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Emissions of business today : Poor outcome of 4 Japan CDM projects in Indonesia, prolonged UN audit process blamed (2011-12-30)

First period of the Kyoto Protocol to reduce greenhouse gases began in 2008 and ends next year with target of 6 percent carbon dioxide Year 1990 (CO2) reduction for Japan For the developing countries "Clean Development Mechanism (CDM)", strict audit procedure and time needed by he United Nation’s appointed examiner is proving to be a a major impediment for project development. Forthe Japanese companies involved in CDM projects in Indonesia, emissions reduction is monitored n only four of the past. We lookin into problem of the CDM, and consider its future ; by Yuka Yoshioka. Every day trucks deiver 400ton municipal solid waste to delivered to 10 hectares Sumber Batu landfill in Bekasi, located in West Java. A mountain of waste produce awful smell and there are people who picks up plastic bottles and other waste. 300 people live in shanty huts for 3 million rupiah per month (about 2,580 yen) in income. PT Gikoko Kogyo Indonesia sells environmental equipment and power generation equipment (Kobe Head Office) and four years ago established system where methane is combusted. Methane combustion equipment and linked by pipeline garbage disposal hills, gas recovery and combustion of 130 tons per day (carbon dioxide equivalent). Methane has a high global warming potential than CO2, that there is a suppression effect of global warming just by burning the gas. Although some of the gas to fuel power generation, power generation scale is just 120 kW, the total being used at the project sites. Besides the city of g Bekasi, Gikoko has been methane gas recoveryand flaring project in Indonesia in three other landfills.. The company raised capital for both plant construction, operation and holds the BOT scheme to transfer ownership to local governments. For small businesses, such as the company's neck and the funding. Operating costs but also costs to the United Nations applying for CDM projects, including audit fees paid forapplications greater emissions. The project totatl investment is f more than US$ 4million with loans from the World Bank and Asian Development Bank (ADB) of US$2million. Emission Reduction is sold to the European government in a fixed forward prices. Initially Gikoko expected to produce the emissions of 200,000 tons per year. However, even though you start monitoring as soon as the first CDM project approved inJuly 2009, significantly delayed than originally anticipated audit procedures, authorization of emissions is not approved yet and arrival of the maturities of loans in end 2012 is within just over a year. Gikoko’s director Joseph Hwang said he was “aware of the risk was high, but now it is not economically viable," and laments. Emissions are audited by third party certification, after which UN issues the certicates. Audiors pick on deviation from the UN project design document (PDD) submitted to the company during project registration period in advance(PDD), and requests for many clarification information and data. “It's a very strict auditing. Combustion of methane gas recovery project in general, it is easily affected by weather conditions and the amount of garbage volume”. Another headache is the management of garbage disposal procedure as there is a limit to the budget of local government, heavy equipment, lack of fuel trucks, heavy equipment in operational condition and repairs of perimeter road all affect mount of methane and gas collected at three other Gikoko projects have not reached the level planned till now. Originally CDM is only recognized for “below a certain profitability" and and "there is no possibility to conduct business for profit if there is no institutional CDM" .This inevitably increases the risk of emissions trading revenue. The difficulties faced by Gikoko include difference in the attitude of the government As at August 1, CDM projects are registered in Indonesia 74. Emissions has been issuedout of this, only 12 Japanese companies involved, including the 4. Significant difference compared with the counting of 518 cases published in China. He has an Emissions Acquisition Program, New Energy and Industrial Technology Development Organization(NEDO), which has supported 10 projects so far in order to buy emission credits from companies directly, in China, Indonesia, in all cases of proven zero. More research on emissions for Global Environmental Strategies (IGES), said aresearcher Jun Ichihara, Indonesia does not comply with the legal system, a problem that hinders national and transparent operations. Compared with China, there is a big difference to the support of the central government. China has been working on such a national service center to open a parish ministry to promote the CDM. Data on CDM development in Indonesia is progressing but, still not enough support from Indonesia central government. ? New Initiatives CDM projects have been published of the Japanese companies involved in emissions, 2 recovery of methane gas, power generation and has become 2. Sumitomo Forestry in Central Java Province particleboard (PB) operates a woody biomass power plant in the factory, the minutes showed emissions of 982 tons in March 2009. 130 tons per day using biomass waste materials available in PB, which produces 4 megawatts of electricity. Total investment is $ 7.5 million (£ 648 million approximately). All switching from diesel to biomass power generation plant also led to cost reductions. For power generation business, it helps that you manage your data, you make a big difference to the results of emission reduction monitoring. Also, without the need for coordination with local governments to manage the garbage disposal such as Gikoko , PB’s in-house power generation fuel supply and consumption are contributors to the project’s success factors. Begin new projects now, the methane gas collected in the palm oil mill effluent with 72 plants nationwide that fuel for gas engine, there are plans for Shimizu. Investment of 2-3 billion yen forecast. You can register a number of UN CDM project together a small program "CDM" is adopted, as well as to avoid lengthy procedures, the application of cost savings. In 14 years, are expected to total 10 million tons of CO2 reductions. Opaque ? "Kyoto" after Emissions trading price since July 2008, the decline in response to the global economic slowdown.?Maranai framework of international Kyoto Protocol ends next year, the outlook is uncertain. Examination of the United Nations as too restrictive, some new movement to introduce a system of bilateral or multilateral. Gikoko’s Joseph Hwang stated, "The CDM is a high risk business. In future we shall do electricity sales, with a view to including recycling business.," he said. Since the policy listed the percentage of renewable energy to raise the Indonesian government has begun to show a positive attitude to small-scale purchasing power of national power PLN. " We started business to contribute to environmental protection with our technology. Once emissions produce revenues we shall provide safety facilities for the poor living near garbage disposal total to 7% of carbon revenues .” In order not to fail the CDM, developing countries, government support, development of financing systems, understanding and cooperation is required and above all local authorities and residents.

