 10:15-10:45 Coffee Break 4 CDM in Practice – Examples (Renewable 10:45-11h15 Energy, Energy efficiency, Transport, Solid Dr. Lahbabi waste, etc.) 5 Questions – Clarifications 11:15 -12:00 GAM/DNA/WB Discussion and recommendations 11 4- CDM OPPORTUNITIES FOR GAM 4-1 Introduction The analysis of the GAM activities and urban development plans confirmed that the potential eligible CDM activities concern six main sectors: Solid waste; Renewable energy; Energy efficiency; Fuel switching; Waste water treatment; Transport. The CDM opportunities of these sectors were explored for potential CPAs during the field visits. Meetings were held with the main stakeholders concerned with the projects implementation and CDM development. 4-2 Sectoral analysis Solid waste: Solid waste management in the GAA is under the GAM responsibility. It is also considered as one of the most promising sector for municipalities for CDM development. GAM has already developed two CDM projects in the sector: Russeifeh landfill: the PDD has been validated and deposited for registration. The Jordan Biogas Company has signed an Emission Reduction Purchase Agreement (ERPA) with the Finn Government to develop the CDM Project. Al Ghabawi landfill: the PDD is under validation. GAM has signed an ERPA with the WB for the development of the CDM project and for CERs handling. The biogas production and use for electricity generation will be subcontract to a private operator who will also have the responsibility of the ERs monitoring. The CDM projects of the Municipal Solid Waste sector are under validation for registration as independent projects and thus won’t be considered for the city wide CDM program. Renewable Energy: Renewable energy is one of the most productive sectors for carbon credits. The sector accounts for around 70% of the CDM registered projects1. It comprises solar, wind, hydro as well as biogas, biomass and geothermal projects. The Government of Jordan GoJ has adopted a Renewable Energy strategy that sets a target of 7% of the country’s energy mix to come from renewable sources by 2015 and up to 10% by 2020. Most of the RE contribution is expected to come from wind farms. 1 As of April 18, 2009 12 A draft of an Energy and Mining law has been prepared and is currently in the process of validation and approval. The new law proposal provides for extensive financial incentives for the development of RE in Jordan: income tax holiday, duty free equipment imports, waiver of stamp duties, free use of public lands, and free cost of interconnecting to the electricity grid. The law also provides for the establishment of a Renewable Energy and Energy Efficiency Fund REEF for RE projects development through a performance based subsidies/grants Two promising CPAs have been identified in the Renewable Energy sector: Wind energy generation for GAM use ; Solar water heaters program for Amman’s households. Wind farm: The proposed project consists of the investment in a wind farm that will displace the current electricity used by GAM mainly for streets lighting. The project aims at the supply of the GAM from a clean and Renewable Energy (RE) source namely wind and thereby help reduce the level of carbon emissions associated with the use of the fossil fuels based grid electricity. This project is to be developed in close cooperation with NERC according to the recent MoU signed by GAM and NERC. The details of the CDM CPA developpement (context, eligibility, methodology, ER evaluation, environmental and social benefits, etc.) are presented in the CDP program PIN (see paragraph N°5). The project is at the concept idea stage. The preliminary ER evaluation is based on the following assumptions: Parameter Unit Value GAM electricity bill M JD/year 6,5 Length of slighted streets km 633 Electricity unit price JD/kWh 0,051 GAM electricity consumption GWh/year 126,51 Installed capacity estimation MW 41,12 Grid emission factor t CO2/MWh 0,6128 Expected annual emissions reduction t CO2/year 77 500 13 Note that currently, not all street lighting in Amman is the responsibility of GAM. It is divided between GAM, the Ministry of Public Works and Housing and JEPCO. According to the director of the lighting section in GAM, an agreement will be signed between GAM and the Ministry of Public Works and Housing to transfer the responsibility of some streets lighting to GAM (270 km worth) and as a result the current GAM’s electricity bill will increase substantially. The project is based on the future GAM’s electricity needs after the transfer of the 270 km long streets. The proposed installed capacity is 40 MW and the resulting ERs are estimated at 77 500 t CO2/year. Solar Water heaters program: Jordan enjoys a high potential of solar energy (5.6 kWh/m2/day) and solar applications are very common: water heating, space heating, crop and vegetable drying. It is estimated that about 15% of households in Jordan use SWH as the main energy source for water heating. According to the National Energy Renewable Centre (NERC), there are over 30 local manufacturers of solar collectors in Jordan, most of them located in Amman. However, only two of these manufacturers produce collectors in accordance with the RSS design criteria. The annual production rate is around 4,000 units. Solar collectors are also imported mainly from Turkey and Europe. Despite the existence of a local SWH industry and the current fair penetration rate, the potential of solar energy is still underexploited. This could be explained by the various regulatory, technical, financial and commercial barriers the large scale deployment of SWH is facing. The proposed CPA aims at the wide spread use of SWH for households in the Greater Amman Area (GAA). The CPA implementation will help achieve the Energy Strategy target to improve the current penetration rate of SWH in Jordan from 15% to 25% by 2015. A total of 42 000 household SWH should be installed in five years period representing 107 000 m2 of solar panels. The total installed capacity is estimated at 70 MW peak. With the CPA implemented it is expected that the penetration rate will reach 25% in the GAA by the end of the program achieving thereby the objective of the Jordan Energy Strategy for the solar water heating systems. A diagnosis of the current SWH market should be carried out for the CPA concept design to better assess the demand and help identify the barriers to the widespread of SWH in Jordan. The CPA concept will integrate the solutions to the identified barriers as well as lessons learned from SWH programs’ implementation in others countries. More importantly, it should define the appropriate financial scheme for the large deployment of SWH in Jordan. This project is at the concept idea stage. It is to be developed in close cooperation with NERC according to the recent MoU signed by GAM and NERC. 14 The details of the CDM CPA developpement (context, eligibility, methodology, ER evaluation, environmental and social benefits, etc.) are presented in CDM program’s PIN (see paragraph N°5). The preliminary ER evaluation is based on the following assumptions: Parameter Unit Value Installation rate Units/year 8 500 Program implementation period years 5,0 Solar Unit used Person per household 5,0 Water requirement l/day 250,0 Water temperature °C 60,0 Panel surface m2 2,5 Capacity kW 1,6 Cost $/m2 400,0 Increase rate without CPA Units/year 1 700 Energy currently used for water heating Solar % 15% Electricity % 20% Gas or kerosene/diesel % 65% Based on the above assumptions, the expected average ERs over the first 10 years are estimated at 25 500 t CO2/year. Energy efficiency: Energy Efficiency comprises all the technologies, processes and measures that reduce the energy consumption required to produce one unit of goods or to deliver a specified service. Thus, for the same production or service offered, less energy is used and the associated GHG emissions are then reduced. GAM’s current energy needs are mainly for lighting. Accordingly, two CPAs are proposed for efficient lighting to be developed within the Amman’s city wide CDM program. Electricity use of lighting is estimated in Jordan at 1 800 GWh/year representing more than 18% of the total electricity consumption. Moreover, lighting contributes significantly to the power peak load resulting in additional investment requirements in the generation capacity to meet the electricity demand. It should be noted that the use of efficient lighting has a potential of 40% to 70% electricity savings. In fact most of the large scale efficient lighting projects are driven by the objective of addressing peak power shortages, load shedding, etc. The proposed program has a three fold benefit a) energy savings and reduced monthly electricity bills for the consumers ii) power peak demand reduction iii) reduction of the GHG emissions associated with the electricity generation. Various energy efficient lighting options exist: Compact Fluorescent Lamps (CFL) – High Pressure Sodium lamps (HPS), Fluorescent tube lights, Electronic Ballasts, Light Emitting Diodes (LEDs), etc. 15 Two CPAs has been identified for the efficient lighting: replacement of energy inefficient Incandescent Lamps (IL) by CFLs (15 W and 20 W) in households and efficient street lighting using High Pressure Sodium (HPS) lamps (70 W) in replacement of Mercury Vapor Lamps (125 W, MVL). Efficient lighting for households: The proposed CPA consists of a large scale use of CFLs for households’ and buildings lighting in the GAA. It will help replace the current widely used non efficient Incandescent Lamps (IL) by CFLs. It will contribute to substantial electricity savings and thus will help reduce the emissions of Green House Gases (GHG) associated with fossil fuels electricity generation. The proposed CPA aims at the replacement of 1,74 million IL with CFLs. The project is expected to reach a household penetration rate of 40% (8% a year) after five years operational period. The main parameters used for the CPA’s ERs evaluation are summarized in the following table: Parameter Units Value Average number of 60 W Lamps Lamps/household 6 Average number of 100 W Lamps Lamps/household 4 Average daily hours use Hours 3 Total number of households in GAA 434 806 CFL yearly Penetration rate % households/year 8% Targeted penetration rate % households 40% Adjustment savings factor For CFL component % 25% Emission factor t CO2/MWh 0,6128 After the fifth year, the ERs should be maintained at the 51 600 tCO2 level provided that the lamps are replaced at the expiration of their life time or failure Besides the energy savings and GHG emissions reduction the CFL program will help offset around 38 MW of peak demand. As an energy efficiency project, the proposed CPA is eligible for CDM and could benefit from the REEF’s financial subsidies/grants. The details of the CDM CPA developpement (context, eligibility, methodology, ER evaluation, environmental and social benefits, etc.) are presented in the CDM program PIN (see paragraph N°5). 16 Efficient street lighting: The proposed CPA aims at the systematic use of efficient lighting lamps in the secondary streets of the Greater Amman Area (GAA). The proposed CPA will help replace the non efficient Mercury Vapor Lamps (MVL) widely used for secondary street lighting with High Pressure Sodium lamps (HPS). It will contribute to substantial electricity savings and thus will help reduce the emissions of Green House Gases (GHG) associated with fossil fuels electricity generation. The proposed CPA aims at the replacement of 100 000 Mercury lamps with HPS. The expected CERs have been evaluated at 11 500 tCO2/year. The details of the CDM CPA developpement (context, eligibility, methodology, ER evaluation, environmental and social benefits, etc.) are presented in the CDM program PIN (see paragraph N°5). Fuel switching: Switching from intensive fossil fuels (coal, heavy fuel oil, gas oil, etc.) to less intensive fossil fuels (Natural gas, LPG) results in GHG emission reductions achieved as a result of the decreased carbon intensity of electricity and/or heat generation. Hence the use of natural gas for power generation, in the industry, households or in cars is eligible for CDM. Natural gas is supplied to Jordan through ArabGas pipeline (Egypt-Jordan, Syria, Lebanon then Cyprus and Europe) operational since 2003. Most of the thermal power stations have been converted to natural gas: 80% of electricity generation in Jordan is based on natural gas. Purchase agreement between Egypt and Jordan has been signed for the Natural Gas (NG) supply for the period 2003-2018. Negotiations are underway for supply increase to extend the NG use to households, commercial and industrial establishments and for the use in Natural Gas Vehicles (NGV). The Ministry of Energy and Mineral Resources is planning to connect Amman to the NG pipeline network and use NG for 240 000 households over the period 2010-2020. The first phase of the project is under negotiation. The total project’s investment cost is estimated at 1 billion $. The first connections are expected by 2012. According to the project’s implementation schedule, 500 M m3/year should be supplied by 2016 for 74 000 households, 1000 commercial outlets and 8 CNG stations for NGV. The project’s implementation should be done according to a DBOT scheme managed by the MEMR. Despite its obvious benefits for the GAA residents and for GAM, the NG project is highly technical and GAM direct contribution to the project activities should be limited. Accordingly, the proposed CDM developpement for GAM was limited to the NGV component of the NG project. The corresponding CPA is developed under the transport sector (see transport paragraph below). Waste water treatment: the company Miyahona is in charge of water supply and waste water treatment in Amman area. The company is managing two waste water treatment plants: Abou Noussair (250 000 m3/day); Wadi Sir 4 000 m3/day and a dumping/transfer site in Ghazal close to the slaughter house. 