Productive and Technological Reconversion of Colombia's Panela Sector

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Colombia

Description

Overview
Sector	Agriculture
Focus area	Crops (incl. NO2 from fertilizer use)
Type of action	Strategy/Policy
Scope	National
Stage	Under development
Submitted to UNFCCC registry	Yes
Start of initiative	(no data)

Financing and support details
Financing status	Seeking financing
Total cost	US$ 167 mln
Financing requested	US$ 0.2 mln
Financing received to-date	(no data)
Principal source of financing	Not known
Principal type of financing	Not known
Capacity building required	Yes
Technology transfer required	Yes

Additional information
Proponent(s)	Federación Nacional de Productores de Panela FEDEPANELA (National Association of Panela Producers), Ministry of Agriculture and Rural Development
International funder(s)	(no data)
Organization providing technical support	UNDB LECB Programme
Contact	Carlos Fernando Mayorga Morales

Objective:

The NAMA seeks to implement strategies towards GHG and pollutant reduction across the Panela sector, focusing on three main technology areas: crop processes, mills technological upgrading and use of sub-products.

Activities:
Colombia is the second largest producer of panela in the world, and panela is the second largest agroindustry after coffee in Colombia. The sector provides employment to 350,000 families in 70,000 farms and 22,000 panela mills – making it the main source of job generation in rural areas in Colombia. However, there is significant opportunity to increase the competitiveness of the sector by reducing energy use whilst reducing its environmental impact.

The general objectives are:

1. Productive transformation of crop processes

• Plant resettlement and soil renewal through production intensification, increasing vegetation cover, reducing soil instability and increasing uptake of CO2.
• Efficient use of nitrogen fertilizers
• Planned crop burning prevention
• Establishment of native binders’ fields
• Dendroenergy development based on native forests

2. Mills technological upgrading

• Implement Thermal recirculation processes
• Bagasse feeders’ implementation to eliminate residence time and methane emissions
• Replacing internal combustion engines with electric ones
• Wastewater treatment implementation for crop irrigation systems

3. Use of sub-products

• Residual biomass from harvesting process as an energy source for mill stoves
• Residual biomass for animal feed, agricultural production (mushrooms) and/or animal production (pigs bed).

Impact and MRV

Cumulative GHG reductions: 0.416 MtCO2e

Mitigative capacity:

No information has been provided on mitigative capacity

Co-benefits:

Social:	* improved health conditions better hygienic conditions of the farm due to the reduction of the bagasse
Economic:	* increased profitability of agricultural smallholdings cost production reduction
Environmental:	* reduced flood risks reduced deforestation

MRV Framework:
No MRV plan has been defined

The estimate cost for finishing the NAMA design is $USD200,000 and includes the development of studies to implement GHG from crop processes, full GHG baseline and projected emissions scenarios, the MRV plan and the design of detailed activities for each region prioritized by the project.