1. Laguna De Bay Carbonshed Project Idea: A Demand-Driven, Umbrella Approach to Community Carbon Finance for Environmental Projects

2. Erosion and Siltation Pollution (organic, nutrients, solid waste) Pollution Reduction and Treatment Watershed rehabilitation Key Issues in Laguna de Bay Global Benefits CO 2 CH 4 N2ON2OCO 2 sequestration emissions reductions Actions

3. Small scale watershed environmental projects. Community participation in identification of environmental priorities and projects. Reduced transaction costs through national intermediaries LLDA: technical intermediary. MDFO: financial intermediary. Should reduce transaction costs by exploring the use of intermediaries and streamlined procedures. Projects must benefit communities and their local environment. Focuses exclusively on small scale projects. CDCF Carbonshed Project

4. LISCOP (component 1) Small scale watershed environmental projects FinancingPlanning LGU-NG Cost sharing MDFO Financial Intermediary 250 million PhP Siniloan TanayPillilaBinan …….. 25-50 projects (5 million-10 million PhP each) in up to 24 microwatersheds River Councils Participatory Multi-stakeholder LLDA Technical Intermediary LEAP Characterization Priority setting Project Identification & Development CDM eligible projects (Carbonshed projects) Other projects 24 microwatersheds CERs

5. Project Types Example subproject MicrowatershedPotential GHG emissions reduction for individual project Waste treatment Pig waste biogasSiniloan, Pagsanjan-Lumban 2,000 ton CO 2 /yr Erosion reduction River bank vegetation Pagsanjan-Lumban, Tanay 4,000 tons CO 2 /yr The total amount for the bundled projects will depend on choice of and demand for subprojects: Expected: 9,000 tons CO 2 /yr - 60,000 tons CO 2 /yr Maximum: 150,000 tons CO 2 /yr

6. Baseline Methodology and Additionality For Small-scale Projects Methodology: Streamlined CDM procedures for small-scale projects. Exist for some proposed subprojects (biogas), may have to develop for others. Would be incorporated as part of LEAP process and included in PDD. Additionality: Follows small-scale additionality rules, including one of the following: a.Investment barrier. b.Technological barrier. c.Barriers due to prevailing practice. d.Other: institutional, limited information, managerial or organizational resources, financial resources, capacity to absorb new technologies. Would be incorporated as part of LEAP process and included in PDD.

8. Representative Subprojects: Pig Waste Biogas Project HOG FARM WASTE GENERATION IN LAGUNA DE BAY (kgs/year)

9. 1,200 kg/yr 7 backyard piggeries 2 commercial piggeries coconut area rice area 19 households 8,100 kg/yr 23 backyard piggeries 19 commercial piggeries 52 households 7,900 kg/yr 34 backyard piggeries 14 commercial piggeries coconut area 176 households LucbanriverLucbanriver InitianInitian CreekCreek MajayjayRiverMajayjayRiver Balanac River Laguna de Bay Organic Waste Loading From Majayjay

13. Communal Pig Waste Biogas Digesters Project basics Cost 9.8 million PhP 20 LGU-run biogas reactors for backyard piggeries 2 LGU-run biogas reactors for commercial piggeries Baseline: Disposal of waste using current practices without collection of methane. Emissions reduction: Reduction of methane and N2O emissions from waste and replacement of current cooking fuel use. Small-scale additionality test: Prevailing practice is no treatment or treatment using lagoons. Biogas collection is very uncommon and not mandated by regulations. Other: Lack financial resources with complementary technical and information support.

16. Environmental Benefits # of biogas systems Waste treatment (% of pollution from piggery type) GHG emissions reduction (Tons CO2 equiv/yr) Annual revenues for LGUs and communities (PhP/yr) Backyard piggeries 20 (90 pigs/system) 100% of pollution from backyard piggeries 19850,000 Commercial piggeries 2 (5800 pigs/system) 18% of pollution from backyard piggeries 1,255314,000 Total2217% of pollution from piggeries in Majayjay 1,453364,000

17. Community Benefits Reduced odors, improved sanitation. Cost savings from fuel use. 364.000 PhP/yr of revenues from ERs can be reinvested by LGUs in environmental activities in community.

18. As the UMBRELLA CONCEPT is an INNOVATION for the CDCF, the decision on how this approach or alternative approaches would be undertaken will be discussed and agreed with the CDCF and the Philippine counterparts as part of the project preparation. The project will act as a pilot for LdB watershed and a demonstration for other watersheds within the Philippines and therefore catalyze more emissions reductions in the country.

19. Project Idea Summary CDM-eligible investments in sustainable development at the community level. Reduces transaction costs through umbrella approach. Community ownership through demand driven, participatory approach. Brings benefits of CERs to communities.

20. THANK YOU!