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Home › Dodgy Deals ›
Dodgy Deal
GALFAD waste management project- CDMIndonesia

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2015-11-01 14:53:10
Photo: -

Project – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

climate@banktrack.org

Last update: 2015-11-01 14:53:10
Why this profile?

What must happen

Private banks should not provide any support to this project, including CDM advisory services.

About
Sectors Oil and Gas Extraction
Location

The GALFAD (Gasification, Landfill gas, Anaerobic Digestion) project located in Bali, Indonesia, is a multi-phase project including the collection of landfill gas (LFG) from an open dumpsite, a 2MW power generator using the recovered LFG, a pyrolysis gasification (incineration) plant to process the dry portion of the organic waste, and an anaerobic digester. Once completed, the project is claiming to generate 9.6MW of electricity, and to reduce greenhouse gases (GHG) by 123, 423 mtCO2e. GALFAD will receive carbon credits from the Clean Development Mechanism (CDM) of the Kyoto Protocol.

The project is at the centre of a garbage controversy in Bali. The people of Bali have a long tradition of using indigenous and easily-composted materials in preparing and serving food. But with the growth of tourism there has been a flood of plastics and other non-compostable materials. This flood of plastics and non-compostable waste is now overwhelming the ability and capacity of the Balinese to deal with the huge amounts of waste. To deal with this crisis, the Indonesian government has turned towards a waste-to-energy project. This project is creating even more controversy with the environmental and social implications it will cause.

Impacts

Social and human rights impacts

Landfill air emissions are toxic and can increase the risk of certain types of cancer. Escaping gases will typically carry toxic chemicals such as paint thinner, solvents, pesticides, and other hazardous volatile organic compounds. Not surprisingly, studies link living near landfills with cancer. Women living near solid waste landfills where gas is escaping, for example, have been found to have a four-fold increased chance of bladder cancer and leukemia.

No matter how technologically advanced a landfill is claimed to be, it will eventually leak and contaminate ground water supply. It is a terrible waste of land, especially in poor countries where millions live in slum areas, unable to afford decent living spaces.

To make matters worse, the GALFAD project will contaminate its surrounding communities not only through its landfill but additionally, through the operation of a gasification plant. Gasification is a staged incineration technology that proponents claim do not have toxic consequences for the environment and communities. In truth, staged incinerators emit comparable levels of toxic emissions when compared with conventional mass burn incinerators. Studies show that dioxins, an extremely toxic class of pollutants, are created in gasification incinerators. Dioxins cause a wide range of health problems including cancer, immune system damage, reproductive and developmental problems.


Environmental and climate impacts

Landfills rely on a constant stream of organic matter to produce methane. In the United States, they are the largest source of anthropogenic methane emissions. Landfill gas systems directly compete with local recycling and composting efforts that offer better use for organic materials.

The project will not only increase greenhouse gas emissions and pollution, it will also destroy a successful and internationally-recognized, locally-managed waste program that has empowered a vulnerable and often unrecognized sector of workers, the informal waste workers.

Funding being given by the CDM to incineration and landfill projects represents a lost opportunity to reduce pollution and help improve the standards of living and welfare of some of the poorest people in the world. Also, funding waste disposal technologies incentivizes further waste disposal - i.e., the destruction of valuable resources that would otherwise have been recovered with significant climate benefits.

Financiers
Institution type
Finance type
Year

Mitsubishi UFJ Securities Co., Ltd.  is the investment banking arm of the Mitsubishi UFJ Financial Group (MUFG), a financial services company which is the largest in Japan measured by assets. The company's headquarters are in Tokyo, Japan.

Companies

PT Navigat Organic Energy Indonesia (PT NOEI)

Indonesia
Website
No companies
Governance
Norms & standards

Applicable norms and standards

Clean Development Mechanism (CDM)
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

Anti-waste activist wins global environmental prize but carbon credits threaten program, increase emissions

2010-09-11 | www.no-burn.org
BankTrack news BankTrack blog Partner news Partner blog

As Tourism Rises in Bali, What to Do With Waste?

2009-05-24 | The New York Times
BankTrack news BankTrack blog Partner news Partner blog

Yuyun Ismawati: Goldman Environmental Prize winner 2009

2009-04-11 | Bali, Indonesia | www.no-burn.org
BankTrack news BankTrack blog Partner news Partner blog

Clean Development Mechanism: dump it, don´t expand it

2008-12-05 | www.no-burn.org
Resources
Documents
Links
2011-07-11 00:00:00

Dodgy deals – CDM incinerator case GALFAD – Bali, Indonesia

NGO document
2011-07-11 00:00:00 | GAIA
2011-07-11 00:00:00

Wasting the Climate: Kyoto Protocol agency supports incinerators

NGO document
2011-07-11 00:00:00 | GAIA
2010-12-11 00:00:00

Incinerators: Myths vs. Facts

NGO document
2010-12-11 00:00:00 | GAIA
2010-07-11 00:00:00

Financing the Demise of Waste Worker Livelihood, Community Health, and Climate

NGO document
2010-07-11 00:00:00 | Ananda Lee Tan, GAIA
2009-07-11 00:00:00

Carbon credits threaten groundbreaking program

NGO document
2009-07-11 00:00:00 | GAIA
2008-10-11 00:00:00

UNFCC: “Avoided emissions from organic waste through alternative waste treatment processes”

Other document
2008-10-11 00:00:00 | UNFCC
2006-09-26 00:00:00

PT Navigat organic energy Indonesia integrated solid waste management (GALFAD) project in Bali

Other document
2006-09-26 00:00:00 | Det Norske Veritas
2005-05-07 00:00:00

CDM project overview: GALFAD

Other document
2005-05-07 00:00:00

Global Alliance for Incinerator Alternative/ Glbal Anti-Incinerator Alliance

NGO focused on stopping incinerator projects

Balifokus

Bali NGO working on local recycling projects

UNFCCC GALFAD page

Updates

2011

2011-07-12 11:26:51 |

GALFAD will receive carbon credits from the Clean Development Mechanism (CDM) of the Kyoto Protocol. The original project proponent was Pt. Navigat Organics Energy (NOEl), in partnership with Mitsubishi UFJ Securities Co., Ltd, but the project was sold in 2009 to Pt. Manunggal Energy. Currently, this project is at a standstill.

To date, only the LFG collection facility has been built. Once all phases are complete, the electricity generation capacity is estimated to reach 9.6MW, and the estimated GHG reductions are estimated at 123,423 mtCO2e.

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