The Land Bank of the Philippines was conferred with the “Karlsruhe Outstanding Sustainable Finance Project Award” during the Global Sustainable Finance Conference 2019 in Karlsruhe City, Germany last July , in recognition of its successful implementation of the Carbon Finance Support Facility (CFSF) which involves the installation of landfill gas collection and combustion systems for electricity generation in two of the country’s largest landfills.
The waste-to-energy projects successfully implemented under the CFSF involve the methane gas power plant projects at the Quezon City and Rizal province sanitary landfills, operated by Pangea Green Energy Philippines, Inc. (PGEP) and Montalban Methane Power Corporation (MMPC), respectively.
These projects have power generation capacities of 2.5 MW and 8.19 MW, respectively, and are expected to contribute reduction of about 1M tons of greenhouse gas (GHG) emission, or equivalent to 430,000 barrels of crude oil consumption, for the years 2014-2020.
“The Carbon Finance Support Facility is part of Landbank’s response to the global call for immediate and appropriate action to mitigate climate change. We look forward to supporting more waste-to-energy projects, as we hope to encourage more local enterprises to lead socially-responsible and environmentally-conscious operations,” said Cecilia Borromeo, Landbank president and chief executive officer.
Both projects were registered by Landbank as eligible projects under the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC).
The CDM allows emission-reduction projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one ton of CO2. These CERs can be traded and sold, and used by industrialized countries to meet a part of their emission reduction targets under the UNFCCC’s Kyoto Protocol.
The CDM is a trailblazer, being the first global environmental investment and credit scheme of its kind, and with the CERs as a standardized emissions offset instrument.