Report · Printed book
Guidebook to financing CDM projects
UNEP Risoe Centre on Energy, Climate and Sustainable Development (URC), Systems Analysis Division, Risø National Laboratory for Sustainable Energy, Technical University of Denmark1
Systems Analysis Division, Risø National Laboratory for Sustainable Energy, Technical University of Denmark2
Risø National Laboratory for Sustainable Energy, Technical University of Denmark3
One of the challenges facing Clean Development Mechanism (CDM) projects today is their limited ability to secure financing for the underlying greenhouse gas emission reduction activities, particularly in the least developed countries. Among the key reasons for this is the fact that most financial intermediaries in the CDM host countries have limited or no knowledge of the CDM Modalities and Procedures.
Moreover, approaches, tools and skills for CDM project appraisal are lacking or are asymmetrical to the skills in comparable institutions in developed countries. Consequently, developing country financial institutions are unable to properly evaluate the risks and rewards associated with investing or lending to developers undertaking CDM projects, and therefore have, by-and-large, refrained from financing these projects.
In addition, some potential project proponents lack experience in structuring arrangements for financing a project. This Guidebook - commissioned by the UNEP Risoe Centre as part of the activities of the Capacity Development for CDM (CD4CDM) project (http://www.cd4cdm.org) - addresses these barriers by providing information aimed at both developing country financial institutions and at CDM project proponents.
It should be noted that while the Guidebook was developed particularly with the CDM in mind, most sections will also be relevant for Joint Implementation (JI) project activities. For more detailed information on JI modalities and procedures please consult: http://ji.unfccc.int The purpose of this Guidebook is two-fold: 1) To guide project developers on obtaining financing for the implementation of activities eligible under the CDM; and 2) To demonstrate to developing country financial institutions typical approaches and methods for appraising the viability of CDM projects and for optimally integrating carbon revenue into overall project financing.
Language: | English |
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Publisher: | Risø National Laboratory, UNEP Risø Centre |
Year: | 2007 |
Pages: | 104 s. |
Series: | Nei-dk--4957 |
ISBN: | 8755035949 and 9788755035942 |
Types: | Report and Printed book |