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This Gold Standard CDM project distributes small-scale biogas plants, targeting one million low income households with livestock across the Sichuan Province of China. To support rural development and environmental protection, the project uses carbon finance to enable low income households to participate in the province’s biogas programme, which offers clean and affordable energy to homes. In addition to reducing greenhouse gas emissions, the project improves indoor air quality and sanitation for rural communities, while creating jobs for the local population.

Employment opportunities: The project accounts for roughly 60% of all biodigester installations in recent years, generating approximately 7,500 jobs for the local population.

Project type: Household devices; resource recovery

Region: Asia

Standards:

China: Sichuan Household Biodigester Project

in addition to the government subsidy per digester which is provided to every household, irrespective of income level.

n Financing service centres to provide free technical support and servicing. Individual technical support is expensive and difficult to obtain in rural areas, and technical difficulties with the government scheme have hampered the long-term operation of biogas plants. Carbon finance ensures support is available when needed, so that rural households are guaranteed to receive the long-term benefits of their investment.

Contribution to sustainable development:The project contributes to sustainable development in several areas.

Energy AccessThe project improves energy access by offering a free, renewable and clean energy source (biogas) for cooking and lighting. As of April 2015, the project had installed over 395,000 biogas plants across the Sichuan province. Free annual maintenance of the biodigesters significantly increases their reliability and safety, and raises user confidence in the technology.

Financial SecurityThe project specifically targets low income households, which are selected by the Sichuan Rural Energy Office (SREO) based on a comprehensive list of inclusion criteria (including per capita annual income). In 2014, the per capita income threshold was 3,079 CNY, approximately 450 USD. Carbon finance is used to provide these selected households with financial support, totalling roughly 40% of the cost of the biodigester.

The projectThe project supports the installation of robust, locally appropriate biogas plants that store 6-10m3 of household livestock waste (from cattle, buffalos or pigs). Through the process of anaerobic digestion, the biogas plants digest manure and recover the methane (CH4) by-product. The biogas is then fed into a cookstove to displace coal as the main household energy source. Aside from the greenhouse gas emission reductions from the fuel-switch, by diverting manure to the biogas plant, the project helps reduce emissions by capturing methane that would otherwise be released into the atmosphere from decomposing manure.

Carbon finance is being used to support the expansion of an existing government scheme, enabling rural, low income households to access the technology by:

n Sharing carbon revenues through direct payment to households to refund a proportion of the biogas digester purchase and installation cost. This revenue is

Carbon finance enables rural, low income households to participate in the province’s biogas programme by providing financial support, totalling roughly 40% of the cost of the biodigester

The project uses carbon finance to enable one million low income, rural households with livestock to access clean and affordable energy.

Biogas is used to fuel cookstoves, displacing coal as the main energy source. As a clean burning fuel this eliminates household air pollution, significantly improving the livelihoods of household members.

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Typical farmland in the Sichuan region.

With a sustainable and affordable energy source (biogas), households report a cost saving through avoided purchase of coal for cooking needs. The project has a clear revenue sharing plan, distributing revenues from carbon sales to participating households, the local rural energy office that provides biodigester servicing, and to the project developers.

Water StewardshipPrior to biogas unit installation, animal waste is typically disposed into surrounding water bodies or into drainage systems in the local villages. The proper storage and recycling of animal manure and organic domestic waste in closed digester tanks has a number of benefits. It reduces bad odours, infectious diseases and water pollution, limits degradation of arable land, and deters pests.

Health and Well-beingThe project replaces solid fuels like coal for household energy needs. Such fuels cause indoor air pollution which can contribute to increased likelihood of illness, including acute lower respiratory infections such as pneumonia in young children, and chronic obstructive pulmonary disease and lung cancer in women (and to a lesser degree in men)1. Biogas produced by the digesters burns cleanly without producing ash or smoke, delivering a significant improvement to the livelihoods of household members. Project surveys have found that eye related problems and respiratory illnesses have decreased in frequency with the installation of the biogas plants.

Empowering WomenBy displacing other fuel types, the biogas plants grant women more time for other activities, as they no longer need to collect firewood or travel to purchase coal. Additionally, in the absence of soot and smoke, women can enjoy a cleaner cooking environment.

Economic GrowthCarbon finance has enabled the existing government biogas promotion scheme to scale its distribution, with almost 60% of all Sichuan rural households supported financially by the project. Eligible households that have been targeted by the project now have access to free energy, and are supporting the transition from solid fuel to clean, renewable energy sources.

Job CreationAcross the entire region, there are over 12,500 staff working on installing biodigesters in rural households as part of the existing government programme. As the project accounts for roughly 60% of all installations in recent years, approximately 7,500 jobs are attributable to the project. The large majority of staff are certified technicians working in service centres or independently, while others work on project monitoring and administration.

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As of April 2015, the project had installed over 395,000 biogas plants across the Sichuan province, with almost 60% of households supported financially by the project

LocationSales and distribution work is done by each region’s energy office across Sichuan, and is supervised and managed by the provincial Sichuan Rural Energy Office (SREO). The installations are located in 13 cities out of a possible 21, including Yibin, Luzhou, Zigong, Neijiang, Leshan, Ziyang, Meishan, Mianyang, Guang’an, Dazhou, Suining, Ganzi (Maerkang) and Aba (Kangding).

1. Desai et al. (2004) Indoor smoke from solid fuels, Environmental burden of disease series No. 4, Available from http://www.who.int/quantifying_ehimpacts/publications/9241591358/en/, Accessed 10/11/2015

Education and TrainingAccording to information provided by the implementing organisations, prior to the project, most of the biodigester and cookstove experts were farmers or bricklayers. Through participation in the project, these people have diversified their knowledge and skillset.

Infrastructure DevelopmentBy providing a free, renewable and clean energy source, this technology significantly improves the quality of homes for those households participating in the programme. Under normal use, the lifetime of the technology is 20 years, but as the parts are resilient and easily replaced, maximum lifetime could be much longer.

RegionThe project is being implemented in a particularly disadvantaged region of China, heavily affected by a major earthquake in 2008 which killed 70,000 people, left five million people without housing, and killed 12.5 million farm animals. With a typical rural income of £400 a year, the Sichuan province contains 43 national poverty counties that qualify for economic assistance from the government.

YUNNANGUANGXI

MYANMAR(BURMA)

SHAANXI

QINGHAI

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1.Kangding2.Maerkang3.Mianyang4.Guangyuan5.Nanchong6.Bazhong

7.Dazhou8.Ya’an9.Chengdu10.Deyang11.Suining12.Guang’an

13.Meishan14.Ziyang15.Leshan16.Neijiang17.Zigong18.Yibin

19.Luzhou20.Xichang21.Panzhihua

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Installations are located in 13 cities out of a possible 21, including Yibin, Luzhou, Zigong, Neijiang, Leshan, Ziyang, Meishan, Mianyang, Guang’an, Dazhou, Suining, Ganzi (Maerkang) and Aba (Kangding).

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By providing a free, renewable and clean energy source, this technology significantly improves the quality of homes for those households participating in the programme