17 GAM has decided to establish a new slaughterhouse servicing the greater Amman area including Al-Russayfeh and Al-Zarqa. The project aims at the development of a new modern slaughterhouse facility in accordance with national and international technical and hygiene standards. The project is to be implemented in partnership with a private operator on a DBOT basis. The qualified investor will take in charge the design, building and operating of the new facility for 25 years. The project site has been selected and the land plot, located 5 km south of Amman near the power station, will be granted by GAM. The project’s feasibility study has been done and the EIA of the project is underway. The new facility will provide for slaughtering services, slaughtering inspection services, meat inspection, sales of by-products (hearts, livers, skins etc.) storage services, freezing store services, biogas capture and electricity generation as well as waste water treatment and water reuse for irrigation. The new slaughterhouse facility will be designed to handle, at full capacity, 41 600 cattle/camels, 624 000 sheep/goats and 12 480 000 birds per annum. The new slaughterhouse facility is to be equipped with a biological waste water treatment plant. Biogas generated from the anaerobic treatment of the charged wastewater will be captured and use for electricity generation. The electricity produced will be used directly in the slaughterhouse providing for around 60% of the facility electricity needs. According to the project’s Feasibility Study (FS) [9], at full capacity, an estimated 6 263 MWh a year will be generated from the captured biogas. A proposed CPA related to the WWTP of the new slaughter house project has been considered for Amman’s wide city CDM program. It consists of the capture of the biogas generated by the organic waste anaerobic treatment and its use for electricity generation. Based on the electricity generation of the project’s FS, the CPA expected ERs have been estimated at 4 400 tCO2/year. The details of the CDM CPA developpement (context, eligibility, methodology, ER evaluation, environmental and social benefits, etc.) are presented in CDM program PIN (see paragraph N°5). Transport: Amman is a growing city with an estimated population of 2.3 millions. The rapid population growth is expected to continue with GAA population reaching 6.4 millions by 2025. The cars park in Jordan is growing at an estimated average of 10%. Most Amman inhabitants use their cars for transportation. The following table presents the transport repartition mode in Amman city: Transport mode % Private car 53% Bus or minibus 18% Walking 10% Other modes 19% Source: GAM, transport Department, 2007 18 According to GAM, public transport in Amman is underdeveloped, unreliable and lacks a well structured hierarchy of transportations modes and services. The proposed CPA consists of the implementation of a comprehensive transport optimization action plan for the GAA calling for the increase of the public transport mode from the current 18% to 40% by 2025. Besides comprehensive transport policies, the action plan envisions the deployment of a Bus Rapid Transit system (BRT), a Rail Road Transit system (RRT) and the use of Compressed Natural Gas (CNG) for vehicles. Fuel switch to CNG is planned for GAM fleet comprising 25 000 Vehicles and Taxis. The proposed CPA will provide a high quality public transport service and increase the share of passengers using public transport system. The CPA will thus help reduce the fuel intensity for transport. The CPA will also help switch utilities vehicles (buses and taxis) from gasoline and diesel to a more environmentally friendly fuel namely natural gas. The use of NCV will reduce the emission of GHG mostly CO2. GAM’s project is at the conception phase. The CPA was developed under the following assumptions: Parameter Unit Value BRT/RRT Number of vehicles a day 350 000 Increase rate % 5% Average number of persons per car 1,3 Average distance km/day 40 Average fuel consumption l/km 0,1 Fuel consumption liters/day 1 400 000 People taking public transportation % 18% Increase rate % 5% Target public transportation by 2025 % 40% Natural Gas Vehicles Number of concerned vehicles 25 000 Average fuel consumption l/km 0,12 Average distance km/j 120 ER estimated rate % 15% The CERs estimation based on the objective of reaching a 40% of Amman passengers using public transport in 2025 and the conversation of 25 000 utility vehicles to natural gas is presented below: 19 ER tCO2 Year BRT/RRT NGV Total 2012 43 300 10 000 53 300 2013 90 900 20 100 111 000 2014 143 200 30 100 173 300 2015 225 500 40 200 265 700 2016 296 000 50 200 346 200 2017 373 000 50 200 423 200 2018 457 000 50 200 507 200 2020 548 400 50 200 598 600 2021 679 800 50 200 730 000 2022 755 700 50 200 805 900 TOTAL 3 612 800 401 600 4 014 400 The expected CERs annual average over the first ten years is around 401 400 t CO2/year. The above CERs estimation is based on the preliminary assumptions made that should be refined once the project feasibility study has been done and the precise CPA concept has been fully determined. 5- PROGRAM IDEA NOTE The PIN developed for GAM using the WB template for City Wide CDM program is presented below. It comprises the six identified CPAs as detailed in the previous paragraph. It should be noted that most of the identified CPAs are the concept idea stage. The assumptions made should be validated and the ERs calculations refined once the CPAs feasibility studies done and the projects concepts fully determined. The PIN of Amman’s city wide CDM program is provided below: 20 City-wide PROGRAM NOTE Name of City: Greater Amman SECTOR Scopes: Renewable energy, Energy Efficiency and Waste Date submitted: October 05, 2009. Description of size and quality expected of a Program Note Basically a PN will consist of approximately 10-12 pages providing indicative information on:  the type of program – policy, sector and technology  location  the suggested crediting life time  No. and types of project activities expected to participate  The Methodology to be used, if existing  the financial structuring (indicating which parties are expected to provide the program and individual project financing)  the project’s other socio-economic or environmental effects/benefits While every effort should be made to provide as complete and extensive information as possible, it is recognised that full information on every item listed in the template will not be available at all times for the entire program (POA) and is not expected for each project (CPA). 21 A. PROGRAM DESCRIPTION, TYPE, LOCATION AND SCHEDULE OBJECTIVE OF THE PROGRAM The objective of the program is to promote city wide sustainable development Describe in not more than 2 lines projects within the framework of the ambitious Greater Amman Master Development plan 2025 (Policy, Technology, other goal) DESCRIPTION OF PROGRAM The program aims at the CDM development of all GAM’s SD projects and the offset or reduction of GHG emissions associated with the envisioned About ½ page spectacular urban development of the city. The proposed program’s CPAs will tackle the use of renewable energy based electricity, the efficient lighting of households and city streets, the extensive use of solar water heaters, methane capture and use for electricity generation in the new state of the art planned slaughterhouse and finally transport. Three potential CPAs have been considered for the transport sector: Bus Rapid Transit system Rail Road Transit System Use of Compressed Natural Gas for vehicles PROGRAM FINANCE (Description of financial The investment costs of the different program’s considered CPAs are provided mechanism to be used by the below: program – loan/subsidy/grant, if any. Also describe the impact of program finance on CPA Investment CPA N° Title implementation, if any.) M$ Investment in a wind farm that will displace 1 the current electricity used in Amman mainly 72 for streets lighting. Replacement of Incandescent Lamps by CFL 2 5,7 programs Systematic use of efficient lighting lamps in 3 the secondary streets of the Greater Amman 9 Area (GAA). Wide spread use of SWH for households in 4 43 the Greater Amman Area (GAA). New slaughter house project: capture of the 5 biogas associated with the waste water 45,3 treatment plant and electricity generation Optimal transport system: Bus Rapid Transit 6 system, Rail Road Transit System use of 2 650 Compressed Natural Gas for vehicles Total 2 825 The financing schemes of the program’s CPAs are to be determined at subsequent projects’ development stage. They could include, equity, loan, grants, private sector financing through DBOT schemes, project’s beneficiaries contribution etc. 22 3COORDINATING ENTITY The program’s coordinating entity is Greater Amman Municipility GAM. A public (Public/Private, state legal and entity in charge of the city wide services management. financial status and program implementation, monitoring and The Municipality of Greater Amman is Governed by a special legislation and management capacity) regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment of millions JD by 2025. DESCRIPTION OF Include all eligible sectors and activities TECHNOLOGY or MEASURES TO BE EMPLOYED CPA 1: 40 MW Wind farm- Wind farm are wildly used. Important progress has been made in the design of the turbines. 5 MW unit turbine capacity is currently common. CPA 2 and CP 3: Efficient lighting for households and streets. Various energy efficient lighting options exist: Compact Fluorescent Lamps (CFL) – High Pressure Sodium lamps (HPS), Fluorescent tube lights, Electronic Ballasts, Light Emitting Diodes (LEDs), etc. CPA 2 is to be implemented for the replacement of energy inefficient Incandescent lamps by CFLs (15 W and 20 W). For street lighting, CPA 3 aims at the replacement of all the Mercury Vapor Lamps (125 W, MVL) by more energy efficient lamps namely HPS lamps (70 W). CPA 4: Wide use of Solar Water Heaters (SWH). Solar water heating technology is simple and widely used. It consists mainly of solar panels that convert solar radiation into thermal energy for the heating of domestic water, water storage tank, circulating pump, water piping, pressure and temperature control measurement equipment etc. Currently, there are over 30 local manufacturers of solar collectors in Jordan, most of them located in Amman. CPA 5: Biogas capture from slaughter house waste water and use for electricity generation. Biogas based electricity generation motors are reliable and widely used. CPA 6: Optimal transport system for Greater Amman Area (GAA). The proposed CPA is part of GAM’s transport action plan that aims at the establishment of an integrated transport network that provides high quality, safe and reliable transport services to the residents of GAA. It comprises, among other activities, a Rapid Bus Transit (BRT) and rail-based corridors. TYPE OF PROGRAM Sectoral Scope Renewable energy; (mention what is applicable) Energy efficiency; Fuel switch; Waste; Transport Greenhouse gases targeted Mainly CO2 and CH4 CO2/CH4/N2O/HFCs/PFCs/SF6 (mention what is applicable) Abatement/CO2 sequestration CO2 Abatement (mention what is applicable 23 LENGTH OF PROGRAM 28 years (Up to 28 years) LOCATION OF THE PROGRAM Country / Region The program activity covers the Greater Amman Area (one or more) RELATIONSHIP BETWEEN RELATIONSHIP BETWEEN THE CITY MANAGERS AND THE PROGRAM & PROJECT (if any DEPARTMENT (E.G., WATER SUPPLY) OR CONTRACTOR (E.G., existing between coordinating TRANSPORT OPERATOR) entity and CPA owner; if not, what is expected in the future) The considered CPAs are part of the mandate of the Greater Amman Municipality. However, given the required management technical expertise, GAM will subcontract some activities to private sector operators and will establish CPAs specific partnerships with public entities such as the Royal Scientific Society (RSS), National Energy Research Centre (NERC), Ministry of Energy and Mining resources, The Jordanian Electric Power Co. ltd. JEPCO; The Ministry of Transport, Ministry of Environment. A MoU has been already signed between GAM and NERC for the collaboration on the implementation of the renewable energy CPAs, namely Wind farm and SWH. Given the importance of the transport projects, the sector considered CPAs will probably be implemented by private transport operators financing under long terms contracts with GAM. ELIGIBILITY CRITERIA DETAIL CRITERIA – - GHG IMPACT (Which projects will be allowed to - FINANCIAL CONSTRAINTS join the program and how will - TECHNICAL CHALLENGES they be identified?) - AND SO ON The following criteria have been retained for the eligibility of a CPA in the proposed City wide CDM program: CPA activity is located in the GAA; The CPA activity is related of one of the five sectors targeted by the program: renewable energy, energy efficiency, fuel switch, waste and transport; CDM eligibility and additionality of the considered CPA; Availability of an Environmental Evaluation of the CPA in conformity with the Jordan laws and World Bank Safeguards policies. EXPECTED PROGRAM SCHEDULE PROGRAM START DATE The planned starting year of the program is 2012 Year in which the Program will become operational PROGRAM IMPLEMENTATION A two years period is required for the CPAs preparation and the program SCHEDULE registration Preparation period: 2010-2011 CPAs implementation period: 2012-2016. The transport CPA will be carried out in two phases: Phase 1: 2010-2015 : BRT 30 km three routes ; 20 km rail and Intermodal and gateway terminals Phase 2: 2015-2025: BRT 20 km three routes; 20 km rail, gateway terminals and Park and Ride facilities. Estimate of time required before becoming operational after Two years approval of the PIN 24 Expected first year of 2011 CER/ERU/VERs delivery Current status or phase of the PROGRAM DESIGN (Pre- Most of the CPAs considered are at the pre-selection/opportunity study phase selection phase/opportunity study finished/pre-feasibility study finished/feasibility study finished/negotiations phase/contracting phase etc.