TH-CF-Livestock Waste Management Project

closed

The objectives of the Livestock Waste Management Program is to: (a) reduce methane emissions from improved livestock waste management practices through a carbon finance transaction between the World Bank and the project sponsor; and (b) serve as a demonstration for other livestock producers. The project aims to improve livestock waste management practices and take advantage of the captured renewable energy in the form of biogas at participating farms. This Carbon Finance Operation (CFO) is composed of three project components. The first component of the project is construction of livestock waste management facilities. This component include: (a) construction of physical facilities (channel digester, electricity generation, on-farm electricity transmission lines, flaring pipes, sludge storage tank and drying beds, and a series of ponds); (b) installation of monitoring equipment and devices; and (c) farmer training. The second component of the project is the carbon finance transaction. This component will facilitate the purchase of the Certified Emission Reduction (CERs). The Clean Development Mechanism (CDM) enables the creation, issuance, and sale of CERs from projects countries that reduce emissions of Greenhouse Gas (GHGs). This CFO will facilitate the transaction of the bundled CERs from the participating farms. The transaction will be between Advance Energy Plus Co. Ltd (AEP) (serving as the project sponsor) and the World Bank-managed Community Development Carbon Fund (CDCF). The terms and conditions will be agreed in the Emission Reduction Purchase Agreement (ERPA) to be signed by the two parties. The third and final component of the project is community benefit plan (CBP). To meet the CDCF's requirements, this CFO will support activities to improve the quality of life in selected communities living around the participating farms through a CBP. The CBP will be funded from a premium separate from the payments for the CERs and the value of the premium will be agreed during negotiations of the ERPA and recorded in the final signed ERPA.