Association GERES

CDM Decision Tool

Technical sheet

Technical sheet

 

Period: 2011 - 2012


Financial Partners: blue moon fund


Technical Partners: Global Environmental Institute, Initiative Développement, Nexus – Carbon for Development


Beneficiaries: Small low-carbon project developers in developing countries

 

 

Context

Context

 

Carbon finance is still a far reality to small project developers and even more for those located in Least Developed Countries (LDCs).

 

Development projects that focus on household renewable energy and energy efficiency projects are potentially eligible for the mandatory market (CDM - Clean Development Mechanism) or the voluntary market. However, development practitioners are particularly affected by the challenges of carbon finance. Given their reduced capacity for investment in human resources, they face the challenge of evaluating if carbon finance is an appropriate funding option. This evaluation is becoming more and more complicated and requires specialist input considering the technical complexity of the methodologies.

 

In that context, the carbon finance mechanisms have shown limits to the extent of which it can support a massive deployment of clean technologies for the poorest populations. Projects targeting the poorest populations face too many barriers when it comes to assessing their feasibility.

 

 

The tool

The tool

 

In that sense, the idea of having a decision tool to facilitate the assessment of small scale projects came up in order to reduce the knowledge gap between project developers and carbon finance specialists.

 

The tool answers some of the following questions:
-    Does my project comply with the methodological eligibility criteria?
-    What is the emission reduction potential of my project?
-    What are the transaction costs and the expected revenues?
-    What is the time frame? When will I be able to see the return of my investments?
-    What are the risks related to the project?