- mention what is applicable and indicate the documentation) Current status of acceptance of the Host Country (or countries) The CPA ideas were discussed with the technical service of GAM. The PIN is to Letter of No be submitted to GAM for approval. Objection/Endorsement is available; Letter of No An information letter on the program and the considered CPAs has been sent Objection/Endorsement is under by GAM to the DNA. discussion or available; Letter of Approval is under discussion or available (mention what is applicable) The position of the Host Country Has the Host Country ratified/acceded to the Kyoto Protocol? (or countries) with regard to the Kyoto Protocol Jordan has ratified the Kyoto Protocol on January 17, 2003 Has the Host Country established a CDM Designated National Authority / JI Designated Focal Point? Jordan has an established DNA 25 B. METHODOLOGY AND ADDITIONALITY Methodology LIST ALL THE METHODOLOGIES THAT WILL BE USED Please choose from the following - WASTE options: - TRANSPORT - ENERGY USE For CDM PROGRAMS: - OTHER NOT COVERED BY CURRENT CDM METHODOLOGIES (i) Covered by an existing Approved CDM Methodology or Energy use: Approved CDM Small-Scale ACM0002: Consolidated baseline methodology for grid-connected Methodology electricity generation from renewable sources (ii) Needs a new methodology AMS-IIJ: demand side activities for efficient lighting (iii) Needs modification of existing AMS I.C : thermal energy for the user Approved CDM Methodology AMS I.D. : Grid connected renewable electricity generation Waste ACM0001 : Consolidated baseline and monitoring methodology for landfill gas project activities AMS III.H. Methane Recovery in Wastewater Treatment Transport: AM 0031: Baseline Methodology for Bus Rapid Transit Projects AMS III.C: Emission reductions by low-greenhouse gas emitting vehicles New methodology under validation: NM0258 (variation of AM0031 and NM0266 for Railway Rapid Transit Projects) ESTIMATE OF GREENHOUSE Annual (if varies annually, provide schedule): GASES ABATED/ Up to and including 2012: CO2 SEQUESTERED Up to a period of 10 years: BY ONE TYPICAL CPA In metric tons of CO2-equivalent, please attach calculations Expected first Expected ERs Yearly Average CPA N° Title Investment M$ first 10 years crediting year CERs period tCO2 Investment in a wind farm that will displace 1 the current electricity used in GAM mainly 72 2012 775 260 77 526 for streets lighting. Programme for the replacement of 2 5,7 2012 413 129 41 313 Incandescent Lamps by CFL systematic use of efficient lighting lamps in 3 the secondary streets of the Greater 9,15 2011 115 000 11 500 Amman Area (GAA). wide spread use of SWH for households in 4 43 2012 255 000 25 500 the Greater Amman Area (GAA). New slaughter house project: capture of 5 the biogas associated with the waste water 45,4 2012 31 480 3 148 treatment plant and electricity generation Optimal transport system: Bus Rapid Transit system, Rail Road Transit System 6 2 650 2012 4 014 400 401 440 Use of Compressed Natural Gas for vehicles Total 2 825 2011 5 604 269 560 427 ADDITIONALITY The program additionality is established by the justification of the individual Please explain which additionality CPAs additionality. arguments apply to the program (This should be reflected directly For the Wind farm, according to the ACM0002, the additionality is to be in program design): established by an investment analysis by comparison of the CPA IRR with the GAM IRR benchmark. (i). Would these emission reductions occur without this For the efficient lighting projects the additionality is to be justified by the initial investment barrier. Without the financial schemes to be established by the 26 CDM program or the program, households won’t invest in energy efficient lighting due the required policy/technology that it initial investment. supports? (ii) The policy, regulation or For solar water heaters, initial investment barrier, technological barriers and incentive scheme covered by this the common practice could all be invoked for the CPA additionality program was either not existing justification. earlier or not implemented effectively (require proof for As for the biogas capture from the WWTP of the new slaughter house and use latter) for electricity generation, it can be shown that the electricity revenues won’t (iii) the program provides compensate for the CPA investment cost. In other words, without the financing/grant support, without additional revenues of carbon, the CPA is not financially attractive. which projects would not be GAM has adopted an action plan for the improvement of the public transport. implemented The carbon revenues will contribute to lower public transport costs and fares. It (iv) country risk, new technology will thus help attract more passengers to reach the ambitious set target of 40% for country, other barriers of the total city passengers using public transportation by 2015. (v) other Technological barrier, higher cost, common practice are barriers among others that can be invoked for additionality justification of the use of NGV. SECTOR BACKGROUND PROVIDE INFORMTION ON THE CITY: Please describe the laws, regulations, policies and Amman, the capital of Jordan, is one of the oldest continually inhabited cities in strategies of the Host Country (or the world but essentially it has been developed under its current modern shape multiple countries) that are of during the 20th century. Few isolated remains of previous settlements can be central relevance to the proposed found amongst the modern buildings. Traces have been found of Stone Age program, as well as any other homes dating to 7000 BC. major trends in the relevant sector. Like Rome, Amman is built on seven hills, known as jabals, which define the city. Each of these neighborhoods once had a traffic circle and directions are given in relation to them. First Circle is near downtown and from there the city spreads westward to Eighth Circle. The greater Amman area extends on some 1700 km2. The current population of the city of Amman is 2.3 millions corresponding to 38.7% of Jordan total population. The capital population is expected to reach 6.4 millions by 2025, growing at an annual average rate of 6%. The City is managed by the Greater Amman Municipality and Governed by City Council composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. http://www.ammancity.gov.jo/en/english/default.asp C. PROGRAM FINANCE TOTAL PROGRAM COST ESTIMATE Development costs ___ 4 US$ million (Feasibility studies, resource studies, etc.) Management costs ___ 7 US$ million (Management of program) Program Costs 2 825 US$ million (If any subsidy/loan/incentive for program participants) Other costs (please specify) ___ 4 US$ million (Legal, consulting, etc.) Total project costs 2 840 US$ million 27 SOURCES OF FINANCE TO BE SOUGHT OR ALREADY IDENTIFIED Equity Name of the organizations, status of financing agreements and finance (in US$ million) Debt – Long-term Name of the organizations, status of financing agreements and finance (in US$ million) Debt – Short term Name of the organizations, status of financing agreements and finance (in US$ million) Carbon finance advance 2 payments sought from the World Bank carbon funds. (US$ million and a brief clarification, not more than 5 lines) SOURCES OF CARBON FINANCE Name of carbon financiers other than any of the World Bank carbon funds that your are contacting (if any) INDICATIVE CER/ERU/VER PRICE PER tCO2e Price is subject to negotiation. Please indicate VER or CER preference if known. TOTAL EMISSION REDUCTION PURCHASE AGREEMENT (ERPA) VALUE A period until 2012 (end of the first commitment period) Period till end of Program D. EXPECTED ENVIRONMENTAL AND SOCIAL BENEFITS – PROGRAM LEVEL LOCAL BENEFITS The program activity will result in the displacement of fossil-based electricity, E.g. impacts on local air, water elimination of biogas emanations and reduction of individual cars usages. All and other pollution. these activities have positive impacts on the local air quality. GLOBAL BENEFITS Besides reducing GHG emissions, global benefits of the program at a national Describe if other global benefits level can be summarized as follows: than greenhouse gas emission  Develop sustainable management practices for GAM; reductions can be attributed to  Improve the global environment in Jordan ; the project. It is expected that the program will be a show case of cities sustainable urban development in the region. 2 Advance payment subject to appropriate guarantees may be considered. 28 SOCIO-ECONOMIC ASPECTS What social and economic effects can be attributed to the 200 000 people will profit directly from solar water heating; PROGRAM or a typical inhabitants of Amman will benefit from efficient lighting provided by PROJECT under the PROGRAM carbon free electricity which would not have occurred in Inhabitants of Amman will also benefit from a modern and reliable a comparable situation without transport system. They will save time transiting in the Greater City of that project? Amman. Expected positive impacts on economic activities Indicate the communities and the number of people that will benefit from this project. About ¼ page What are the possible direct On the social level, the project will help provide for both short- and long-term effects (e.g. employment employment opportunities in Amman: local contractors and workers will be creation, provision of capital required for construction and operation of the transport system and for the SWH required, foreign exchange manufacturing. effects)? About ¼ page The program will reinforce the solar panel industry and help set quality standards for the local SWH. What are the possible other effects (e.g. training/education associated with the introduction of new processes, technologies and products and/or the effects of a project on other industries)? About ¼ page ENVIRONMENTAL STRATEGY/ The Government of Jordan GoJ has adopted a Renewable Energy strategy that PRIORITIES OF THE HOST sets a target of 7% of the country’s energy mix to come from renewable COUNTRY sources by 2015 and up to 10% by 2020. Most of the RE contribution is A brief description of the expected to come from wind farms. PROGRAM and CPA’s consistency with the A draft of an Energy and Mining law has been prepared and is currently in the environmental strategy and process of validation and approval. The new law proposal provides for priorities of the Host Country extensive financial incentives for the development of RE in Jordan: income tax About ¼ page holiday, duty free equipment imports, waiver of stamp duties, free use of public lands, and free cost of interconnecting to the electricity grid. The law also provides for the establishment of a Renewable Energy and Energy Efficiency Fund REEF for RE projects development through a performance based subsidies/grants. The program activity is consistent with the GoF strategy of RE development and will largely contribute to the fulfillment of its set objectives and targets. 