On 7th May 2013, the Sichuan Animal Farms GHG Mitigation Programme of Activities (PoA) was successfully registered with the respected Gold Standard. The PoA with GS ID 1238 had already been CDM registered by end of 2012. Besides the Sichuan Household Biogas PoA, also developed by UPM, it is now the second Gold Standard CDM PoA in China! It has been validated by TÜV Nord CERT GmbH and will be managed, implemented, operated, and monitored by UPM’s highly experienced Chinese cooperation partner Chengdu Oasis Science & Technology Co., Ltd.

The Sichuan Animal Farms PoA is expected to reduce an annual 600.000 tCO₂e of greenhouse gas (GHG) emissions from around 120 livestock farms in Sichuan by replacing the existing animal manure management devices with modern biogas digester systems for the recovery of biogas and utilizing the biogas for the generation of electricity and/or thermal energy. In the baseline scenario, the GHG emissions originate from the storage and treatment of animal manure in open lagoons, where the organic material decays anaerobically and emits large amounts of methane into the atmosphere.

The installation of biogas digesters in livestock farms is encouraged via an existing subsidy scheme by the Chinese central government. Nevertheless, due to high investment cost, operational uncertainty and low income of target participants, the biogas promotion faces significant hurdles in attracting livestock farmers. The objective of the PoA is to overcome these barriers and to help poor farm owners to invest in advanced biogas digester systems and to maintain operation by providing access to carbon finance.

In addition to the GHG emission reductions, the Sichuan Animal Farms PoA will contribute to local sustainable development in various ways, as by:

• Improving the local environment and human health: The programme’s biogas digester treatment of animal waste will reduce organic material in waste water, nuisance of odors, and bacteria. Therefore, it leads to better environmental conditions and better quality of life in rural communities nearby the livestock farms.
• Diversifying energy supply: The PoA will diversify energy sources through biogas production and biogas-based utilization systems. The implementation of the programme can contribute to the reduction of the country’s heavy dependence on coal for electricity generation.
• Application of advanced technology: New, advanced, and clean technologies for the treatment of animal wastes and the associated biogas utilization will be applied. These technologies can be replicated on other livestock farms. This will dramatically reduce livestock-related GHG emissions, provide the potential for new sources of revenue and green power, raise the economic benefits for the livestock industry, promote the utilization of agricultural waste, and hence build a circular economy.

For further information on the Sichuan Animal Farms PoA and the availability of its premium GS CERs, please contact:

Henning Huenteler, General Manager, UPM China
hhuenteler(at)upm-cdm.eu, T: +86 10 6468 0500-16

or

Martin Dilger, Managing Director, UPM Germany
mdilger(at)upm-cdm.eu, T: +49 89 414196-91

For GS information and related documentation on this project, please visit the Markit Environmental Registry.