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Page 1
Colombian NAMA for the domestic refrigeration
sector
Dr. Jonathan Heubes
HEAT GmbH / Proklima
4 June 2015
Page 2
Colombian NAMA Proposal – The third Call
The NAMA facility
Agenda
Background information and scope
Manufacturing, distribution and recycling
Stakeholder, cooperation structure and political framework
Project impact and cost-effectiveness
Page 3
http://www.nama-facility.org
Page 4
Background
24/06/2015
Joint set up by the German Federal Ministry for the Environment, Nature
Conservation and Nuclear Safety (BMU) and the UK Department of
Energy and Climate Change (DECC)
KfW and GIZ together provide a Technical Support Unit (TSU)
About € 71 million of funding (first call, August 2013)
About € 50 million of funding (second call, July 2014)
Up to € 85 million (third call, July 2015)
Page 5
Colombian NAMA Proposal – The third Call
The NAMA facility
Agenda
Background information and scope
Manufacturing, distribution and recycling
Stakeholder, cooperation structure and political framework
Project impact and cost-effectiveness
Page 6
The Colombian refrigerator proposal: basic information
• Project title: „Colombian NAMA for the domestic refrigeration sector”
• Based on previous preparatory work from a study conducted by CCAP
• Adopted and includes new elements so as to maximise funding chances
• Submitted by: Ministry of Environment and Sustainable Development of
Colombia by 15th July 2015 latest
• First NAMA in the refrigeration and air conditioning sectors
• The NAMA fits in the Colombian LCDS
• Various environmental, social and economic benefits
Page 7
Domestic fridges
Refrigerant CFC-12 HFC-134a R-600a (butane)
Blowing agent CFC-11 (foam) HCFC-141b Pentane
ODP 1 0 0
GWP CFC-12 = 10,900
CFC-11 = 4,750
HFC-134a = 1,430
HCFC-141b = 725
3
Energy consumption
(kWh/y) 885 847 427
Total emissions over life
time (tonnes CO2eq) 9.3 6.6 3.2
NAMA
Page 8
The amount of fridges in Colombia
Año Con SAO Con HFC
2010 3,725,020 6,703,508
2011 3,206,217 7,652,228
2012 2,680,797 8,669,916
2013 2,265,352 9,781,936
2014 1,699,014 9,453,922
2015 1,245,944 8,986,186
85 % of fridges in Estratos 1, 2 y 3
Page 9
Scope and elements of the NAMA
BANCO COLPATRIA/CODENSA
Low-IncomeHouseholds
Recycling
Manufacturer andImporter
Production of green
fridges
Promote distribution
of green fridges
Return of old fridgesProper recycling of
old fridges
Page 10
Colombian NAMA Proposal – The third Call
The NAMA facility
Agenda
Background information and scope
Manufacturing, distribution and recycling
Stakeholder, cooperation structure and political framework
Project impact and cost-effectiveness
Page 11
Manufacturing - Conversion of production lines
• 3 important participating manufacturers: Replace R-134a with R-600a and
improve efficiency
• Mabe: R-134a
• Haceb: already converted to R-600a (in the year 2012)
• Challenger: R-134a
Page 12
Promoting the distribution
• Incentives to distribute green fridges (estrata 1,2 and 3)
• Codensa / Colpatria
• Familiar with characteristisc of estrata 1,2 and 3
• Easy credit
• „CARAVANA CODENSA“, possibly including fridges
• Using the collection system established under RED VERDE
• On-bill financing
Page 13
Proper waste management
Coordination: RED VERDE
• Part of the "post-consumer project" by ANDI (National Business Association of
Colombia)
• Administer financial contributions from importer/manufacturer (EPR scheme)
Collection system
• Logistic companies to collect old fridges from households, alternatively using 5
collection points in Bogotá
• To be extended during NAMA
Recycling
• Environmental companies for dismantling of old fridges (refrigerant and foam)
• To be extended during NAMA and assessing technological upgrades
Page 14
Colombian NAMA Proposal – The third Call
The NAMA facility
Agenda
Background information and scope
Manufacturing, distribution and recycling
Stakeholder, cooperation structure and political framework
Project impact and cost-effectiveness
Page 15
Key stakeholder
Ministry of Environment and Sustainable
Development (MADS Colombia)
Technical Ozone Unit
(UTO)
Climate Change
Department
Ministry of Mines and Energy (MME-
Colombia)
Energy Department
GIZ GmbH with FC partner
BANCÓLDEX
Delivery Organisation financial component (FC)
Deutsche Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH
Delivery Organisation technical component (TC)
• Ministry of Commerce, Industry and Tourism
• Planning Unit (UPME) and National Business Association of Colombia (ANDI)
• Manufacturers: HACEB S.A., MABE COLOMBIA S.A.S., CHALLENGER S.A, INDUSEL S.A.
• Importer: WHIRLPOOL, SAMSUNG, LG, PANASONIC
• EPR and waste mangement: RED VERDE; WEEE managers
• Promoting green fridges: Codensa, etc.