29 A. DESCRIPTION OF THE FIRST PROJECT ACTIVITY – UNDER THE PROGRAM DETAILS OF FIRST CPA b. Name of the organization GAM c. Contact person Eng. Ahmad G. Alhyasat d. Contact Details +962 (6) 4765843 alhyasat@.a@ammancity.gov.jo alhyasat@yahoo.com h. Summary of experience Describe in not more than 5 lines The Municipality of Greater Amman is Governed by a special legislation and regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment of millions JD by 2025. i. Description of financing sources used by CPA (program The installed wind farm capacity has been estimated at 40 MW. The total funds/equity/debt/others) investment cost is around 72 M$. The financing scheme is to be determined at subsequent project’s development stage. DESCRIPTION OF PROJECT The proposed CPA consists of the investment in a wind farm that will displace ACTIVITY the current electricity used in GAM mainly for streets lighting. (policy, technology, other details) The project aims at the supply of the GAM from a clean and renewable energy (RE) source namely wind and thereby help reduce the level of carbon emissions associated with the use of the fossil fuels based grid electricity. The Government of Jordan GoJ has adopted a Renewable Energy strategy that sets a target of 7% of the country’s energy mix to come from renewable sources by 2015 and up to 10% by 2020. Most of the RE contribution is expected to come from wind farms. A draft of an Energy and Mining law has been prepared and is currently in the process of validation and approval. The new law proposal provides for extensive financial incentives for the development of RE in Jordan: income tax holiday, duty free equipment imports, waiver of stamp duties, free use of public lands, and free cost of interconnecting to the electricity grid. The law also provides for the establishment of a Renewable Energy and Energy Efficiency Fund REEF for RE projects development through a performance based subsidies/grants. LOCATION OF THE PROJECT The GoJ has identified favorable locations for renewable projects and has ACTIVITY designed specific sites for the development of some 600 MW wind based projects. The specific location of the project will be determined at a subsequent development phase of the project. Depending on financial and operating scheme, the project’s site could be proposed by private operators bidding for the development of GAM’s wind farm. 30 BASELINE SCENARIO must result in GHG emissions The electricity currently used by GAM is mostly generated in fossil fuels based being lower than “business-as- power plants feeding the Jordanian electricity grid. This electricity is thus usual� in the Host Country. At the associated with Green House Gases GHG emissions. PIN stage questions to be answered are at least: In the absence of the proposed CPA, GAM will continue to ensure its electricity  Which emissions are supply from the grid electricity. being reduced by the proposed CDM/JI The proposed CPA will help displace the use fossil fuels based grid electricity program? and thereby, reduce the corresponding emissions of GHG mostly CO2.  What would the future look like without the proposed CDM/JI program? About ½ - 1 page PROJECT SCENARIO The project scenario consists of the construction of a wind farm that will ensure all GAM electricity needs from wind source ensuring a sustainable clean and renewable energy supply. METHODOLOGY TO BE USED The approved consolidated CDM methodology ACM0002 is perfectly suited to the CDM development of the proposed project activity: STATUS OF PREPARATION The project is at the concept design stage EXPECTED START DATE OF The project activity will require two to three years preparation and construction PROJECT time period. Expected project’s start date: 2012 EXPECTED VOLUME OF CER/VER/ERU Parameter Unit Value (based on methodology above) GAM electricity bill M JD/year 6,5 Length of slighted streets km 633 Electricity unit price JD/kWh 0,051 GAM electricity consumption GWh/year 126,51 Installed capacity estimation MW 41,12 Grid emission factor t CO2/MWh 0,6128 Expected annual emissions reduction t CO2/year 77 526,00 Note that currently, not all street lighting in Amman is the responsibility of GAM. It is divided between GAM, the Ministry of Public Works and Housing and 31 JEPCO. According to the director of the lighting section in GAM, an agreement will be signed between GAM and the Ministry of Public Works and Housing to transfer the responsibility of some streets to GAM (270 km worth) and as a result GAM’s electricity bill will increase substantially. The above provisional value is based on the future GAM’s electricity bill for lighting after the transfer of the 270 km long streets 32 B. DESCRIPTION OF THE SECOND PROJECT ACTIVITY – UNDER THE PROGRAM DETAILS OF FIRST CPA b. Name of the organization Greater Amman Municipality (GAM) c. Contact person Eng. Ahmad G. Alhyasat d. Contact Details +962 (6) 4765843 alhyasat@.a@ammancity.gov.jo alhyasat@yahoo.com h. Summary of experience Describe in not more than 5 lines The Municipality of Greater Amman is Governed by a special legislation and regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment capital of millions JD by 2025. i. Description of financing sources used by CPA (program The total investment cost of the CPA is estimated at 5,7 M$ for the funds/equity/debt/others) households Incandescent Lamps replacement by CFLs. The estimation of the CPA investment cost is based on a preliminary project concept definition. A survey on the households lighting practices should be carried out for the project design and for the precise investment cost evaluation. Various financial schemes for the project implementation have been tested in many countries. They range from free CFL distribution to partial subsidy or full cost with payments through electricity bills or salary deductions, etc. The financing scheme is to be determined at subsequent project’s development stage. DESCRIPTION OF PROJECT ACTIVITY The proposed CPA aims at the extensive use of efficient lighting lamps in the (policy, technology, other details) Greater Amman Area (GAA). Various energy efficient lighting options exist: Compact Fluorescent Lamps (CFL) – Fluorescent tube lights, Electronic Ballasts, Light Emitting Diodes (LEDs), Street Lighting, etc. The proposed CPA consists of a large scale use of CFLs for households’ and buildings lighting in the GAA. The proposed CPA will help replace the current widely used non efficient Incandescent Lamps (IL) by CFLs. It will contribute to substantial electricity savings and thus will help reduce the emissions of Green House Gases (GHG) associated with fossil fuels electricity generation. Electricity use of lighting is estimated at 1 800 GWh/year representing more than 18% of the total electricity consumption in Jordan. Moreover, lighting contributes significantly to the power peak load resulting in additional investment requirements in the generation capacity to meet the electricity demand. It should be noted that the use of efficient lighting has a potential of 40% to 70% electricity savings 33 In fact most of the large scale efficient lighting projects are driven by the objective of addressing peak power shortages, load shedding, etc. The proposed program has a three fold benefit a) energy savings and reduced monthly electricity bills for the consumers ii) power peak demand reduction iii) reduction of the GHG emissions associated with the electricity generation. The proposed CPA aims at the replacement of 1,74 million IL with CFLs. The project is expected to reach a household penetration rate of 40% (8% a year) after five years operational period. The following table summarizes the planned replacement program targets at the end of the CPA deployment period. Lamps Number Baseline 15 W IL (households) 1 040 000 IL 60 W 20 W IL (households) 700 000 IL 100 W Total 1 740 000 Although the CPA scope has been determined on households penetration rate, the CPA targets also commercial and administrative buildings. The proposed CPA will support the GoJ objective for rational use of energy and the renewable energy development. In this regards, it is worth mentioning that a draft of an Energy and Mining law has been prepared and is currently in the process of validation and approval. The law provides for financial incentives for the development of RE in Jordan and for the establishment of a Renewable Energy and Energy Efficiency Fund REEF. As an energy efficiency project, the proposed CPA is eligible for CDM and could benefit from the REEF’s financial subsidies/grants. LOCATION OF THE PROJECT The proposed project is located throughout the Greater Amman Area ACTIVITY BASELINE SCENARIO must result in GHG emissions The current lighting practice is the incandescent lamps use by households being lower than “business-as- and in commercial and administrative buildings. The proposed CPA envisions usual� in the Host Country. At the the replacement of all IL by more energy efficient lamps namely CFLs. PIN stage questions to be answered are at least: In the absence of the project activity, lighting in the GAA will continue on the  Which emissions are same current inefficient lighting practice resulting thereby in increased being reduced by the electricity consumption and peak demand as well as GHG emissions that proposed CDM/JI could be prevented. program?  What would the future look like without the proposed CDM/JI program? About ½ - 1 page By promoting energy efficient lighting, the proposed CPA will help divert part PROJECT SCENARIO of the current electricity used for lighting to more productive uses contributing to the achievement of the GoJ goal of energy rational use. 34 METHODOLOGY TO BE USED Three approved methodologies could be used for the proposed CPA: 1) Large scale approved methodology AM0046 Applicability: For households lighting only; Replacement of incandescent lamps of 100 W or less by more efficient light bulbs. Recollection and distribution of the replaced light bulbs Implementation of a social lottery system among all households included in the baseline sample group (See details in the mythology Definition a Baseline Sample Group (BSG) and a Project Sampling Group (PSG) Spot checks for the monitoring of lighting habits of both the BSG et the PSG This implementation of this methodology is limited to households lighting and its application is complex. 2) Small scale approved methodology AMS-IIJ: demand side activities for efficient lighting Applicability: this methodology compromises project activities that lead to efficient use of electricity through the adoption of self-ballasted compact fluorescent lamps (CFLs) to replace incandescent lamps (ILs) in residential applications. Eligible self-ballasted CFLs have ballasts integrated to the lamp as a non-removable part. The CFLs adopted to replace existing equipment must be new equipment not transferred from another activity. This methodology is limited to the replacement of ILs by CFLs in residential applications. Moreover daily lighting are limited to 3,5 hours and with this methodology, Certified Emission Reductions can only be earned only for the rated lifetime (rated life to 50% failures) of project CFLs, not to exceed one crediting period of up to 10 years. 35 The monitoring is done by sampling. The size of the sample is determined by minimum 90% confidence interval and the 10% maximum error margin; the size of the sample shall be no less than 100 (See the methodology II-J for more details). This methodology is limited to households lightings and its imposes a high failure rate of 50% which reduces substantially the expected carbon credits of the project 3) Small scale approved methodology AMS-IIC: II.C. Demand-side energy efficiency activities for specific technologies This methodology comprises activities that encourage the adoption of energy- efficient equipment/appliance (e.g., lamps, ballasts, refrigerators, motors, fans, air conditioners, pumping systems) at many sites. These technologies may replace existing equipment or be installed at new sites. The methodology requires the metering the electricity consumption of an appropriate sample fixed randomly before project’s start. The monitoring should be carried out continuously for the reference sample during the complete crediting period. The last methodology ( AMS II C ) is more appropriate for the CPA activity. In fact the first CFL CDM program is based on this small scale methodology (Promotion of Energy-Efficient lighting using Compact Fluorescent Light Bulbs in rural areas in Senegal, CDM PoA under development) STATUS OF PREPARATION The project is at the concept design stage EXPECTED START DATE OF The project activity will require two years preparation for the financial and PROJECT operational scheme set up. Expected project’s start date: 2012 36 EXPECTED VOLUME OF The values assumed for the main parameters used for the CERs volumes CER/VER/ERU evaluation are summarized in the following table: (based on methodology above) Parameter Units Value Average number of 60 W Lamps Lamps/household 6 Average number of 100 W Lamps Lamps/household 4 Average daily hours use Hours 3 Total number of households in GAA 434 806 CFL yearly penetration rate % households/year 8% Targeted penetration rate % households 40% Adjustment savings factor For CFL component % 25% Emission factor t CO2/MWh 0,6128 The table below summarizes the results of the expected CERs evaluation. Year Households Year 1 10 328 Year 2 20 656 Year 3 30 985 Year 4 41 313 Year 5 51 641 After the fifth year, the ERs should be maintained at the 51 600 tC02 level provided that the lamps are replaced at the expiration of their life time or failure Besides the energy savings and GHG emissions reduction the CFL program will help offset around 38 MW of peak demand. . 