World Bank Office Jakarta
Jakarta Stock Exchange Building
Tower 2, 12 th Floor (62-21-5299-3000 Contact :
In Jakarta:
Randy Salim - 021 5299-3259
rsalim1@worldbank.org In Washington:
Anita Gordon - (202) 473 1799
agordon@worldbank.org
Greenhouse gas emissions to decline; solid waste collection and disposal throughout Indonesia to improve as a result Bekasi, March 3, 2008—The World Bank today signed an innovative Emission Reduction Purchase Agreement with PT Gikoko Kogyo Indonesia (Gikoko) that will at once reduce greenhouse gas emissions, improve solid waste management, and provide funding for local communities in the Municipality of Bekasi. Under this agreement, the World Bank, acting as trustee of the Netherlands Clean Development Mechanism Facility, will purchase approximately 250,000 tons of CO2-equivalent of Certified Emissions Reductions. The credits will come from the collection and flaring of methane gas generated from solid waste disposed in Bekasi’s TPA Sumur Batu landfill, on the northeast boundary of TPA Bantar Gebang (DKI Jakarta’s landfill). The purchase is made possible by the Kyoto Protocol’s Clean Development Mechanism. The CDM allows countries to achieve some of their emission reductions under the Protocol by purchasing credits from projects in middle income countries such as Indonesia. “This project, together with the growing number of CDM projects in Indonesia, is an indication of the critical role the country is playing now in addressing climate change,” said Joachim von Amsberg, World Bank Country Director for Indonesia. “It is also an indicator of Indonesia’s long term commitment as a global partner in efforts to seek solutions to global warming.” This project has made the Municipality of Bekasi a pioneer in eco-friendly solid waste management in the island of Java. “Bekasi is proud to play a part, however small, in the global effort to reduce greenhouse gas emissions,” said Akhmad Zurfaih HR, the Mayor of Bekasi Municipality. “We are also proud to take the first step in improving solid waste management in the greater Jakarta area.” A public-private sector partnership between Gikoko and the Municipality of Bekasi removes the commercial barriers that have previously restricted private sector involvement in solid waste management. This will be done by providing a revenue stream for the municipal government and private sector coming from the sale of greenhouse gas emission reduction credits induced by the flaring of methane. According to James Orehmie Monday, World Bank task manager, “Implementation of this project will act as a catalyst to develop similar CDM projects in the municipal solid waste sector. These will lead not only to reductions of greenhouse gas emissions, but also to much needed improvements to solid waste collection and disposal throughout Indonesia. Additionally, this project is providing funds for the local community living around and working on the landfill to begin to address some of their most pressing needs.” Local communities themselves will jointly manage the use of these funds, with the city and Gikoko, thereby ensuring that the local community is not only a part of the decision making process but is also jointly accountable for the use of these funds.
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About CDM Methane Collection
Methane is a particularly potent greenhouse gas, 21 times more efficient at trapping heat within the earth’s atmosphere than an equivalent ton of carbon dioxide .
The most significant environmental problems associated with solid waste management in Indonesia are low collection rates and the offensive odors, fires, flies, instability of waste disposal sites (cells) and contaminated liquid known as leachate generated in waste disposal sites (landfills). The commercial viability of CDM methane collection and flaring projects, however, depends on maximizing the amount of methane that can be collected, given that emission reduction revenues are the only revenue stream to cover the project costs. Therefore, efforts to increase the waste decomposition rates and efficiency of methane collection, and thus revenues, require improved landfill management practices that reduce many of the current environmental problems. The Netherlands Clean Development Mechanism Facility
The Netherlands Clean Development Mechanism Facility was established by the Government of The Netherlands in 2002 to purchase emission reduction credits from projects that promote renewable energy technology (such as geothermal, wind, solar, and small-scale hydro-power); clean, sustainably grown biomass; energy efficiency improvements; fossil fuel switch and methane recovery; and sequestration. Since then, the World Bank-managed Facility has agreed to purchase credits from a number of projects in Indonesia. To read more about the World Bank’s support for Indonesia visit: www.worldbank.org/id, www.carbonfinance.org |
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