In conversation with Mr. Adisorn Chieu, CDM project owner from Cambodia

The Angkor Bio Cogen (ABC) project operates a 2 MW new rice husk power generation plant in the Kandal province of Cambodia. The ABC project is a Cambodia Clean development Mechanism (CDM) project and the first renewable energy project in Cambodia to utilize rice husk as biomass fuel for electricity generation.

The Clean Development Mechanism (CDM) recently reached two exciting milestones: 1) its millionth cancellation on the UN Carbon Offset Platform; and 2) its 2-billionth CER issuance. 

To celebrate these milestones and to showcase the CDM in action on the ground, we bring you highlights from a conversation with Mr. Adisorn Chieu, project owner of the Angkor Bio Cogen (ABC) project, the first renewable energy project in Cambodia to utilize rice husk as biomass fuel for electricity generation.  The project operates a 2 MW new rice husk power generation plant in the Kandal province of Cambodia. 

The Regional Collaboration Centre (RCC) Bangkok supported Mr. Chieu, upon his request, during the latest verification by providing him information on the process as well as on the EB decisions regarding the accreditation of the designated operational entity (DOE) he was engaged with. This helped Mr. Chieu take steps towards accomplishing the verification and consequently issuing and receiving the certified emission reductions (CERs). 

Mr. Chieu also sought help finding opportunities to locate buyers for his remaining CERs after his purchasing agreement had ended.  RCC Bangkok connected him to the UNFCCC Climate Neutral Now team, who helped him list the CERs on the UN Climate Change carbon offset platform.  

Since listing his project on the platform in June of 2019, Mr. Chieu has successfully sold approximately 6,500 tonnes of CERs in 121 transactions, ranging from 1 tonne to 1,500 tonnes, all within seven months following the listing. CERs of the project are currently offered and sold at USD 3.50.

In the absence of this project activity, the Angkor Rice Mill would have used diesel oil to generate electricity for its operation. Instead, the project has not only contributed to reducing greenhouse gas (GHG) emissions by providing the electricity from biomass power plant to the Angkor Rice Mill but it also brings social benefits to the community around the plant by providing a small volume of electricity to the neighboring villages at a relatively small charge, thereby replacing the need for diesel oil or batteries. 

Furthermore, the project is opening a channel for the transfer of technology and know-how to Cambodia by bringing state-of-the-art rice husk power generation to the country for the first time.  The project further contributes to the reduction in air pollution and sustainable use of land resources. Finally, this project showcases the alignment of the power sector investment in Cambodia with the objectives in the country’s renewable energy strategy and plan and the countries first NDC with the goal of increased decentralised connection of renewable generation to the grid.

Read on for more on his experience with RCC Bangkok, the CDM, and voluntary cancellations.

(Conversation edited for clarity)

What made you decide to undertake a project under the Clean Development Mechanism (CDM)?
The CDM offers an honorable opportunity to demonstrate a pathway to sustainable development for Cambodia. Taking part in this global effort within the international community is a big added value to the project, and is helping the project break through financial and other barriers, especially in a least developed country like Cambodia.

Why did you decide to list your Certified Emission Reductions (CERs) on the Voluntary Cancellation Platform (VCP)? 

Considering the current options, the VCP is one of the best channels to reach people from around the globe who care about the issue of climate change.  Our participation in the CDM, enabling concerned people to contribute through the VCP, the increasing awareness among the networks of CDM and VCP stakeholders, all this together multiplies the effectiveness of the response to the environmental crisis.  The VCP creates the opportunity for individuals, anyone, even people with limited financial resources to access this global initiative.

Moreover, after the decline in the carbon market price there are very few ways to trade CERs effectively, and VCP is one of the easiest and most effective ways among the available options.

What has been your experience using the VCP? What have been the benefits and challenges of listing your CERs on the VCP?

VCP allows anyone to purchase even one ton of CERs. This means that even if you have less than five dollars in your PayPal account, you can still demonstrate your commitment to the planet. Our sales range from one ton per purchase to around one thousand tons, coming from corporations and individuals. 

The application on the website is not complicated. The transactions are guaranteed to be secure. Easy operation. Automation. With the help of officers at UN Climate Change secretariat and RCC Bangkok, registration and listing was easy.

Will you continue to use the VCP/recommend it to other project proponents and developers?

We will definitely continue with the program. And we recommend all CER holders and people/organizations interested in climate change to participate in the VCP.

What has your experience been working with the RCC Bangkok?  What added value has the RCC Bangkok brought to you?

RCC Bangkok is a team full of effective people who are there to assist project owners who may run into issues from time to time. They are caring and can direct questions and problems to the correct people in the vast community and complex and sophisticated system of the Clean Development Mechanism. They can advise not only on procedural issues, protocols, designated operational entities (DOEs), designated national authorities (DNAs), but also support the selling of CERs, match making and connecting you to the CDM Executive Board.