37 C. DESCRIPTION OF THIRD PROJECT ACTIVITY – UNDER THE PROGRAM DETAILS OF FIRST CPA b. Name of the organization Greater Amman Municipality (GAM) c. Contact person Eng. Ahmad G. Alhyasat d. Contact Details +962 (6) 4765843 alhyasat@.a@ammancity.gov.jo alhyasat@yahoo.com h. Summary of experience Describe in not more than 5 lines The Municipality of Greater Amman is Governed by a special legislation and regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment capital of millions JD by 2025. i. Description of financing sources The total investment cost of the CPA is estimated at 9,15 M$ for the efficient used by CPA (program street lighting: replacement of Mercury Vapor Lamps (MVL) used for funds/equity/debt/others) secondary street lighting by High Pressure Sodium lamps (HPS). The financing scheme is to be determined at subsequent project’s development stage. DESCRIPTION OF PROJECT The proposed CPA aims at the systematic use of efficient lighting lamps in ACTIVITY the secondary streets of the Greater Amman Area (GAA). (policy, technology, other details) The proposed CPA will help replace the non efficient Mercury Vapor Lamps (MVL) widely used for secondary street lighting to High Pressure Sodium lamps (HPS). It will contribute to substantial electricity savings and thus will help reduce the emissions of Green House Gases (GHG) associated with fossil fuels electricity generation. Electricity use of lighting is estimated at 1 800 GWh/year representing more than 18% of the total electricity consumption in Jordan. Moreover, lighting contributes significantly to the power peak load resulting in additional investment requirements in the generation capacity to meet the electricity demand. It should be noted that the use of efficient lighting has a potential of 40% to 70% electricity savings In fact most of the large scale efficient lighting projects are driven by the objective of addressing peak power shortages, load shedding, etc. The proposed program has a three fold benefit a) energy savings and reduced monthly electricity bills for the consumers ii) power peak demand reduction iii) reduction of the GHG emissions associated with the electricity generation. The proposed CPA aims at the replacement of 100 000 Mercury lamps with HPS. Lamps Number Baseline 70 W HPS 100 000 Mercury 125 W 38 The proposed CPA will support of the GoJ for rational use of energy and the renewable energy development. In this regards, it is worth mentioning that a draft of an Energy and Mining law has been prepared and is currently in the process of validation and approval. The law provides for financial incentives for the development of RE in Jordan and for the establishment of a Renewable Energy and Energy Efficiency Fund REEF. As an energy efficiency project, the proposed CPA is eligible for CDM and could benefit from the REEF’s financial subsidies/grants. LOCATION OF THE PROJECT The proposed project is located throughout the Greater Amman Area ACTIVITY BASELINE SCENARIO must result in GHG emissions For street lighting, two type of lamps are currently used in GAA, namely HPS being lower than “business-as- (250 W and 400W) for large streets and tunnels and MVL (125 W) in usual� in the Host Country. At the secondary and small streets. The proposed CPA envisions the replacement PIN stage questions to be of all MVL by more energy efficient lamps namely HPS lamps. answered are at least:  Which emissions are In the absence of the project activity, lighting in the GAA will continue on the being reduced by the same current inefficient lighting practice resulting thereby in increased proposed CDM/JI electricity consumption and peak demand as well as GHG emissions that program? could be prevented.  What would the future look like without the proposed CDM/JI program? About ½ - 1 page By promoting energy efficient lighting, the proposed CPA will help divert part PROJECT SCENARIO of the current electricity used for lighting to more productive uses contributing to the achievement of the GoJ goal of energy rational use. METHODOLOGY TO BE USED Small scale approved methodology AMS-IIC: II.C. Demand-side energy efficiency activities for specific technologies, could be used for the proposed CPA: This methodology comprises activities that encourage the adoption of energy- efficient equipment/appliance (e.g., lamps, ballasts, refrigerators, motors, fans, air conditioners, pumping systems) at many sites. These technologies may replace existing equipment or be installed at new sites. The methodology requires the metering the electricity consumption of an appropriate sample fixed randomly before project’s start. The monitoring should be carried out continuously for the reference sample during the complete crediting period. 39 The last methodology ( AMS II C ) is more appropriate for the CPA activity. In fact the first CFL CDM program is based on this small scale methodology (Promotion of Energy-Efficient lighting using Compact Fluorescent Light Bulbs in rural areas in Senegal, CDM PoA under development) STATUS OF PREPARATION The project is at the concept design stage EXPECTED START DATE OF The project activity will require one year preparation for the financial and PROJECT operational scheme set up. One Expected project’s start date: 2011 EXPECTED VOLUME OF CER/VER/ERU The values assumed for the main parameters used for the CERs volumes (based on methodology above) evaluation are summarized in the following table: Street lighting Parameter Units cost Project developpement cost $ 100 000 HPS Number 100 000 Unit cost $ 90 Total Cost $ 9 000 000 Implementation cost $ 50 000 Sub total $ 9 150 000 The expected CERs have been evaluated at 11 500 tCO2/year. 40 D. DESCRIPTION OF THE FOURTH PROJECT ACTIVITY – UNDER THE PROGRAM DETAILS OF FIRST CPA b. Name of the organization Greater Amman Municipality (GAM) c. Contact person Eng. Ahmad G. Alhyasat d. Contact Details +962 (6) 4765843 alhyasat@.a@ammancity.gov.jo alhyasat@yahoo.com h. Summary of experience Describe in not more than 5 lines The Municipality of Greater Amman is Governed by a special legislation and regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment capital of millions JD by 2025. i. Description of financing sources used by CPA (program The total investment cost of the CPA is estimated at 43 M$ for the installation funds/equity/debt/others) of 42 500 Solar Water Heaters SWH over five years The estimation of the CPA investment cost is based on a preliminary project concept definition. A survey on the households’ water heating practices should be carried out for the project design and for the precise investment cost evaluation. Various financial schemes for the project implementation have been tested in many countries. They comprise direct subsidies, soft loans, re-payments schemes, leasing or rental programs, etc. The CPA’s financing scheme is to be determined at subsequent project’s development stage. DESCRIPTION OF PROJECT ACTIVITY Jordan enjoys a high potential of solar energy (5.6 kWh/ m2.day) and solar (policy, technology, other details) applications are very common: water heating, space heating, crop and vegetable drying. It is estimated that about 15% of households in Jordan use SWH as the main energy source for water heating. According to the National Energy Renewable Centre (NERC), there are over 30 local manufacturers of solar collectors in Jordan, most of them located in Amman. However, only two of these manufacturers produce collectors in accordance with the RSS design criteria. The annual production rate is around 4,000 units. Solar collectors are also imported mainly from Turkey and Europe. Despite the existence of a local SWH industry and the current fair penetration rate, the potential of solar energy is still underexploited. This could be explained by the various regulatory, technical, financial and commercial barriers the large scale deployment of SWH is facing. 41 The proposed CPA aims at the wide spread use of SWH for households in the Greater Amman Area (GAA). The CPA implementation will help achieve the Energy Strategy target to improve the current penetration rate of SWH in Jordan from 15% to 25% by 2015. A total of 42 000 household SWH should be installed in five years period representing a total of 107 000 m2. The total installed capacity is estimated at 70 MW peak. With the CPA implemented it is expected that the penetration rate will reach 25% in the GAA by the end of the program achieving thereby the objective of the Jordan Energy Strategy for the solar water heating systems. A diagnosis of the current SWH market will be carried out for the CPA concept design to better assess the demand and help identify the barriers to the widespread of SWH in Jordan. The CPA concept will integrate the solutions to the identified barriers as well as lessons learned from SWH programs’ implementation in others countries. LOCATION OF THE PROJECT The proposed project is located throughout the Greater Amman Area ACTIVITY BASELINE SCENARIO must result in GHG emissions The current practice of the water heating in Jordan is dominated by fossil being lower than “business-as- fuels based system (gas and kerosene/Diesel) and accessorily electricity. usual� in the Host Country. At the PIN stage questions to be In the absence of the project activity, the demand for SWH will still be modest answered are at least: and most solar water heating systems will continue using mostly fossil fuel  Which emissions are and thus generating GHG emissions that could be prevented. being reduced by the proposed CDM/JI For the ERs evaluation it is assumed that only 20% of the envisioned SWH program? would have been installed in the absence of the CPA.  What would the future look like without the proposed CDM/JI program? About ½ - 1 page By promoting solar energy, the proposed CPA will help divert part of the PROJECT SCENARIO current fossil fuels and electricity used for households’ water heating to more productive uses contributing to the achievement of the GoJ of Renewable Energy development goal. The small scale methodology AMS I.C : thermal energy for the user, is METHODOLOGY TO BE USED perfectly suited for the proposed CPA. This methodology comprises renewable energy technologies that supply users with thermal energy that displaces fossil fuel use. These units include technologies such as solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass and other technologies that provide thermal energy that displaces fossil fuel. Note that this methodology is valid for individual CPAs in the limit of 64 000 m2 of total collectors surface. To avoid using a more complex large scale approved methodology, it is recommended to carry out the SWH program in two separate zones of the GAA define accordingly two independent SWH CPAs for the PoA. 42 STATUS OF PREPARATION The project is at the concept design stage EXPECTED START DATE OF The project activity will require 18 months preparation for the financial and PROJECT operational scheme set up. Expected project’s start date: Mid 2011 EXPECTED VOLUME OF CER/VER/ERU The values assumed for the main parameters used for the CERs volumes (based on methodology above) evaluation are summarized in the following table: Parameter Unit Value Installation rate Units/year 8 500 Program implementation period years 5,0 Solar Unit used Person per household 5,0 Water requirement l/day 250,0 Water temperature °C 60,0 Panel surface m2 2,5 Capacity kW 1,6 Cost $/m2 400,0 Increase rate without CPA Units/year 1 700 Energy currently used for water heating Solar % 15% Electricity % 20% Gas or kerosene/diesel % 65% The table below summarizes the results of the expected CERs evaluation. ER tCO2 Year Additional SWH program Without CPA due to the CPA Year 1 10 200 2 040 8 160 Year 2 17 425 3 485 13 940 Year 3 24 650 4 930 19 720 Year 4 31 875 6 375 25 500 Year 5 39 100 7 820 31 280 After the fifth year the ERs should reach a level of 31 800 tC02 level. 