The World Bank has made available financial incentives for Philippine cities converting garbage dump sites into sanitary landfills.
In a statement on Wednesday, World Bank said the first ever landfill gas Program of Activities (POA) was registered with the United Nations Framework Convention on Climate Change (UNFCCC) last October 20.
The Land Bank of the Philippines has worked with World Bank to develop the Methane Recovery from Waste POA, which allows local governments, communities and investors the opportunity to generate carbon credits for complying with the Ecological Solid Waste Management Act of 2000.
The law seeks to phase out open dump sites and convert them into sanitary landfills that reduce the risks of fire, water contamination, and methane emissions.
Under the POA, a series of individual projects will be conducted in which carbon credits are earned for every ton of methane captured or avoided. The carbon credits will then be sold to carbon funds administered by World Bank, creating a revenue stream for local governments and project entities.
“Managing garbage is a serious challenge in many towns and cities in the Philippines, especially in Metro Manila,” said World Bank Country Director Motoo Konishi.
“We are thrilled that carbon finance can be used as an instrument to better manage waste, an important step towards a clean and low emissions development for the metropolis,” Konishi added.
Land Bank president Gilda E. Pico said the POA for landfills is a huge boost for local governments and the country as a whole.
Based on the Clean Development Mechanism of the Kyoto Protocol, the POA allows difficult, costly and time-consuming projects to be developed on an individual basis but still achieving significant impact, Pico explained.
“We welcome the registration of the POA with the UNFCCC as it is a major stride towards our pursuit of promoting sustainable development and participatory environmental protection especially among our LGU clients and partners,” she said.
Land Bank will act as the financial and technical intermediary for the project, providing the necessary funds for the installation of technologies that reduce greenhouse gas emissions.
Last July 26, a POA in the animal waste sector was registered with UNFCCC, giving financial incentives to local pig farmers using water treatment systems that help address climate change.