BRAZIL INTEGRATED SOLID WASTE MANAGEMENT AND CARBON FINANCE PROJECT

Transcription

1 BRAZIL INTEGRATED SOLID WASTE MANAGEMENT AND CARBON FINANCE PROJECT WASTE TO WEALTH: LESSONS LEARNED FROM WB SOLID WASTE MANAGEMENT PROJECTS March 1, 2012 Catalina Marulanda Sr. Environmental Specialist Environment Department (LCSSD) Latin America and the Caribbean A quick overview of the SWM sector in Brazil Total population: 195 million 80% lives in urban centers and 90% of GDP is created in cities. Roughly 57 million tonnes of municipal solid waste were produced in 2009 o 7 million tonnes not collected o 22 million tonnes improperly disposed in uncontrolled landfills and dumpsites. Average generation rates in metropolitan regions: 1.2 kg/pc/day Wide variations in service provision (collection, treatment and disposal) amongst the various regions CONTEXT 1

2 Lack of regulatory framework and public resources are not the problem for the lack of SWM investment Federal Program for Growth Acceleration allocates significant resources for financing of urban infrastructure National Solid Waste Law (2010) provides a sound framework for improving the management of SW, and sets responsibilities and targets for generators and regulators: o Municipal solid waste action plans (all dumps to close by 2014) o Consumers required to separate household waste o Private sector encouraged to adopt life-cycle approaches to production o Financial incentives to encourage participation of waste pickers in collection and recycling WHY IS SWM SUCH AN ISSUE? Limited municipal capacity and low private sector involvement 5,565 decentralized, autonomous municipalities, each responsible for the management of their local SW Technical and operational gap that prevents municipalities from financing SW investments & that does not provide sufficient incentives for the private sector to become involved o Financial and fiscal restrictions o Limited technical capacities to prepare viable projects o Limited capacity to carry out complex environmental licensing processes for new landfills o Environmental and social liabilities from uncontrolled disposal sites o Limited access carbon markets WHAT ARE THE CHA ALLENGES THEN? 2

3 A partnership between the World Bank and Caixa Econômica Federal (CAIXA) The Project combines a Loan from the WB (US$ 50 million) with federal funding for public infrastructure managed by CAIXA (US$ 150 FGTS million) A line of credit is set up for lending to municipalities or to the Year 1 private sector for SWM Bundled with Carbon Year 2 Finance operation, which provides additional Year 28 resources from the sale of carbon credits Empréstimo US$50M BANCO MUNDIAL CAIXA AT AT US$200 M $ por Programa de actividades CPA 1 CPA 2 $ por CPF CPA 3 CPA 4 CPA 5 CPA CPA CPA n THE PROJECT How is the Project innovative? Develops technical and financial tools to promote private sector participation Deploys tools through the largest financier of public infrastructure First fully blended IBRD-CF project in LAC First programmatic Carbon Finance operation (POA) in the SW sector to be registered in Brazil CAIXA is first bank to accept future carbon revenues as partial guarantees Piloted the Use of Country Systems in Brazil - Environmental and Social Management Framework adopted by Caixa for entire SWM portfolio. TRANSFORMATIVE I MPACT 3

4 Leveraging resources The project was built on contributions from four critical partners: The World Bank CAIXA The Carbon Partnership Facility The Japanese Social Development Fund ENVIRONMENTAL AND SOCIAL MANAGEMENT FRAMEWORK IT S ALL ABOUT PA RTNERSHIPS 4

5 Current status Loan Agreement and ERPA signed in December 2011 Registration of POA well advanced (Expected by mid 2012) First CPA of POA is ongoing: CTR Santa Rosa, Rio de Janeiro Four addicional CPAs identified and in preparation PRELIMINARY RESU ULTS Thank you very much! 5