Measuring the Co-Benefits of Project Interventions: the Case of Mexico

Measuring the co-benefits of project interventions: The Case of Mexico

ABSTRACT

The Sustainable Rural Development project’s objective is to contribute to the National Strategy on Climate Change mitigation goals by reducing GHG (CO2) emissions through the implementation of Renewable Energy Technologies (RET) and Energy Efficiency Best Practices (EEBP) in the agri-businesses’ productive processes by promoting energy savings, reducing production costs, and increasing profitability.

The project is funded by: (1) a US$50M World Bank Loan (7652-MX), (2) a US$10.5M GEF Grant (TF-93134), (3) FIRCO/SAGARPA’s contributions and, (4) beneficiaries contributions. Due to the project’s success, the World Bank approved a US$50M additional financing (8216-MX), extending the implementation timeframe to 8 years (2009 – 2016).

In terms of climate change mitigation, the project supports four RETs: bio-digesters, grid-connected photovoltaic systems, biogas operated engine-generators/turbines, and solar thermal systems; it also supports EEBP including efficient cooling systems, rehabilitation/modernization of refrigerating chambers, and water pumping efficient systems. To date, the project has supported 1,146 RET/EEBP actions in 915 agri-businesses nation-wide.

The project’s Key Performance Indicators (KPI) measure GHG reductions (Ton CO2e), electric energy savings, and fossil fuel reductions. Both, IPCC and FIRCO/World Bank methodologies are used. These methodologies include information related to the kind of agri-businesses and RET & EEBP characteristics, such as type, size, standards and operational conditions.

Lessons learned from project implementation, have demonstrated that RET & EEBP provide additional impacts to beneficiaries (which are called co-impacts), including environmental, energetic, economic and social aspects. Since 2012, the World Bank and FIRCO´s Project Implementation Team (PIT) developed several activities to determine these additional impacts including case studies, surveys applied to beneficiaries and technology suppliers. Also, the PIT developed some methodologies that will allow co-impacts identification and quantification.

As a result, the following co-impacts are identified:

Ø  Odor and visual pollution reduction, (bio-digesters)

Ø  Wastewater quality improvement;

Ø  Bio-fertilizer production and chemical fertilizers displacement through bio-digesters sludges use;

Ø  Habitat and health improvement;

Ø  Electric power transmission (wheeling);

Ø  Fossil fuel replacement;

Ø  Jobs created/preserved;

Ø  Support to Indigenous and vulnerable groups;

Ø  Training;

Ø  Cost reduction;

Ø  Renewable energy market strengthening,

The outcome of these activities will be shown in a currently developed co-impacts study (final report expected by December 2014), which objectives are:

Ø  To have appropriate information about project operation;

Ø  To identify project progress through quality indicators;

Ø  To meet project goals;

Ø  To develop and efficient monitoring and evaluation scheme, and;

Ø  To achieve investments replicability (both national and international).

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