U.N. providing loans to C.D.M. projects in underdeveloped countries
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- Category: Carbon Market
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22 Apr 2012
- Published on Sunday, 22 April 2012 19:58
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A new loan scheme to support Clean Development Mechanism projects in underdeveloped countries was launched by three United Nations agencies at the African Carbon Forum last week in Addis Ababa, Ethiopia.
The scheme will provide interest-free loans for C.D.M. projects in underdeveloped countries as well as countries that have fewer than 10 registered C.D.M. projects.
The loans will provide financing for a project to get its C.D.M. validation and registration and see it through the verification process. After it is validated and registered as a C.D.M. project, it can then generate certified emission reduction credits which can be traded in carbon markets.
The scheme is run jointly by the United Nations Framework Convention on Climate Change, the United Nations Environment Program Risoe Centre and the United Nations Office for Project Services.
U.N.F.C.C.C. Executive Secretary Christiana Figueres said the launch of the loan scheme is both timely and relevant as the European Union Emission Trading Scheme will only accept Certified Emissions Reductions from the underdeveloped countries starting next year. With most of these countries found in Africa, she said the scheme "has come at the right time and to the right place."
"The C.D.M. Loan Scheme is a chance to improve the access to and spread of the C.D.M., particularly in Africa," Ms. Figueres said. "I hope during next year's Africa Carbon Forum, we will see the positive impact this scheme has made towards ensuring the active participation of the continent in the C.D.M."
C.D.M. projects help reduce greenhouse gas emissions and contribute to sustainable development and technology transfer, which could benefit the economies of developing countries. – EcoSeed Staff