Implementing partners
Political partner
Page 16
Cooperation structure
Project Steering Committee
(GIZ, BANCÓLDEX, MADS,
MME, MCIT, UPME, ANDI,
private sector)
Technical
component
(by GIZ, MADS)
Conversion of production, replacement, EOL management, policy measures, awareness
MRV, Project M&E and Reporting
Administrative
support
(by GIZ, MADS)
Financial component
BANCÓLDEX/RED
VERDE/Commercial
Banks /Utilities
NAMA Facility
National Green
Replacement Fund
Committee
Page 17
Political framework to enforce NAMA
• Law 1672 (WEEE)
• Decree (currently evaluated)
• Resolutión (currently evaluated)
• Energy labelling scheme for domestic refrigerators (still needs acceptance from
WTO)
• MEPS based on energy labellig scheme
• Planned: Ban of HFC-134a in the domestic refrigeration sector
Page 18
Transformational change
• Transformation of the entire domestic refrigeration sector
• Manufacturing
• Distribution
• Waste management
• Policy framework: Labelling, MEPS, ban of HFC in the dom. refrigeration
• Highly replicable in other RAC sectors
• First step towards a HFC phase-down
Page 19
Colombian NAMA Proposal – The third Call
The NAMA facility
Agenda
Background information and scope
Manufacturing, distribution and recycling
Stakeholder, cooperation structure and political framework
Project impact and cost-effectiveness
Page 20
Proper waste management of one CFC fridges will reduce emission by
• 3.77 t CO2eq per fridge
Project impact – Emission reduction
Replacing R-134a units by R600a units 2016 2017 2018 2019 2020 SUM (t CO2eq)
R-134a sales figures 1,121,956 1,141,590 1,161,568 1,181,895 1,202,579
Percent to be converted during NAMA 0% 100% 100% 100% 100%
Savings over the life time (t CO2eq) 0 3,828,420 3,895,417 3,963,587 4,032,949 15,720,372
Placing one green fridge on the market instead of HFC-fridge will reduce emission
by
• 3.35 CO2eq over life time (assuming life time of 20 years)
Proper waste management 2016 2017 2018 2019 2020 SUM (t CO2eq)
Recycled units 50,000 50,000 100,000 100,000
Emission savings (t CO2eq) 0 188,625 188,625 377,250 377,250 1,131,750
Page 21
Long-term mitigation potential of domestic refrigeration NAMA
Direct emission reduction p.a. by 2030 (Mt CO2eq), refrigerant 0.25
Indirect emission reduction p.a. by 2030 (Mt CO2eq), energy efficiency 3.51
Total emission reduction p.a. in 2030 (Mt CO2eq) 3.76
Page 22
Cost-effectiveness
Policy Production
Lines Take back Servicing/
training NAMA National
con-
tributions
Total
volume Leverage
Financial component FC 1 4 5
Technical component
TC 1 0.5 1 0.5 3
Private Co-financing 72 72
Private Manufacturers 2 2 Private End-Users 6 6 Public Co-financing XX 11 11 Total 1.0 14.5 83.8 0.5 8 92 100 11
Emission savings (production conversion): 15.7 Mt CO2eq (over life time)
Emission savings (waste management): 1.1 Mt CO2eq
Cost-effectiveness: ~ 0.5 €/t CO2eq
Mio €
Page 23
Contact:
Internet: www.giz.de/proklima
Thank you for your kind attention!
Page 24
Proper waste management of one CFC fridges will reduce emission by
• 3.77 t CO2eq
Project impact – Emission reduction
Replacing R-134a units by R600a units 2016 2017 2018 2019 2020 SUM
Total sales figures 1,335,662 1,359,036 1,382,819 1,407,018 1,431,641
R-134a sales figures 1,121,956 1,141,590 1,161,568 1,181,895 1,202,579
R 600a sales figures (16% of total sales figures) 213,706 217,446 221,251 225,123 229,063
Percent to be converted during NAMA 0% 100% 100% 100% 100%
R 600a units to enter the market instead of R-134a 0 1,141,590 1,161,568 1,181,895 1,202,579
Annual emission savings durign project period 0 191421 194771 198179 201647 786,019
Savings over the life time of the project 0 3,828,420 3,895,417 3,963,587 4,032,949 15,720,372
Placing one green fridge on the market instead of HFC-fridge will reduce emission
by
• 0.17 t CO2eq annually
• 3.35 CO2eq over life time (assuming lifte time of 20 years)
Proper waste management 2016 2017 2018 2019 2020 SUM
Recycled units 50,000 50,000 100,000 100,000
Emission savings 0 188,625 188,625 377,250 377,250 1,131,750
Page 25
Calculation of interest
Costs per Refrigerator (incl VAT) 331.35
Goverment subsidy (Reduction of VAT) 0% 0.00
Energy savings p.a. 67.43
Credit 80% 265.08
Interest p.a. 5% 13.25
Credit default fee to NAMA guarantee fonds on
purchasing price (paid per year) 1% 3.31
Time to repay in a 5
Credit repayment pa (interest and principal
repayment) 61.23
Total repayment service on bill 64.54
Savings 2.89