Assessing the Status and Co-benefits of Clean Development
Mechanism (CDM) Projects in Landfills of Vietnam
Nguyen Thi Ngoc Mai
Postgraduate Student,Graduate School of Life and Environmental Sciences, University of Tsukuba

1. Introduction
The main objective of this paper is to prove for various benefits that a CDM project in solid
waste landfill can provide. In detail, four benefits will be illustrated, including: climate change
mitigation, economical profit, pollution reduction and land conservation. The calculating method
to transfer each benefit into monetary term will be suggested. However, the content of this paper
is a part of the thesis research of first author which is still on-going, therefore only data formarket values will be applied into formulas to get specific results.
With the risk of climate change, along with the increasing of solid waste that Vietnam is facing,
I hope this paper could contribute to the efforts of utilizing waste, improving environment andmitigating climate change effects.
2. Objectives- To demonstrate the CDM projects in solid waste sector as co-benefits approach for climatechange mitigation;- To analyse the effectiveness of the CDM project in the solid waste landfill by identifying fourco-benefits: climate change mitigation, economical profit, pollution reduction and landconservation.
3. Results: Economical evaluation of Co-benefits of CDM Projects in MSW landfills inVietnam
3.1. Selection of case study (Nam Son landfill)
Nam Son landfill, which covers an area of 83.5 ha, is located 50km northern the Hanoi City.
The landfill is one of few landfills in Vietnam that meet the standard of sanitary landfill. Thelandfill started mechanized operation in 2000. The Nam Son landfill was designed to received
3000 tons of solid waste per day, however in reality, the rate of disposed waste often reach to4200 tons per day. Therefore, the Nam Son landfill is overload and being forecasted to be closed
earlier.
Since 2010, the Nam Son landfill has registered for CDM project with a period of 6 years (2010 –2016). The investment cost was 7,951,500. 107 € (around 230 billion VND) and the operation andmaintenance cost is 59,550 €/year (around 10,5 billion VND). However, this project is animportant contribution to mitigate the climate change through reducing greenhouse gas. On theother hand, this project has brought significant benefits from the trade of CERs and electricity
sale, creation of employment as well as positive effects on the local ecosystem and biodiversity.
According to various studies, the landfill gas which contains carbon dioxide, methane,hydrogen sulfide and ammonia is the cause of strong odour. People living in vicinity of landfillsite may get physical symptoms triggered by landfill gas odors like headaches, insomnia andnausea.
With the installation of landfill gas recovery system under the CDM project, a large amount oflandfill gas has been captured, therefore reduce the bad odor, explosion risk and toxic gas
released. However, since the project only covers 40 ha of landfill site, the uncovered area are still
releasing landfill gas that effect negatively local people’s health. Therefore, financial supports arerequired for more installation of landfill gas recovery system, which can help to reduce the risk
caused by landfill gas emission.
3.2. The monertary value of co-benefits of CDM project in case study
3.2.1. Climate change mitigation benefit
When a methane recovery project is implemented in landfill site, the most important benefit isclimate change mitigation. If the methane is captured and used for trading in CDM, the carbon
equivalent reduction can attract revenue from carbon credit.
Estimation of methane generated by the landfill: BECH4,SWDS,y
BECH4,SWDS,y = φ (1-f) * GWPCH4 * (1-OX) * 16/12 * F * DOCf * MCF * ΣΣ Wj,x * DOCj * e kj(y-x)* (1-e-kj) (1)Where:
φ: Model correction factor to account for model uncertainties (0.9)
f: Fraction of methane captured at the SWDS and flared, combusted or used in anothermanner
OX: Oxidation factor (reflecting the amount of methane from SWDS that is oxidized in thesoil or other material covering the waste)
F: Fraction of methane in the SWDS gas (volume fraction) (0.5)
DOCf : Fraction of degradable organic carbon (DOC) that can decompose
MCF: Methane correction factor
Wj,x : Amount of organic waste type j prevented from disposal in the SWDS in the year x(tons)
DOCj: Fraction of degradable organic carbon (by weight) in the waste type j
kj :Decay rate for the waste type j
j: Waste type category (index)
x: Year during the landfill lifetime: x runs from the first year of the landfill opening (x = 1) tothe year y for which avoided emissions are calculated (x = y)y: Year for which methane emissions are calculated
Estimation of the amount of methane recovered and destroyed MDproject,yMDproject,y = BECH4,SDWS,y / GWPCH4* Rr * FE (2)Where:MDproject,y: is the quantity of methane destroyed by flaring taking into account the efficiencyof the degassing system which will be installed in the project activity, converted in tCO2e.