Gikoko Signed MoA for Trial Period of Landfill Gas to Energy Operation with PLN (2009-05-01)

Friday, 1st May 2009, PT. Gikoko Kogyo Indonesia signed Memorandum of Agreement (MoA) for Trial Period of Landfill Gas to Energy Operation with State Electricity Company (PLN) West Java and Banten Distribution via PLN Bekasi Network Service Area (PLN APJ Bekasi).
This Landfill Gas to Energy project is a pilot project to see the possibility in creating a new source of renewable energy in order to fulfill the increasing need of energy.



Gikoko Won Free Renewable Energy Business Plan Aid (2009-01-09)

Gikoko has been selected to receive professional help from USAIDS for business plan preparation and to present the ideas to renewable energy investors in The Asia Forum for Clean Energy Financing, Singapore from 3rd-4th March 2008. The event is organized by the Climate Technology Initiative (CTI), CTI's Private Financing Advisory Network (CTI's PFAN), the International Center for Environmental Technology Transfer (ICETT), ReEx Capital Asia, the Sustainable Energy Association of Singapore (SEAS), and the USAID ECO-Asia Clean Development and Climate Program (ECO-Asia).

Gikoko Won Ryutaro Hashimoto APFED Award (2008-07-29)

Gikoko won Silver Prize in the Ryutaro Hashimoto APFED Award. The award ceremony was held in the Asia Pacific Forum for Environment and Development (APFED) II Fourth Plenary Meeting on 25-26 July in Davao, Philippines. Mr Joseph Hwang, Director of PT Gikoko Kogyo Indonesia, made presentation during the ceremony.

Palembang LFG Flaring CDM Project Official Announcement (2008-07-24)

Palembang LFG Flaring CDM Project was officially announced during 6th Meeting on ASEAN Working Group of Environmentally Sustainable Cities, on July 23rd 2008. The announcement was attended by the delegation of ASEAN countries, representative of Environment Ministry, Asian Development Bank. The project is a Public Private Partnership between Palembang municipality and PT Gikoko Kogyo Indonesia.

Socialization of National Council of Climate Change (2008-07-09)

As a stakeholder on climate change, Gikoko attended meeting on socialization of National Council of Climate Change (Keppres No.46 Year 2008), held in Ministry of Environment on July 9th, 2008. The meeting was attended by representative of private sector, government and NGO. The National Council will establish Working Groups for each sectors to give advice on the climate change policy.

Bekasi LFG Flaring Project Official Announcement (2008-07-03)

LFG Flaring Project at Sumur Batu Landfill, Bekasi was officially announced and opened by Minister of Environment, Ir Rachmat Witoelar at July 1st, 2008. The ceremony was attended by Mayor of Bekasi, Mr Mochtar Mochammad and the municipality staffs, and representative of World Bank, Mr. Joe Leitmann, Mr. James Monday, Mr. Ahmed Mostafa

Pontianak LFG Flaring Project Has Been Registered (2008-06-17)

Pontianak LFG Flaring Project has been registered, to be the first CDM project of this type in Indonesia. More information on the project (Ref No.1582) can be found at: UNFCCC Website

ICC Seminar "Making Additional Income from CDM Project" (2008-01-22)

International Chamber of Commerce presents one day seminar: "Making Additional Income from CDM Project" at Graha Niaga, Jl. Jenderal Sudirman Jakarta, on January 30, 2008, 08.30am. Opening address by The Minister for the Environment. Gikoko's Director Mr. Joseph Hwang to speak on case study, landfill gas abatement. For information contact Ibu Liza. Download agenda

Gikoko's Director was invited to COP (2007-12-11)

Gikoko's Director was invited to attend Conference of Parties (COP) 13 at Bali. Gikoko participated in the meeting proved its concern and commitment on the climate change and sustainable development.

Gikoko's Director was interviewed by Cipta Karya (2007-08-22)

To download the file click this link : Download

Pontianak LFGF Project Received DNA Approval (2007-08-22)

Gikoko has received approval from DNA for its Pontianak LFG Flaring project on August 21, 2007. The project will reduce GHG emission and improve the MSW management.

Pontianak LFGF Project Official Announcement (2007-06-14)

The Landfill Gas Flaring Project at TPA Batulayang, Pontianak was officially announced at June 14th, 2007. Director of Gikoko and Mayor of Pontianak started the flaring system at that ceremony, witnessed by some delegations of APEKSI congress.

Solid Waste Management Workshop (2007-06-14)

The World Bank organizes Solid Waste Management Workshop at Sanur Paradise Plaza Hotel, Denpasar on June 18-19th, 2007.

The workshop is expected to be attended by municipal and regional city government officers and World Bank's partner in Solid Waste Management program, including Gikoko.