43 E. DESCRIPTION OF THE FIFTH PROJECT ACTIVITY – UNDER THE PROGRAM DETAILS OF FIRST CPA b. Name of the organization Greater Amman Municipality (GAM) c. Contact person Eng. Ahmad G. Alhyasat d. Contact Details +962 (6) 4765843 alhyasat@.a@ammancity.gov.jo alhyasat@yahoo.com h. Summary of experience Describe in not more than 5 lines The Municipality of Greater Amman is Governed by a special legislation and regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment capital of millions JD by 2025. i. Description of financing sources used by CPA (program The total investment cost of the CPA is estimated at 45,4 M$ for the funds/equity/debt/others) establishment of a new slaughter house facility servicing the greater Amman area including Al-Russayfeh and Al-Zarqa. The estimation of the CPA investment cost is based on the project’s feasibility study dated March 2009. The project is to be implemented on a DBOT basis over a 25 period. An international bid will be issued by GAM for the selection of an investor to undertake the tasks of designing, building and operating the new slaughterhouse on a plot of land granted by GAM. The proposed sources of the project’s financing are as follows: Amount Amount Source in ‘000 JD in ‘000 $ Total equity DBOT partner 6 500 9 183 Grant by GAM 10 000 14 128 Total long-term loans 15 610 22 054 Total 31 110 45 365 DESCRIPTION OF PROJECT GAM has decided to establish a new slaughter house servicing the greater ACTIVITY Amman area including Al-Russayfeh and Al-Zarqa. The project aims at the (policy, technology, other details) development of a new modern slaughterhouse facility in accordance with national and international technical and hygiene standards. The project is to be implemented in partnership with a private operator on a DBOT basis. The qualified investor will take in charge the design, building and operating of the new facility for 25 years. The project site has been selected and the land plot will be granted by GAM. 44 The project’s feasibility study has been done and the EIA of the project is underway. The new facility will provide for slaughtering services, slaughtering inspection services, meat inspection, sales of by-products (hearts, livers, skins etc.) storage services, freezing store services, biogas capture and electricity generation as well as waste water treatment and water reuse for irrigation. The new slaughter house facility will be designed to handle, at full capacity, 41 600 cattle/camels, 624 000 sheep/goats and 12 480 000 birds per annum. LOCATION OF THE PROJECT The proposed project is located 5 km south of Amman near the power ACTIVITY station. BASELINE SCENARIO must result in GHG emissions The new slaughterhouse facility is to be equipped with a biological waste being lower than “business-as- water treatment plant. Biogas generated from the anaerobic treatment of the usual� in the Host Country. At the charged wastewater will be captured and use for electricity generation. PIN stage questions to be answered are at least: The electricity produced will be used directly in the slaughter house providing  Which emissions are for around 60% of the facility electricity needs (see project’s feasibility study). being reduced by the proposed CDM/JI In the absence of the proposed CPA, the biogas will be emitted to the program? atmosphere and the slaughter house will ensure its electricity supply from the grid electricity.  What would the future look like without the According to the project’s feasibility study, at full capacity, an estimated 6 263 proposed CDM/JI MWh a year will be generated from the captured biogas. program? About ½ - 1 page PROJECT SCENARIO The project scenario consists of the construction of a slaughter house facility with a waste water treatment plant, the capture of the biogas associated with the treatment plant and electricity generation. By using a renewable source namely biogas, the proposed CPA will help divert part of the electricity that will be used in the slaughter house facility to more productive uses contributing to GHG emissions reduction and to the achievement of the GoJ goal of Renewable Energy development. Note that the new slaughter house project might offer other CDM opportunities (solid waste treatment (already done in Ruseifeh landfill), process energy efficiency, waste water treatment, etc. However, the establishment of the baseline emissions of these projects should be hard to justify. METHODOLOGY TO BE USED The approved small scale methodology: AMS I.D : Grid connected renewable electricity generation, is perfectly suited for the activity. This methodology comprises renewable energy generation units, such as photovoltaics, hydro, tidal/wave, wind, geothermal and renewable biomass, that supply electricity to and/or displace electricity from an electricity distribution system that is or would have been supplied by at least one fossil fuel fired generating unit. 45 STATUS OF PREPARATION The project’s feasibility study has been done. The EIA is underway and the DBOT bidding process has been launched. EXPECTED START DATE OF The project activity will require two years construction period. PROJECT Expected project’s start date: 2012 EXPECTED VOLUME OF CER/VER/ERU The expected ERs production schedule is presented in the following table: (based on methodology above) Year % capacity MWh/a tCO2/year 1 63% 3 966 2 430 2 67% 4 189 2 567 3 71% 4 424 2 711 4 75% 4 673 2 864 5 79% 4 936 3 025 6 83% 5 214 3 195 7 88% 5 508 3 375 Subtotal 1 20 168 8 93% 5 819 3 566 9 98% 6 146 3 766 10 104% 6 494 3 979 11 110% 6 861 4 204 12 116% 7 249 4 442 13 122% 7 659 4 693 14 129% 8 092 4 959 Subtotal 2 29 610 15 137% 8 551 5 240 16 144% 9 019 5 527 17 152% 9 520 5 834 18 161% 10 084 6 180 19 170% 10 648 6 525 20 180% 11 274 6 909 21 190% 11 900 7 293 Subtotal 3 43 507 TOTAL 152 228 93 285 The above yearly production capacity and electricity generation has been established by the project’s feasibility study. The resulting average yearly CERs over the crediting period is evaluated at 4 442 t CO2/year. 46 F. DESCRIPTION OF THE SIXTH PROJECT ACTIVITY – UNDER THE PROGRAM DETAILS OF FIRST CPA b. Name of the organization GAM c. Contact person Dr. Ayman Smadi Transportation and Traffic Management Director d. Contact Details Mobile: +962-799049808 Fax/ +962-64765829 Ayman.smadi@ammancity.gov.jo h. Summary of experience The Municipality of Greater Amman is Governed by a special legislation and Describe in not more than 5 lines regulations; its City Council is composed of 68 members, working within 14 committees, and headed by the Mayor of Amman. It serves around 40% of Jordan population (2.3 millions) and its mandate extends on some 1700 km2. GAM has developed recently an ambitious Master Development plan based on an innovative approach to metropolitan, urban and community planning. The Amman Plan is being developed in seven planning phases covering a metropolitan growth plan, a transportation and transit plan, an integrated servicing infrastructure plan etc. Over all the Amman development plan implementation calls for an estimated investment of millions JD by 2025. i. Description of financing sources used by CPA (program The total investment cost of the transport optimization program is estimated as funds/equity/debt/others) follows: Phase Activity Cost in M$ BRT 220 Phase I Rail 1 200 Terminals 70 BRT 145 Phase II Rail 900 Terminals 80 TOTAL 2 615 Phase I: 2010-2015 Phase II: 2015-2025 The financing scheme is to be determined at subsequent project’s development stage. The proposed CPA consists of the implementation of a comprehensive DESCRIPTION OF PROJECT transport optimization action plan for the GAA calling for the increase of ACTIVITY (policy, technology, other details) the public transport mode from the current 18% to 40% by 2025. Besides comprehensive transport policies, the action plan envisions the deployment of a Bus Rapid Transit system (BRT), a Rail Road Transit system (RRT) and the use of Compressed Natural Gas (CNG) for vehicles. Fuel switch to CNG is planned for GAM fleet comprising 25 000 Vehicles and Taxis. LOCATION OF THE PROJECT ACTIVITY The proposed CPA is located in the GAA. 47 BASELINE SCENARIO must result in GHG emissions Amman is a growing city with an estimated population of 2,3 millions. The rapid being lower than “business-as- population growth is expected to continue with GAA population reaching 6,4 usual� in the Host Country. At the millions by 2025. PIN stage questions to be answered are at least: The cars park in Jordan is growing at an estimated average of 10%. Most  Which emissions are Amman inhabitants use their cars for transportation. The following table being reduced by the presents the transport repartition mode in Amman city: proposed CDM/JI program? Transport mode %  What would the future Private car 53% look like without the Bus or minibus 18% proposed CDM/JI Walking 10% program? Other modes 19% About ½ - 1 page Source: GAM, transport Department, 2007 In the absence of the proposed CPA, most of Amman inhabitants will continue to use their cars due to current deficit and poor quality of public transportation system. According to GAM, public transport in Amman is underdeveloped, unreliable and lacks a well structured hierarchy of transportations modes and services. The proposed CPA will provide a high quality public transport service and increase the share of passengers using public transport system. The CPA will thus help reduce the fuel intensity for transport. The CPA will also help switch utilities vehicles (buses and taxis) from gasoline and diesel to a more environmentally friendly fuel namely natural gas. The use of NCV will reduce the emission of GHG mostly CO2. PROJECT SCENARIO The project scenario consists of the implementation an optimal transport system based on: Bus Rapid Transit system (BRT), Rail Road Transit system (RRT) and Use of Compressed Natural Gas for vehicles METHODOLOGY TO BE USED The approved CDM methodology AM0031 is suited to the development of the BRT component of the proposed CPA. For the Natural Gas Vehicles (NGV), the small scale approved methodology AMS III.C, can be used: Emission reductions by low-greenhouse gas emitting vehicles 48 As for the railway component of the project, a new methodology is under validation: NM0258 (variation of AM0031 and NM0266 for Railway Rapid Transit Projects): STATUS OF PREPARATION The project is at the concept design stage – A detailed project’s feasibility study has been initiated EXPECTED START DATE OF A two years period is required for the CPAs preparation and the program PROJECT registration Preparation period: 2010-2011 The transport CPA will be carried out in two phases: Phase 1: 2010-2015 : BRT 30 km three routes ; 20 km rail and Intermodal and gateway terminals Phase 2: 2015-2025: BRT 20 km three routes; 20 km rail, gateway terminals and Park and Ride facilities. Expected project’s start date: 2012 EXPECTED VOLUME OF CER/VER/ERU The CERs estimation based on the following assumptions and on the objective (based on methodology above) of reaching a 40% of Amman passengers using public transport in 2025 and the conversation of 25 000 utility vehicles to natural gas is presented below: Parameter Unit Value BRT/RRT Number of vehicles a day 350 000 Increase rate % 5% Average number of persons per car 1,3 Average distance km/day 40 Average fuel consumption l/km 0,1 Fuel consumption liters/day 1 400 000 People taking public transportation % 18% Increase rate % 5% Target public transportation by 2025 % 40% Natural Gas Vehicles Number of concerned vehicles 25 000 Average fuel consumption l/km 0,12 Average distance km/j 120 ER estimated rate % 15% 49 ER tCO2 Year BRT/RRT NGV Total 2012 43 300 10 000 53 300 2013 90 900 20 100 111 000 2014 143 200 30 100 173 300 2015 225 500 40 200 265 700 2016 296 000 50 200 346 200 2017 373 000 50 200 423 200 2018 457 000 50 200 507 200 2020 548 400 50 200 598 600 2021 679 800 50 200 730 000 2022 755 700 50 200 805 900 TOTAL 3 612 800 401 600 4 014 400 The expected CERs annual average over the first ten years is around 401 400 t CO2/year. The above CERs estimation is based on preliminary assumptions that should be refined once the project feasibility study has been done and the precise CPA concept has been fully determined. 50 Annexes 51 Annex A Terms of reference 52 MNA Region - Carbon Finance Assist Program Support to the development of CDM activities in Jordan Terms of Reference for a CDM Consultant MNA Region - Carbon Finance Assist Program Support to the development of a city wide CDM program for Greater Amman Municipality Terms of Reference for a CDM Consultant I. INTRODUCTION 2. The Kyoto Protocol (KP) to the UN Framework Convention on Climate Change (UNFCCC) was agreed upon in December 1997. The Protocol commits industrialized (“Annex I�) countries to reduce their carbon emissions by an average of 5.2 percent below 1990 levels in the first commitment period (2008-2012). To meet these commitments in the most cost-effective manner, the Protocol’s Article 12 established the enabling industrialized countries to receive credits for financing emission reductions (ERs) projects in developing (host) countries. While host countries have no commitments or emission reduction targets under the Protocol, they can benefit from activities under the Clean Development Mechanism (CDM), so that they could maximize their sustainable development gains along with global environmental benefits. 3. CF-Assist is a capacity building and technical assistance program established by the World Bank in fiscal year 2005 to enable the full engagement of developing countries and economies in transition in the carbon market so that they could maximize their sustainable development gains along with global environmental benefits. 4. In this context, the World Bank Institute (WBI), responsible of managing this program, has allocated resources and a budget to be used for CF-Assist activities in Jordan. Following discussions between the World Bank and Greater Amman Municipality (GAM) management, GAM requested technical assistance in assessing CDM opportunities in potential sectors in Amman municipality, to enable the City to participate in the carbon market and benefit from CDM on a City wide approach. 