Rr: is the efficiency of the collecting system. The recovery rate is ex-ante estimated as 55%
which is appropriate and conservative considering the physical conditions of the landfill, thecover and the density of wells that will be installed.
FE: is the efficiency of the flaring system. A default flare efficiency of 90% will be used forexante calculations.
 Results (Table 1) (Nam Son landfill CDM PDD, 2010)
Table 1. The estimation of methane recovered and destroyed in CDM project in Nam Son
landfill
Estimation ofEstimation ofYear
BECH4,SWDS,y (tCO2e)
MDproject,y (tCH4)
2010-2011
589,343
13,892
2011-2012
657,178
15,491
2012-1013
732,626
17,2692013-2014
816,362
19,2432014-2015
836,636
19,721
2015-2016
724,811
17,085
2016-2017574,997
13,554Total
4,931,954
116,253
The equivalent value of climate change mitigation benefit are shown through the trading ofCERs on the carbon market, which can be estimated by multiplying the amount of CO2 reducted
due to the projects (MDproject,y) by the price of CER. In the end of 2013, the price of CER in
Europe was around 1.04 €/tCO2 (http://www.eex.com). With the exchange of 1 Euro = 27,462
VND (in 2013) (http://exchangerateweb.com), the total value of CERs trading in 2013 is:116,253* 1.04*27,462 = 3.32*109 (VND)
3.2.2. Electricity trading benefit
Capturing and utilizing landfill gas can bring not only climate change mitigation benefit but
also economical profit from energy generation. According to analysts, a landfill can generate
electricity after going into operation and at least 30 years after the landfill is closed. To calculate
the monetary benefit from electricity trading, the paper uses equations from CDM Project Design
Guideline version 03.1 offered by CDM Executive Board
MDproject,y = CH4 emission*Rr* ηflare (3)Rr: Capture efficiency of the system used in the project activity
ηflare: Flare efficiency (default = 0.9 or 90%)
As taking into consideration the actual conditions of the landfill, covering layer and density ofcollection wells, the capture efficiency is estimated as 55%
ELLFG,y = MDproject,y /CEFelec,BL, (4)ELLFG,y: net quantity of electricity exported during year y (MWh)y: number of years of project (year)
MDproject,y: the amount of methane that would have been destroyed/combusted
during the year in project scenario(tCH4)
CEFelec,BL,y : CO2 emissions intensity of the baseline source of the electricity
displaced (Vietnam) (CO2e/MWh)Currently, there is no published emission intensity of electricity (CEFelec,BL,y) in Vietnam,
therefore, the paper use the average value of emission from a number of power CDM projects(hydro and wind power) in Vietnam which have been successfully registered with theIntergovernmental Committee on Climate Change IPCC as follows (Table 2):
Table 2. Emission intensity of electricity in some power CDM projects in Vietnam
Unit: CO2e/MWh
NoCodeName of project

Registeredday

CEFelec,BL,y12891

Ta Niet Hydro Power Project, Son La

21/11/2009

0,567922627

Nam Pia Hydro Power Project, Son La

05/09/2009

0,562932372

So Lo Hydro Power Project, Hoa Binh

17/08/2009

0,623342367Phu Mau Hydro Power Project, Lao 05/06/2009
Cai0,6233

52371

Muong Sang Hydro Power Project, Son 05/06/2009
La0,6233

62368

Suoi Tan Hydro Power Project, Son La

27/07/2009

0,623372228

Wind Power Plant No.1 - Binh Thuan 06/04/2009
30MW, Binh Thuan

0,644882878

An Diem 2
Quang Nam

0,5104

Hydropower

Project , 14/12/2009

Average

0,5974

We calculate the quantity of electricity exported during the CDM project as follows : (Table 3)
Table 3. Quantity of electricity generated in CDM project in Nam Son landfill
Year2010-2011
2011-20122012-1013

