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WWF Nepal Gold Standard Biogas Voluntary Emission Reduction (VER) Project

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WWF Nepal Gold Standard Biogas Voluntary Emission Reduction (VER) Project (GS-VER-PDD) WWF Nepal Gold Standard Biogas Voluntary Emission Reduction (VER) Project September 2008 VOLUNTARY OFFSET PROJECTS PROJECT DESIGN DOCUMENT FORM (GS-VER-PDD) Version 01 - in effect as of: January 2006) CONTENTS A. General description of project activity B. Application of a baseline methodology C. Duration of the project activity / Crediting period D. Application of a monitoring methodology and plan E. Estimation of GHG emissions by sources F. Environmental impacts G. Stakeholders’ comments Annexure Annex 1: Participant contact information Annex 2: Baseline information Annex 3: Monitoring plan Appendices Appendix 1: No Objection Letter Appendix 2: Contract Document Appendix 3: Legal Right Approval Appendix 4: An Affirmation Letter from WWF Acronyms References SECTION A. General description of project activity A.1 Title of the project activity Title: WWF Nepal Gold Standard Biogas Voluntary Emission Reduction (VER) Project Version: 03 Date: September, 2008 A.2. Description of the project activity The purpose of the WWF Nepal Gold Standard Biogas VER Project: Under the proposed project activity, the World Wildlife Fund Nepal (WWF) aims to sell carbon credits generated from 7,500 biogas digesters plants in Nepal’s Terai Arc Landscape (TAL) project area, and use renewable biogas energy to replace the heavy consumption of fuel wood in this area for cooking. Another objective of this project is to enable Verified Emission Reductions (VERs) from the project to reduce Greenhouse Gas (GHG) emissions by displacing conventionally used fuel sources, such as fuel wood and kerosene, for cooking. Credits from generated emission reductions will be owned by WWF Nepal Program. WWF Nepal Program, the project proponent, will be involved in providing a partial grant to households adopting biogas plants within the Terai Arc Landscape (TAL) project area, and credit to purchase systems through micro- finance institutions (MFIs). WWF Nepal Program will also engage in awareness raising and capacity building of non- governmental organizations (NGOs) promoting household biogas technology. Biogas Sector Partnership – Nepal (BSP-Nepal) will, under its national biogas promotion activities, manage the database, check the quality of the installed plants, ensure after sales services through pre-qualified companies and manage the guarantee fund. Contribution to Sustainable Development At the local level, the proposed project has multiple social benefits. A major household benefit is the reduction in the time and energy spent by women and children in collecting firewood for cooking. The project will attach latrines to biogas plants, promoting better sanitation in rural households. Potential employment will add more than 255 persons for skilled people in the construction, maintenance, marketing, and financing of biogas plants. The use of biogas means negligible smoke, hence better family health. Moreover, the residual biological slurry from the biogas plants can be used as superior organic fertilizers to enhance agricultural yields. At the national level, the project supports the Nepali Government’s sustainable energy goals as laid out in 10th Five Year Plan to improve energy access for rural poor, and to reduce rural poverty by providing high quality biogas plants to poor households at an affordable price. Additionally, the project will support forest conservation goals by substituting traditional cooking the fuel, firewood, with biogas. Such use of renewable biogas energy will simultaneously improve the local and global environment by reducing GHG emissions. Results from the Sustainable Development Matrix Two stakeholder consultations1 were held under this project. Overall there was a positive perception of local stakeholders towards the project, with a high level of interest to see the project go ahead successfully. No major environmental, physical or socially negative impacts were identified; neither were sensitive or protected areas. Table 1 presents the results of the stakeholder consultation meeting specifically conducted for this project. Table A.2.1: Sustainable Development Assessment Matrix Component Score (-2 to Justification/Reference 2)/(-,0,+)2 1 See the “WWF Nepal Gold Standard Biogas VER Project: Consolidated Report on Stakeholders Consultations “ • Indicator Local/regional/global environment • Water quality and quantity 0 The expected environmental impacts on water resources and water quality and quantity are negligible as the dung is fed into the digester mixed with water and the slurry is later used as a composed fertilizer in the agricultural land. • Air quality (emission other than GHS) +2 The use of biogas plants will