5. Jordan ratified the Kyoto Protocol on January 17, 2003. The programmatic approach to the CDM is a relevant tool which could generate additional financial resources for the implementation of programs under national policies such as Municipal Services areas. 6. The World Bank is hereby seeking consulting services to support GAM in identifying and assessing potential sectors and quantifying the ERs potential, for developing city wide CDM program. To this end, the present Terms References (ToRs) detail the scope of work of the required consulting services for this assignment. II. OBJECTIVES: 7. The objective of the proposed technical assistance is to assist the Greater Amman Municipality (GAM) in assessing and identifying the potential sectors for developing programmatic CDM activities in municipal services sectors managed by Amman Municipality. More specifically, the proposed assignment will include (i) the assessment and validation of the feasibility of a city wide CDM programmatic project for potential municipal services offered by the Greater Amman Municipality, based on set of criteria to be prepared by the Consultant, including but not limited to readiness of GAM to implement, financing availability, approved methodology, etc. The sectors to be assessed are renewable energy (solar, wind), energy efficiency, wastewater, municipal solid waste and transport 53 sectors; (ii) Identification of the potential projects/programs in each sector and estimating the emission reduction potential from those project activities and sectors; and (iii) the elaboration of city wide CDM Idea Note (PIN) for the selected potential CPAs. PIN template is attached (Annex 1). 8. The Program Idea Note (PIN) is the first step in the design of the Program of Activities (PoA) 3 leading to the preparation of a CDM PoA-DD and a CDM CPA-DD which will be submitted for validation and registration. 9. When preparing the PIN the consultant should refer to the guidance provided by the CDM 4 Executive Board (EB) at its forty-seventh meeting for PoA and activities under PoA (CPAs) and any other further relevant EB guidance on PoAs. III. TASKS: 10. Consistent with the above objectives, the assignment comprises of two main tasks for the consultant, which will include, but not limited to: 11. Development of a set of criteria for assessment of projects for further development. Criteria include but are not limited to readiness of GAM to implement, financing availability, approved methodology, expected implementation / construction / operation date, etc. 12. Assessment of the Greater Amman Municipality services and investment plans for the feasibility of a city wide CDM program, based on the criteria defined above. 13. Assessment of renewable energy (solar, wind), energy efficiency, wastewater, and transport sectors. Identify sectors and projects with CDM potential and develop a pipeline of CPAs (CDM project activities) based on Program of Activities (POA) approach. 14. Based on the pipeline developed and identified, determine the most eligible (prioritize) CDM project activities that can be considered potential candidate and prepare a list of data / information / checklist that needs to be prepared and provided by GAM, which should include but not limited to the scope and the objectives of the CPA; the cost estimate and financing scheme, implementation schedule, the institutional arrangements and implementing entities etc. in order to validate the feasibility of the proposed CPAs. 15. Validate the selected potential CPAs, and elaborate the Program Idea Note (PIN) : 3- Collect relevant information for the preparation of the Program Idea Note (PIN) and the individual CPAs. 4- Liaise with other consultants (legal, technical, environmental, etc.) recruited by the Greater Amman Municipality for the preparation of this Municipal Services PoA and take into account, whenever relevant, the findings of their respective due diligence. 5- Determine a likely scenario for the portfolio of projects (CPAs) that will be included in this City wide PoAs and estimate the total amount of Emission Reductions (ERs) generated from each CPA. 6- Provide a preliminary analysis of baseline and additionality. 4 The latest version of the templates for CDM-PoA-DD and CDM-CPA-DD are available on the UNFCCC CDM website in the reference/documents section. 4 EB47, Annex 29 54 7- Based on the information collected from GAM, consistent with the agreed scenario for the portfolio of projects, prepare a financial analysis required for the POA and the CPAs using the format prescribed by the World Bank. 8- Prepare a brief summary of the major environmental and socio-economic benefits (local and global) expected from the POA and CPAs. 9- Complete the PIN sections as needed. 16. To achieve the tasks stated above the consultant will undertake one or two country missions to Amman as needed between January 15, 2009 and August 15, 2009 in order to meet with the Greater Amman Municipality and other concerned Jordan stakeholders (the Ministry of Environment, the Ministry of Energy and Mineral Resources, Electricity generation and distribution utilities, etc.) to collect information needed for completion of the assignment. IV. WORK ORGANISATION & REPORTING 13. The Consultant will report to the MNA-Regional Carbon Finance Team at the World Bank, coordinated by xxxxx. He/she will work closely with the Greater Amman Municipality and others local/national concerned institutions in Jordan as needed. 14. Under the proposed assignment, the consultant will prepare and submit the following documents: a) List of criteria. b) Concise report comprising list of the entire pipeline across sectors, all possible projects (CPAs) identified in the city with assessment based on the criteria, and list of the priority projects. c) Draft version of the PIN with a 1 pager for each of the identified / selected CDM project activities (CPAs) no later than 6 weeks after the signature of his/her contract. d) Final version of the PIN (including Financial Analysis Tables for each of the CPAs for which the needed financial data is available) and implementation schedule, two weeks after receiving comments from the Greater Amman Municipality and the Bank. e) Two copies of the completion reports summarizing the key results and findings of the provided TA as well as recommendations for the preparation of further steps towards the preparation of the POA and CPAs. 15. All documents should be produced in English and submitted electronically (word and excel documents) and in hard copy. V. REQUIRED QUALIFICATIONS 16. The required main qualifications of the individual consultant are: a) Formal educational background in a directly related technical field as an engineer or minimum master’s level of education. b) At least 5 years diversified work experience in CDM project development, at least covering renewable energy, energy efficiency and wastewater sectors, excellent knowledge of CDM program of activities is a plus. c) Fluency in English required with excellent written and oral communication skills. Knowledge of Arabic will be an asset. 55 VI LEVEL OF EFFORT 17. The proposed assignment is expected to require 35 days of full-time work for the completion of activities including two one week missions in Amman City . 18. The proposed assignment is expected to be carried between January 15 2009 and September 30, 2009. VII. DOCUMENTS TO BE PROVIDED BY THE WORLD BANK 1. Updated PIN template, including guidance on city-wide approach. 2. Latest EB guidance on POAs. 3. Financial analysis template. 56 Annex B List of consulted Documents 57 List of Consulted Documents 1- Amman Master Development Plan, GAM, 2008. 2- Amman Ghabawi Landfill Gas to Energy Project, GAM, Version 3, June 4, 2009. 3- Department of Statistics (Jordan), www.dos.gov.jo, 2009. 4- Ministry of Energy and Mineral Resources annual report 2008; www.memr.gov.jo 5- Ministry of Transport (Jordan) www.mot.gov.jo, 2009 6- Electricity Sector in Jordan and Present & Future, National Electric Power Company, April 2009. 7- Promotion of a Wind Power Market Project, Project Appraisal Document, World Bank, May 29, 2008. 8- Proposal for Implementing Residential and Street Lighting Pilot Project, National Energy Research Center, GAM, June 2008. 9- New Slaughterhouse Feasibility Study, Greater Amman, Zarqa, Al Rusaifeh Municipalities, Food Consult AG, March 2009. 10-Summary Updated Strategy of Energy Sector in Jordan for the period (2007- 2020), December 2007. 11-Policies to Reduce Emissions from the Transportation Sector; Pew Center on Global Climate Change, Fall 2008. 12-An action Plan for Transport in Amman, Transportation Planning Department , GAM- 2009. 58 Annex C List of people met/interviewed 59 Mission I: period: April 15 to April 21, 2009 Name Title Institution Mr. Ammar Amman City manager GAM Gharaybah Mr. Bashar Haddaden Director Special Projects & Investments GAM Department Eng. Ahmad G. Project Manager Amman solid Waste GAM Alhyasat Management Dr. Ayman Smadi Transportation and Traffic Management GAM Director Eng. Hussein Badarin Director of Monitoring and Assessment Ministry of – CDM EB member Environment Hatem Ababneh Plant Manager Jordan Biogas Company Lmt. Eng. Meqdad Rababaa Senior technical engineering consultant GAM Eng. Mohammad Electrical Engineer GAM Doroubi Eng. Ahmed Development Coordinator GAM Ghabashneh 60 Mission II: July 3rd to July 10th, 2009 Name Title Institution Director Special Projects & Investments Mr. Bashar Haddaden GAM Department Eng. Ahmad G. Project Manager Amman solid Waste GAM Alhyasat Management Transportation and Traffic Management Dr. Ayman Smadi GAM Director Director of Monitoring and Assessment Ministry of Eng. Hussein Badarin – CDM EB member Environment Nisreen Al Anaj Slaughter house project manager GAM. Eng. Lana Al-Zubi Environment specialist GAM Gerry Post Director Amman Institute Lead Urban Advisor Sustainable Cities Daniel Hoornweg World Bank Urban Development Director of Environment Research Royal Scientific Dr. Bassam O.Hayek Centre Society RSS National Energy Head of Rational use of Energy and Walid R. Shahin Research Center; Solar Thermal division NERC Environmental Rafat Assi Research Centre at RSS Eng. Faysal Anani Head of Air Quality Studies Division RSS Technical Manager for Planning and The Jordanian Electric Eng. Saleh Massad Studies Power Co. ltd. JEPCO Eng. Anwar A. The Jordanian Electric Head of Planning Department Ellayan Power Co. ltd. JEPCO Director of Alternative Energy and Ministry of Energy and Eng. Ziad Jibril Sabra Energy efficiency Department Mineral Resources Ministry of Energy and Eng. Mahmoud Al-Aes Director of Planning Department Mineral Resources Eng. Marwan Metry Ministry of Energy and Director of Natural Gas Department Al-Baka’in Mineral Resources Jordan Water Company Eng. Jiries Dababneh Technical Director Miyahuna Eng. Mohammed A. Head of the Waste Water Treatment Jordan Water Company Al-Kharabsheh Plants Section Miyahuna Dr. Ahmad Abdel- Eco Consult Fattah Eng. Lina Sheqem Eco Consult 61 Annex D Workshop presentations 62 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. IPCC Fourth Assessment The Greenhouse effect Report (2007) Climate Change, The Kyoto Protocol Earth climate is and Clean Development Mechanism warming and human activities are the (CDM) primary cause (90%) • CO2 is the most important CDM Workshop anthropogenic greenhouse gas, its global atmospheric Amman, Jordan concentration has increased from a value of 280 ppm to 379 ppm in 2005. April 21, 2009 • 6 GHGs: CO2, CH4, N2O, HFCs, PFCs, SF6 Climate change impacts International response to Climate Change Climate Change: Whose problem is it? The UNFCCC (RIO Summit 1992) • Ultimate objective of stabilizing global greenhouse gas concentrations in the atmosphere • Principal of “Common but differentiated responsibilities�: – – Historical emissions of industrialized countries and – – Current global emissions (from industrialized and developing countries) cause global warming • Support capacity building in, and facilitate technology transfer to developing countries to mitigate, and to adapt to climate change • Meet as a “Conference of Parties� in the future, consider progress Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. International response to Climate Change Main Greenhouse Gases How can Developed Countries meet their The Kyoto Protocol obligations under Kyoto? The Protocol’s emissions targets cover the six main greenhouse gases [Global Warming Potential]: • 36 Developed Countries and Economies in • Domestic Reductions Transition agreed in 1997 to: •Carbon dioxide (CO2) [1] • International Credits (Kyoto Mechanisms): reduce GHG emissions by 5.2 % below •Methane (CH4) [21] – International Emissions Trading 1990 levels in the commitment period 2008- •Nitrous oxide (N2O) [310] – Project –Based: Joint Implementation 2012 •Hydrofluorocarbons (HFCs) [140-11,700] – Project – Based: Clean Development Mechanism •Perfluorocarbons (PFCs) [6,500-9,200] •Sulphur hexafluoride (SF6) [23,900] Supplementarity: “..domestic action shall constitute a • The PK came into force in February 2005 significant element of the effort by each Party..