Estimation ofMDproject,y (tCH4)
13,892
15,491
17,269Estimation of ELFGH(MWh)23,25425,931
28,907

2013-2014
2014-2015
2015-20162016-2017
Total

19,243
19,721
17,085
13,554116,253

32,21133,011
28,59922,688
194,598

According to the electricity price of the Vietnam Electricity Group (EVN) under the guidance ofMinistry of Industry and Trade (Circular No.38/2012 / TT-BTC dated 29th December, 2012), theaverage electricity price is 1,437 VND / kWh (excluding tax), equivalent to 1,581 VND / kWh(including tax). Therefore, the value of electricity trade of CDM project in Nam Son landfill siteis:194,598 * 103* 1,581 = 307.66*109 VND
3.2.3. Air quality improvement benefit
The pollution reduction benefit of a CDM project is represented by the reduction of bad odor
and air pollution in the ambient atmosphere of landfill site. Because this is a non-market value so
it will be calculated based on the willingness-to-pay of local people for better air quality andreduction of bad odour through CVM (Contingent Valuation Method)
WTPaverage =(mi * sji)/ sji (5)mi :the offer/bid priceSji :number of people choosing
WTP = WTP average * Total population (6)3.2.4. Land conserve benefit
The installation of methane recovery system at the landfill will increase the decomposition
rate, thus increase landfill capacity (gains more 15% to 30%), consequently mitigate the need tobuild more landfills or expand existing ones (EPA, 2008). The monetary benefit are calculated bymultiply the area of land conserved with land price.
 Calculating the area of land conserved:
According to initial design, Nam Son landfill was estimated to have the capacity of cumulating
34,011,211 m3 of solid waste in 2018 (calculated with a specific weight of solid waste is 0,45 ton/ m3). Due to compressing process, the volume of solid waste will decrease by 3.5 times, of
9,717,489 m3.
Because the presence of methane recovery system can increase the landfill capacity by 15% to30% (average value of 22.5%), so the volume of increased solid waste thank to CDM project is:
9,717,489* 22.5% = 2,186,435 m3
In Section II of the Cicular on the Joint Circular No.01/2001/TTLT/BKHCNMT-BXD guiding forthe selection of location, the contruction and operation of solid waste burial sites: the total heightfrom bottom to top of a landfill slot has to be from 15 – 25m. This study take the average value of
20m. Thus, the area of land conserved is:
2,186,435 : 20 = 109,321.75 m2

 The land price:
According to the Decision No. 63/2013/QĐ-UBND dated 25/12/2013 of Hanoi People’sCommittee, the price of Nam Son Commune (vicinity of Nam Son landfill site) are 550,000
VND/m2 for residential land and 385,000 VDN/m2 for productive/trading land. This study willtake the average value of 476,500 VDN/m2 for the land price of this area.
 So, the value of land conserve benefit is:109,321.75 *476,500= 52.1*109 VND
Conclusion
The co-benefits approach is an effective solution for developing countries to address thedifficulties in obtaining both climate change mitigation and environmental protection, toward thesustainable development. The CDM project in MSW landfill can bring not only benefit in GHGsemission reduction but also environmental improvement and economical profit. However, inVietnam, in spite of large demand and supports for CDM project, there are still many barriers
against the implementation of this mechanism, especially the regulatory barriers.
The paper evaluates four benefits from landfill CDM project in monetary term. With threebenefits that have market-value including: climate change mitigation benefit, electricity trading
and land conserve, the equivalent values estimated are 3.32*109 VND, 307.66*109 VND and52.1*109 VND respectively. About the air quality improvement benefit, as this is a non-market
benefit, the value has to be calculated based on the willingness-to-pay (WTP) of local people fora better air environment. On the other hand, it can be seen that the climate change mitigation
benefit, which is considered as the most importance factor in evaluation process, just consists of asmall proportion in total benefit (0.91%). Therefore, in order to see the comprehensive benefits ofa project on climate change mitigation, it is necessary to take into consideration all potential
benefits of that project, if not a large amount of valuable benefits can be ignored.