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Biowaste to Biogas

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Significance of waste digestion in developing countries<br />

economic and organisational conditions, unless favourable<br />

framework conditions, e.g. sufficient guarantees,<br />

incentives, feed-in tariffs, are provided by local governments.<br />

To tackle these challenges, inves<strong>to</strong>rs and<br />

opera<strong>to</strong>rs therefore need sufficient revenues and price<br />

certainties as a basis for their commitment.<br />

Some extra efforts therefore appear necessary and,<br />

since waste management is a cross-cutting task, a set<br />

of political, institutional, social, financial and technical<br />

conditions must be met if biowaste-<strong>to</strong>-biogas projects<br />

are <strong>to</strong> be successfully implemented. Countries or local<br />

and regional authorities that successfully provide such<br />

favourable framework conditions e.g. by implementing<br />

(national) strategies, providing renewable energy<br />

incentives, offering long-term contracts and ensuring<br />

price certainty for the energy generated, experience<br />

substantial increases in investments in biogas production<br />

from source-separated biowaste.<br />

In that regard, private sec<strong>to</strong>r participation is often a key<br />

driver in any project that initiates a sec<strong>to</strong>r change using<br />

new or sophisticated technologies. Business participation<br />

is valuable in mobilising investment and bringing<br />

in the operational experience needed <strong>to</strong> provide efficient<br />

services. For example, private sec<strong>to</strong>r players can<br />

achieve improved service efficiency and thereby reduce<br />

unit costs. A necessary condition when involving private<br />

stakeholders is <strong>to</strong> guarantee that enterprises can<br />

recover all the legitimate costs they incur (and profits<br />

they make) when financing, setting up and operating<br />

services. Contracting with the private sec<strong>to</strong>r therefore<br />

The German Government, and its relevant ministries are providing<br />

a number of funding and financing <strong>to</strong>ols for German enterprises<br />

that intend <strong>to</strong> jumpstart cooperation with local partners<br />

in developing countries and emerging economies, with the<br />

aim of developing and implementing a biogas project. Amongst<br />

them are programmes by the Federal Ministry for Economic<br />

Cooperation and Development (BMZ) – http://www.bmz.de/<br />

en/index.html), the Federal Ministry for Economic Affairs and<br />

Energy (BMWi – https://www.bmwi.de/Navigation/EN/Home/<br />

home.html), and the Federal Ministry for the Environment, Nature<br />

Conservation, Building and Nuclear Safety (BMU – https://<br />

www.bmu.de/en/). As an example, through the develoPPP.de<br />

programme, BMZ provides companies investing in developing<br />

and emerging countries with financial and, if required, professional<br />

support. Since 2008, the International Climate Initiative<br />

(IKI) of BMU has been financing climate and biodiversity projects<br />

in developing and newly industrialised countries, as well<br />

as in countries in transition. DEG as a subsidiary of KfW Group<br />

provides financing and consultancy <strong>to</strong> private companies investing<br />

in developing and emerging countries. Furthermore, in<br />

order <strong>to</strong> boost climate-friendly technology, DEG (Deutsche Investitions-<br />

und Entwicklungsgesellschaft), a daughter of KfW<br />

Development Bank, is running the programme “Climate partnerships<br />

with the private sec<strong>to</strong>r” on behalf of BMU, which aims<br />

at mobilising players from the private sec<strong>to</strong>r for climate protection<br />

in developing countries and emerging economies, with a<br />

focus on the promotion of technology and knowledge transfer <strong>to</strong><br />

support the development of a climate-friendly economy.<br />

depends on having a reliable understanding of the full<br />

costs involved in privately delivered services ,as well as<br />

the capacity <strong>to</strong> cover these costs from recurrent revenue<br />

streams. Setting clear mandates for the public and private<br />

sec<strong>to</strong>rs and having the appropriate skills in place<br />

on both sides are key.<br />

Animals often have<br />

direct access <strong>to</strong> biowaste<br />

collection in developing<br />

countries<br />

32

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