Colombia: Furatena Energy Efficiency Project
(Community Development Carbon Fund)
Project Description:
The project contributes to the reduction of GHG emissions from the “panela” (brown sugar) sector, the second largest source of rural employment in the country. The project would make viable improvements in energy efficiency, quality of product, and rural income as well as overall environmental performance of this agro-industry. Once in operation, the project is expected to displace an estimated 133,000 tCO2e by 2017 through the development of a modern, energy-efficient, and centralized manufacturing facility that will replace small, artisan manufacture. The facility will be owned by a company with the participation of small farmers.
Current Context
Currently the economy in the Gualiva region is characterized by small-scale agricultural and livestock production systems that generate very little added value and have a strong environmental impact, particularly due to agricultural and livestock frontiers spreading along steep slopes, logging, and the destruction of ecosystems. Fully 95 percent of the peasants in the region produce sugarcane on smallholdings with inappropriate technologies. Some 58 percent of the population also experiences a high index of unmet basic needs.
Community Benefits
A community benefits plan additional to the main project was prepared at the initiative of the CDCF. The project will provide direct and indirect benefits such as increasing the income of small family-owned farms through increases in land productivity and the proceeds from their participation in the molasses processing plant; training at least 300 farmers on improved sugarcane production practices; providing basic managerial training to 120 small rural farms; using 300 hectares to pilot organic production, which will improve soil conservation cultural practices and create social links among the participants; implementing a land use environmental plan with farmers’ participation and township support; and planting additional biomass as the plant’s main fuel in order to reach zero emissions in the third project year.
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Deliverables
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Description
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Improved agricultural activities
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Project will increase demand for low specialized labor as “organic” practices are implemented. Family labor may need to be complemented by hired labor.
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Efficiency in manufacturing
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Project will increase efficiency in the manufacturing process, decreasing the amount of work conducted at the traditional facilities.
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Industrial processing facility
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Nearly 150 employees will be hired and given access to social services and fringe benefits.
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Improved transport and marketing activities
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Market professionals will sell products to internal and external markets.
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Time Frame: 2008-2014
Community Benefits Budget: $60,000
Monitoring Plan: Social monitoring will be carried out every year during the project. The project entity will have the responsibility to provide the reports to monitor the socioeconomic indicators. These indicators include the number of farmers trained in improved production, the number trained in basic managerial skills, and the number of hectares with organic production.
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