minimize air pollution and have health and sanitation benefits. In the absence of the use of biogas plants, and with poor ventilation systems in the rural context the use of fuel wood remarkably contributes to building up high concentration of TSP (Total Suspended Particles) of PM10 (Particles up to 10 microns in diameter) and PM 2.5 (Particles up to 2.5 microns in diameter) and carbon monoxide to cause indoor air pollution. Source: WHO: Indoor Air Pollution, Health and the Burden of Diseases ITDG: Smoke health and household energy AEPC, Biogas Users’ Survey 2006/07; page 9-1 • Other pollutants 0 Not Applicable (including where relevant , The proposed biogas plants are of small toxicity, radioactivity, POPs. domestic scale stratospheric ozone layer depleting gases) • Soil Conditions +2 The expected environmental impacts are negligible as only a small pit is dug open during construction phase. However there is positive impact of the use of slurry on agriculture production; which also decreases the use of chemical fertilizers reduced by 9%. Source: 1. Biogas Support Programme. An Integrated Environment Impact Assessment. June 2002. 150p. (unpublished) BSP Lib Temp No. 1; page 2; http://www.bspnepal.org.np/pdfs/bsp_30.pdf 2. AEPC, Biogas Users’ Survey 2006/07; page 9-1 • Biodiversity +0 The proposed project activity will help to avoid deforestation, which in turn will also play a vital role to increase habitats of various species found in the area. With population increasing and people also migrating to the Terai for better 2 Scoring System: -2: major negative impacts; -1: minor negative impacts; 0: no, or negligible impacts:; +1: minor positive impacts; +2: major positive impacts settlement opportunities, the deforestation rate in the Terai is quite high (1.3% annually) resulting in reduced regeneration of forests as compared to that a decade ago. The Nepal Millennium Development Goals Progress Report 2005 has also indicated the decrease in forest coverage (Pg 71) (37% in 1999 and 29% in 2000), which is an indicator for increased deforestation rates. Moreover the trend for demand for fuel wood has also increased from 2004 onwards. Source: ~Nepal Millennium Development Goals Progress Report 2005 ~Nepal Forest Inventory 1999 ~Forest Resources of Nepal FRA 2000 Sub Total +4 Social Sustainability and Development • Employment* (including job quality, +1 With the project activity new jobs will be fulfilment of labor standards) created e.g. in the construction areas and financing sector. For most of them training are required. The types of training are: i) Masonry Training ii) Supervision Training iii) Gender Training iv) Business Management Training v) Promotional Training to Users • Livelihoods of the poor* +2 Saved Time for income generation; (including poverty alleviation, Source: AEPC, Biogas Users’ Survey distributional equity and 2006/07; page 4-1;4-2 access to essential services) Toilets are constructed (motivated for construction) and connected with 65% of biogas plants. 74% of bio-slurry is utilized as an organic compost fertilizer http://www.bspnepal.org.np/achievments.htm • Access to energy services* +2 The energy service provided by the use of biogas is durable. Source: AEPC, Biogas Users’ Survey 2006/07; page 4-1;4-2 • Human and institutional capacity +1 Reducing work burden of women, time (including empowerment, saved*; more time for social involvement and education. Involvement, income generation. gender) Source: 1. Biogas Support Programme. An Integrated Environment Impact Assessment. June 2002. 150p. (unpublished) BSP Lib Temp No. 1; page 2; http://www.bspnepal.org.np/pdfs/bsp_30.pdf 2. AEPC, Biogas Users’ Survey 2006/07; page 9-1 Sub Total +6 Economic and Technical Development • Employment (numbers)* +1 Potential for employment; 255 persons Types of jobs created: Biogas Installation companies recruit unskilled labors (temporary), masons, QC control supervisors (skilled labors). Micro finance institutions recruit human resources. Source: Narayan Kafle, A Study on Employment Opportunities Created by Biogas Financed Through MFIs, 2006 • Balance of Payments (sustainability) 0 The economic impact or the impact on the balance of payments is negligible as the funds obtained are to minimize the funding gaps to construct biogas plants through sale of verified quality carbon credits. • Technological self reliance* The project will involve the institutional and (including project replicability, +1 capacity building in the region. At local hard currency liability, skills level, the Community Forest development, institutional Coordination Committees (CFCCs) have capacity, technological been formed. The Community Forest transfer) Coordination Committees have been capacitated to manage funds as loans through Micro Finance Institutions to construct the biogas plants. Biogas construction companies have an association
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