Carbon finance is a mechanism that aims at financing or co-financing low carbon projects in developing countries. However, it 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 (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 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 project is aimed at giving support to project developers to evaluate if their project activity is eligible and feasible under three approved methodologies:
- CDM AMS II.G (Version 3): “Energy efficiency measures in thermal applications of non-renewable biomass”
- CDM AMS I.I (Version 02): “Biogas/biomass thermal applications for households/small users”
- CDM AMS I.E (Version 4): “Switch from Non-Renewable Biomass for Thermal Applications by the User”
- “Gold Standard Technologies and Practices to Displace Decentralized Thermal Energy consumption”
- CDM AMS III.R (Version 2): “Methane recovery in animal manure management systems”
It 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?
(Requirement : Excel 2007 minimum. This tool contains macros)
Technical partners: Global Environmental Institute, Initiative Développement, Nexus – Carbon for Development
Funds: blue moon fund