Mass landfilling of waste used to be the most widely accepted alternative among global waste management policies. In the face of accelerating global warming caused by the excessive consumption of fossil fuels and emerging need of alternative energy fo...
Mass landfilling of waste used to be the most widely accepted alternative among global waste management policies. In the face of accelerating global warming caused by the excessive consumption of fossil fuels and emerging need of alternative energy for energy security, however, the global society does no longer consider waste as disposal or treatment material but as one of the most promising renewable energy sources. Amid worsening global environmental problems, Korea enacted the Basic Act on Low Carbon, Green Growth in April 2010 and has been implementing a wide-range of policy measures with a view to mitigating climate change and expanding the use of renewable energy. Among other renewable sources, in particular, waste-to-energy (WtE) is being increasingly recognized across the globe, since WtE facilities treat waste in an environmentally-friendly manner, while, at the same time, producing electricity. In this context, this study evaluated the GHG mitigation effects of WtE methods and examined the possibility of relevant policy measures.
In the study, Korea's greenhouse gas (GHG) emissions from waste generation and treatment were analyzed according to waste type and treatment method. As recommended by IPCC guidelines, it estimated GHG emissions with emissions factors, which explain the correlation between the intensity of the activity and the emission resulting from the activity. Based on the measured GHG emissions, the study investigated the GHG mitigation effects of WtE processes on a scenario basis, reflecting economic feasibility and applicability. After considering the energy conversion possibility of the waste sources generated within the country, the study set up three scenarios. For each scenario, the study measured the amount of power acquired and the amount of GHG emissions reduced and examined economic feasibility and other aspects of the WtE processes on the basis of 2008 statistics, and came to the following conclusion.
First, scenario Ⅰ describes when 75,334 tons of daily wastes, currently subject to simple treatment methods, are converted into energy, the process creates economic values worth 127.7 billion Korean won or the equivalent of 25 million 213 thousand tons of CO2 reduction. In addition, this WtE process is proven economically-reasonable as seen from an approximately 6% of its IRR (Internal Rate of Return) in the fourth year since the establishment of WtE facilities. Thus, the WtE process under scenario Ⅰ will be able to bring green growth into reality by creating economic values, cutting GHG emissions, invigorating local economies, and responding to climate change. Furthermore, if additional social and environmental benefits are taken into consideration, such as decrease of environmental improvement costs and job creation, scenario Ⅰ will be far more effective. Yet, now that the study reviews only the process' profitability as compared to costs for facilities establishment and operation, more specified and closer analysis is required for each WtE project.
Second, unlike the net values of economic gains and mitigation effect, the comparable figures relative to costs rarely rise in proportion to the volume of wastes converted into energy. Scenario Ⅱ, which excludes the wastes for land treatment from the waste sources of scenario Ⅰ, treats a far less volume of wastes, 48,510 tons per day, but its mitigation effect of 48,510 tons per day is similar to that of scenario Ⅰ. This result is attributable to the fact that the treatment on land including mass balanced sewerage treatment and decontamination facilities does not emit much. Furthermore, the WtE process under scenario Ⅱ rather shows a slight increase in the mitigation effect compared to costs from 23.7g CO2/Korean won in scenario Ⅰ to 21.7g CO2/Korean won, while its inter-fuel substitution effect and economic feasibility are lower than those of scenario Ⅰ. That it, the decrease of the total amount of wastes converted into energy lowers the inter-fuel substitution effect, yet has little influence on cutting GHG emissions and saving investment costs. In conclusion, converting the wastes for land treatment into energy does make little economic sense and not lead to further increase in GHG mitigation. On the contrary, it seems a competitive alternative in regard to the GHG mitigation effect compared to costs. Thus, whether to include the waste for land treatment in the WtE process should be determined after a series of reviews and consultations on practical conditions from various angles.
Third, scenario Ⅲ reveals that the conversion of the wastes for incineration reduces a considerable volume of GHG emissions. Under scenario Ⅲ, which converts the waste sources of scenario Ⅱ excluding the wastes for incineration, the WtE process shows a strong mitigation effect of 13 million 353 thousand tons of CO2 reduction, which accounts for about 55% of scenario Ⅱ. This implies a huge amount of GHGs are emitted during the process of incineration, highlighting the urgent need for the conversion of the wastes for incineration. Besides, when it come to economic feasibility, scenario Ⅲ is proven relatively more profitable with a 8% profitability in the fourth year since the start of WtE facilities operation and most cost-effective with a 29.6g CO2/Korean won of mitigation efficiency.
Fourth, this study underlines the necessity for WtE implementation based on the analysis results of the above-mentioned three scenarios. In particular, compared to the energy sector with the mitigation efficiency of 0.44g CO2/Korean won, the WtE mechanism is much more effective in curbing GHG emissions with the mitigation efficiency of 21.7 to 29.6g CO2/Korean won. In order to meet the national goal of expanding renewable energy use and pro-actively responding to climate change, which is the fundamental purpose of WtE processes, scenario Ⅰ with the largest amount of wastes for conversion as well as the strongest mitigation effect may be the answer. Considering practicalities and economic feasibility, however, scenario Ⅲ should be adopted first and gradually expanded to scenario Ⅱ and then to scenario Ⅰ.
Fifth, for the purpose of achieving the national target of curbing 30% of GHG emissions on a BAU basis by 2020, it is essential to measure the mitigation potential of industry, building, transportation and household and, based on the results, specific implementation strategies must be devised. As Korea set the voluntary mitigation target in spite of being a non-Annex country, meeting the target is the national responsibility, which will contribute to enhancing its profile on the global stage. In addition, the Korean government should establish necessary institutions such as carbon trading and relevant policies including economic incentives.
Sixth, considering Korea's industrial structure and energy supply system, the nation should develop WtE facilities for sustainable development. To this end, Korea should lay a legal foundation to build WtE infrastructure and raise the awareness so that waste is considered as an energy source. In addition, the Korean government should raise its investment budget for WtE projects and, at the same time, streamline the relevant procedures regarding financial support, government loans and administrative processes. Moreover, the government should suggest a long-term vision together with action plans, invest in WtE technological development, and, more significantly, continuously communicate with the general public on the importance of renewable energy development.
Lastly, Korea should introduce the carbon trading system as soon as possible to fulfill the national 2020 mid-term target of GHG emissions reduction and to minimize mitigation costs with market mechanism.
In order to better prepare for a new global environment where different carbon trading systems will be integrated, Korea should adopt the cap and trade system and involve not only industry but also various economic players including those from the non-industrial sector. Additionally, the government should facilitate carbon offset projects which will need the active involvement of local governments. Furthermore, it should minimize the carbon offset costs that responsible industrial sites are obligated to bear by allowing non-CO2 reduction credits from forestry, agriculture and waste management to be traded in the authorized carbon market.