� • 184 states ratified 1 ton of CO2 reduction = 1 ERU or CER For example: Reducing 1 ton of CH4 = Reducing 21 ton of CO2 • US did not ratify yet 1 ton of CH4 = 21 ERUs or CERs Flexibility Mechanisms of KP How the CDM works (I) How the CDM works (I) • As it does not matter to the climate where emission reductions are achieved, sound economics argues for achieving them where they are least costly GHG Reduced GHGs in a Non–Annex I country can be sold Non– Reductions to an Annex I country I II III III I I I- Emissions Trading s Emiss ion II- Joint Baselin e Implementation Emission III- Clean Development Reductions Mechanism (CDM) Annex I Assigns Non-Annex I GHG emission targets to Annex I countries Project Emissions between 2008 and 2012 time Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Implementing the CDM in CDM and its objectives host countries • More cost-effective emission abatement; Pre-conditions: • Ratification of Kyoto Protocol • Contribution to sustainable development in host countries: • Establishment of Designated National Authority (DNA) CDM Project Cycle A CDM project needs to: – Environmental (e.g. air quality) and health benefits – Access to clean technologies • Be voluntary and approved by involved parties – Improved energy efficiency and reduced dependence on • Meet national criteria for Sustainable Development (for Letter imported fuel of Approval) – Infrastructure improvements • Have long-term measurable benefits and emission reductions – Increased employment • Meet the criteria of the CDM Executive Board – Revenues from credits – Validation, Registration, Monitoring & Verification,… – Mitigation of climate change CDM project cycle steps Pre-Implementation Steps Post-Implementation Steps CDM project cycles involves activities split into: 1- Project design Project developer Project developer 4- Monitoring & formulation Monitoring Pre-project implementation actions (one time): PIN/PDD report 1. Project Design (Project Developer). 2. Project Validation (DOE). 3. Project Registration (EB). 2- National approval DNA 5- Verification & Operational Entity certification Post-project implementation actions (Repeated): Verification report 1. Project Monitoring (Project Developer or Third Party). Certification report 2. Verification and Certification (DOE). Request for CERs 3- validation & Operational Entity 6- Issuance of CERs 3. Issuance (EB). Registration EB/ Registry EB/ Registry Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Prepare a Project Design Document : Validation/Registration National Approval vReview of the project (PDD, feedback from NGOS and üBaseline Methodology local Communities, etc.) by an accredited DOE v Screening the projects (in a transparent üDuration of the Project Activity chosen by the project participants manner) to assess their effectiveness in üMonitoring Methodology and Plan meeting SD criteria vDOE to receive written approval form the DNA of the üCalculation of GHG emissions voluntary participation in the project + Contribution to v DNA è rapid and transparent procedures SD üEnvironmental Impacts to evaluate and approve projects vDOE è forward to the Executive Board for formal üStakeholder Comments registration vDOE to make the validation report publicly available Monitoring Verification/Certification J Verification è Independent process ü A Monitoring methodology/plan is included in the PDD (transparent, reliable, relevant) monitoring reports to be submitted to a DOE : o Periodic auditing of the monitoring results ü Monitoring : systematic surveillance of the project performance o Assessment of the emission reductions o Conformance with monitoring plan ü Monitoring reports (applying the method. o Conformance of the CERs occurrence with the above) to be prepared by the project conditions specified by the validated project participants : project performance (GHG emission reduction, Leakage) o DOE to forward certification decision to Project participants, Parties involved, EB, and to make the $$$ Certification Decision publicly available Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. CDM Update : UNFCCC CDM Update : UNFCCC It’s a long process but it works Market Value Growth 2007 Evolution of the overall Carbon market (in MUS$) in billions of $ Project-Based Allowance Markets Transactions x 3.5 116 xx1.3 1.3 JI 500 Thank you EU Emission x 12 CDM Trading Scheme 64 alahbabi@menara.ma Secondary 7,400 CDM 50,100 5,500 30 x2 11 Voluntary New South Wales & Retail Certificates Chicago Climate 270 2005 2006 2007 2008 220 Exchange x4 x1 x2 70 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Benefits of CDM Requirements for CDM ü GHG emission reductions in real and measurable a) CDM: a mechanism to monetize environmental manner benefits of clean technologies and processes. ü Contribution to the sustainable development of the host CDM in Practice b) CDM thus provides additional revenues to clean projects. country CDM Workshop ü Additionality: the project proponent should demonstrate c) In addition, CDM registration often helps with that the project cannot be implemented without the CDM Amman, Jordan status and revenues. Otherwise the project will be part of financing. A project is more attractive to equity and debt investors with CDM status. the Business-As-Usual: BAU scenario April 21, 2009 ü The project should be developed according to the methodologies and procedures approved by the CDM EB. 1 2 Types of CDM Projects Costs and Benefits ü Renewable Energy Projects Costs ü Energy Efficiency Improvement Projects 1. Additional costs for the implementation Benefits ü • Other Project Activities Agriculture 2. Fees for, professional and registration etc 1. Fight against the global warming Renewable Energy • Switching fossil fuels 3. Timely process Sources 2. Preserving natural • Emission reductions by low-greenhouse gas emitting vehicles 4. Risks resources • Methane recovery 3. CER revenue • Methane avoidance 4. Promote clean • Land Use and Land Use Change, Forestry (LULUCF), etc. technologies and processes 3 4 1 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. What is renewable energy? Renewable energy projects Wind Power under the CDM ü Renewable energy: Energy derived from üWHY? sources that are regenerative or for all practical purposes can not be depleted. By generating thermal or electric energy with renewable sources we reduce the ü Project type: Construction of new or rehabilitation GHG emissions associated with fossil of existing RE based power generation units. fuels combustion for energy generation. ü Examples: ü Example: Replacing a 15 MW coal fired TPP that Solar Energy Wind Energy emitted 98,000 tCO2/year and by a new Wind Farm, Hydro Energy Geothermal will reduce the GHG emissions by 98,000 tCO2 Biomass 6 7 8 Wind Power Example Project: Zafarana Wind Farm (Egypt) Description: Construction of 120 MW wind farm Fuel switch and Annual generation: 452 016 MWh/yr Cogeneration Methodology: ACM-0002. Expected CER: 248 016 tCO2 / Year Registered June 22, 2007 under N°0740 9 10 2 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Fuel Switch and Cogeneration EXAMPLE • Fuel switch : Switching from intensive fossil fuels (coal Fuel Switching Project of the Aqaba Thermal Power or heavy fuel oil) to less intensive fossil fuels (Natural Station ATPS: from fuel oil to natural gas; gas, LPG). Methodology ACM 0011 – “Consolidated baseline LANDFILL GAS CAPTURE, Emission reductions achieved as a result of the methodology for fuel switching from coal and/or decreased carbon intensity of electricity and/or heat petroleum fuels to natural gas in existing power plants FLARING OR USE generation. for electricity generation� • Cogeneration : Switch from electricity generation only Expected CER: 397 163 tCO2 / Year to electricity and heat generation. High energy efficiency with less GHG emissions per unit energy generated Registered on September 30, 2008 under N°1758 12 13 LandFill Gas (LFG) CDM Category ü This project category comprises measures to ü Landfill gas (LFG) is generated as a result capture and combust methane from landfills used of microbial processes. for disposal of residues from human activities including municipal, industrial, and other solid ü LFG production depends on the volume and wastes containing biodegradable organic matter. type of waste (particularly its organic content) and landfill conditions (especially moisture). ü the recovered LFG could be flared or used for heat ü It is mixture of methane and carbon dioxide or electricity generation. and volatile organic compounds. 3 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Leachate water collecting system REDUCTION OF THE GHG Based on the fact methane is a potent greenhouse gas, 21 times stronger than carbon dioxide. ADDITIONALITY Voluntary project implementation for the CDM, no local legal obligation to flare LFG Gas collecting System Gas Flaring Approved Methodologies for waste projects Flaire 1. AM : Approved Methodology� [large scale] AM0002, AM0003, AM0010, AM0011, AM0013, AM0022, AM0025, AM0039, AM0057 2. AMS: Approved Methodology for Small-scale CDM projects AMSIII.E, III.F, III.G, III.H , III.I III.L 3. ACM : Approved Consolidated Methodology [large scale] ACM0001, ACM0010 4 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. EXAMPLE Energy Efficiency Description: Biogas capture, flaring or use in 14 main landfills in Morocco • Energy Efficiency comprises all the technologies, processes and measures that reduce the energy Methodology: Programmatic approach based on ACM 0001 – “Consolidated baseline and monitoring Energy consumption required to produce one unit of goods or to deliver a specified service. methodology for landfill gas project activities� Expected CER: 26 M tCO2 over 25 years Efficiency • Thus, for the same production or service offered, less energy is used and the associated GHG Nominal installed capacity: 50 MW emissions are then reduced. CDM Program under development 24 26 Efficient Lighting Example Transport Systems under the CDM Project: Visakhapatnam (India) OSRAM CFL ü Transport projects that use less carbon intensive fuel, distribution CDM Project improve the fuel combustion efficiency or save Description: Replacement of 500 000 incandescent lamps energy through traffic optimization or modal change. (90% 60 W and 10% 100W) per 15W and 20W Compact Florescent Lamps) Transport ü Three approved methodologies Systems AM 0031: Baseline Methodology for Bus Rapid Transit Projects AMS III.C: Emission reductions by low-greenhouse gas emitting vehicles Methodology: AMS-II.C. “Demand-side energy AMS-III.U: Cable Cars for Mass Rapid Transit System (MRTS) efficiency programs for specific technologies� ü Two new proposed methodologies are under validation : NM0258 (variation of AM0031 and NM0266 Expected CERs: 275 276 tCO2 over 10 years for Railway Rapid Transit Projects) Registered February 12, 2009 under N°1754 27 29 5 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. CDM Transport Projects EXAMPLE Bus Rapid Transit in Bogotá, Colombia Registered Projects under Methodology projects validation Total TransMilenio Phase II-IV AM0031 1 4 5 Additional 1,3 M passengers/day using BRT Thank you ASM III C 1 2 3 Methodology AM 0031: Baseline Methodology for alahbabi@menara.ma ASM III U 1 1 Bus Rapid Transit Projects Total 3 6 9 Expected CER: 1,7 M tCO2 over 7 years Registered on December 7, 2006 under N° 0672 30 31 32 6 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Project Activity Project Participants The purpose of the project activity is to reduce the greenhouse gas emission from Ghabawi landfill by extraction of the landfill gas (LFG) and utilization of the methane (CH4) for Amman Ghabawi Landfill Gas to Energy energy purposes. Project Replacing fossil fuel by use of LFG will furthermore reduce the carbon dioxide (CO2) emission from power stations. There is no regulatory or legislative requirement for recovering of LFG in Jordan Municipality of Greater Amman Municipality of Greater Amman Location of Project Activity Municipality of Greater Amman Municipality of Greater Amman Municipality of Greater Amman 1 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Technology of the Project Activity Completed cell interim covered and restored to the appropriate grades Capping system Leachate recirculation system Vertical extraction wells Gas pump/compressor and gas treatment system Enclosed flare units Gas/engine generator sets Control, regulation, and monitoring system Municipality of Greater Amman Municipality of Greater Amman Municipality of Greater Amman Municipality of Greater Amman Municipality of Greater Amman Municipality of Greater Amman 2 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Municipality of Greater Amman Municipality of Greater Amman Municipality of Greater Amman Estimated amount of emission reductions over the chosen crediting Project Boundary Activity period: Thanks Ahmad G. Alhyasat Municipality of Greater Amman Municipality of Greater Amman Project Manager – Amman Solid Waste Management 3