naturalcapitalpartners.com China: Sichuan Household Biodigester Project This Gold Standard CDM project distributes small-scale biogas plants, targeting one million low income households with livestock across the Sichuan Province of China. To support rural development and environmental protection, the project uses carbon finance to enable low income households to participate in the province’s biogas programme, which offers clean and affordable energy to homes. In addition to reducing greenhouse gas emissions, the project improves indoor air quality and sanitation for rural communities, while creating jobs for the local population. Project type: Household devices; resource recovery Region: Asia Standards: Employment opportunities: The project accounts for roughly 60% of all biodigester installations in recent years, generating approximately 7,500 jobs for the local population. naturalcapitalpartners.com Carbon finance enables rural, low income households to participate in the province’s biogas The project uses carbon finance to enable one million low income, rural households with livestock to access clean programme by providing financial and affordable energy. support, totalling roughly 40% of the cost of the biodigester in addition to the government subsidy per digester which is provided to every household, irrespective of income level. The project The project supports the installation of robust, n Financing service centres to provide free locally appropriate biogas plants that store technical support and servicing. Individual 6-10m3 of household livestock waste (from technical support is expensive and difficult cattle, buffalos or pigs). Through the process to obtain in rural areas, and technical of anaerobic digestion, the biogas plants difficulties with the government scheme digest manure and recover the methane have hampered the long-term operation (CH4) by-product. The biogas is then fed into of biogas plants. Carbon finance ensures a cookstove to displace coal as the main support is available when needed, so that household energy source. Aside from the rural households are guaranteed to receive greenhouse gas emission reductions from the long-term benefits of their investment. the fuel-switch, by diverting manure to the biogas plant, the project helps reduce Contribution to sustainable emissions by capturing methane that would development: otherwise be released into the atmosphere The project contributes to sustainable from decomposing manure. development in several areas. Carbon finance is being used to support Energy Access the expansion of an existing government The project improves energy access by scheme, enabling rural, low income offering a free, renewable and clean energy Biogas is used to fuel households to access the technology by: source (biogas) for cooking and lighting. cookstoves, displacing coal as the main energy source. As of April 2015, the project had installed As a clean burning fuel n Sharing carbon revenues through direct over 395,000 biogas plants across the this eliminates household payment to households to refund a Sichuan province. Free annual maintenance air pollution, significantly improving the livelihoods proportion of the biogas digester purchase of the biodigesters significantly increases of household members. and installation cost. This revenue is their reliability and safety, and raises user confidence in the technology. Financial Security The project specifically targets low income households, which are selected by the Sichuan Rural Energy Office (SREO) based on a comprehensive list of inclusion criteria (including per capita annual income). In 2014, the per capita income threshold was 3,079 CNY, approximately 450 USD. Carbon finance is used to provide these selected households with financial support, totalling roughly 40% of the cost of the biodigester. naturalcapitalpartners.com Health and Well-being The project replaces solid fuels like coal for household energy needs. Such fuels cause indoor air pollution which can contribute to increased likelihood of illness, including acute lower respiratory infections such as pneumonia in young children, and chronic obstructive pulmonary disease and lung cancer in women (and to a lesser degree in men)1. Biogas produced by the digesters burns cleanly without producing ash or smoke, delivering a significant improvement Typical farmland in the Sichuan region. to the livelihoods of household members. Project surveys have found that eye related problems and respiratory illnesses have With a sustainable and affordable energy decreased in frequency with the installation source (biogas), households report a of the biogas plants. cost saving through avoided purchase of coal for cooking needs. The project has Empowering Women a clear revenue sharing plan, distributing By displacing other fuel types, the biogas revenues from carbon sales to participating plants grant women more time for other households, the local rural energy office activities, as they no longer need to collect that provides biodigester servicing, and firewood or travel to purchase coal. to the project developers. Additionally, in the absence of soot and smoke, women can enjoy a cleaner cooking environment. As of April 2015, the project Economic Growth had installed over 395,000 Carbon finance has enabled the existing government biogas promotion scheme to biogas plants across the Sichuan scale its distribution, with almost 60% of province, with almost 60% all Sichuan rural households supported financially by the project. Eligible households of households supported that have been targeted by the project financially by the project now have access to free energy, and are supporting the transition from solid fuel to clean, renewable energy sources. Water Stewardship Job Creation Prior to biogas unit installation, animal Across the entire region, there are over waste is typically disposed into surrounding 12,500 staff working on installing biodigesters water bodies or into drainage systems in in rural households as part of the existing the local villages. The proper storage and government programme. As the project recycling of animal manure and organic accounts for roughly 60% of all installations domestic waste in closed digester tanks has in recent years, approximately 7,500 jobs are a number of benefits. It reduces bad odours, attributable to the project. The large majority infectious diseases and water pollution, limits of staff are certified technicians working degradation of arable land, and deters pests. in service centres or independently, while others work on project monitoring and administration. QINGHAI SHAANXI naturalcapitalpartners.com 2 4 6 3 7 10 5 9 11 1 12 14 13 8 By providing a free, 16 renewable and 15 17 19 clean energy source, 18 this technology 20 significantly improves the quality of homes 21 for those households participating in the programme 1.Kangding 7.Dazhou 13.Meishan 19.Luzhou 2.MaerkangInstallationsYUNNAN are located8.Ya’an in Education14.Ziyang and Training 20.Xichang Location 3.Mianyang13 cities out of a 9.Chengdupossible According15.Leshan to information provided21.Panzhihua by Sales and distribution work is done by 4.Guangyuan21, including Yibin,10.Deyang Luzhou, 16.Neijiang GUANGXI Zigong, Neijiang, Leshan, the implementing organisations, prior each region’s energy office across Sichuan, 5.Nanchong 11.Suining 17.Zigong Ziyang, Meishan, Mianyang, to the project, most of the biodigester and is supervised and managed by the 6.Bazhong 12.Guang’an 18.Yibin Guang’an, Dazhou, Suining, and cookstove experts were farmers or provincial Sichuan Rural Energy Office (SREO). Ganzi (Maerkang) and Aba (Kangding). bricklayers. Through participation in the The installations are located in 13 cities out of MYANMAR project, these people have diversified a possible 21, including Yibin, Luzhou, Zigong, (BURMA) their knowledge and skillset. Neijiang, Leshan, Ziyang, Meishan, Mianyang, Guang’an, Dazhou, Suining, Ganzi (Maerkang) Infrastructure Development and Aba (Kangding). By providing a free, renewable and clean energy source, this technology significantly 1. Desai et al. (2004) Indoor smoke from solid fuels, Environmental improves the quality of homes for those burden of disease series No. 4, Available from http://www.who.int/ quantifying_ehimpacts/publications/9241591358/en/, Accessed households participating in the programme. 10/11/2015 Under normal use, the lifetime of the technology is 20 years, but as the parts are resilient and easily replaced, maximum lifetime could be much longer. Region The project is being implemented in a particularly disadvantaged region of China, heavily affected by a major earthquake in 2008 which killed 70,000 people, left five million people without housing, and killed 12.5 million farm animals. With a typical rural income of £400 a year, the Sichuan province contains 43 national poverty counties that qualify for economic assistance from the government. Contact us: London: 167 Fleet Street, 3rd Floor, New York: 545 Madison Avenue, London, EC4A 2EA United Kingdom 14th Floor, New York, NY 10022 T +44 (0)20 7833 6000 T +1-212-390-8835 [email protected] [email protected] .