1 / 12

History and Objectives of the Prototype Carbon Fund

History and Objectives of the Prototype Carbon Fund. PCF Objectives. Show how CDM/JI contributes to sustainable development Provide UNFCCC Parties, private sector, and others a “learning-by-doing” opportunity in development of rules for achieving ERs under CDM and JI;

nigel-west
Download Presentation

History and Objectives of the Prototype Carbon Fund

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. History and Objectives of the Prototype Carbon Fund

  2. PCF Objectives • Show how CDM/JI contributes to sustainable development • Provide UNFCCC Parties, private sector, and others a “learning-by-doing” opportunity in development of rules for achieving ERs under CDM and JI; • Demonstrate public-private partnership for addressing global environmental problems through market-based mechanisms

  3. Features of the PCF • Closed-end Mutual Fund structure with diverse portfolio to: • Minimize Project Risks • Reduce Transactions Costs • Enhance the Learning Experience • Shareholding: Governments, $10 m; Companies, $5 m • Total Capital: US$145 million to be used in ~ 30 projects • PCF Products: • Competitively priced, high quality emissions reductions • target portfolio wide outcome price: ~$5/tCO2 ($20/tC) • target deal price: $2.5-3.5/tCO2 (~$9-12tC) • High value knowledge asset: create competitive advantage for corporate investors and efficient market regulation and leverage for sustainable development for Parties

  4. Key Demonstration Effects … that investments under CDM/JI can: • Earn export revenue for Developing Countries/Transition Economies engaging in the new ER commodity trade • Increase the profitability of cleaner more efficient technology in energy, industry, and transport sectors • Contribute to sustainable development … and how private sector and governments can implement the CDM/JI project cycle and compete in emerging carbon market

  5. PCF Subscribers ($145 million) Public Sector(6) Governments of Netherlands, Finland, Sweden, Norway, Canada, and Japan Bank for International Cooperation Private Sector: (17) RWE - Germany, Gaz de France, Tokyo Electric Power, Deutsche Bank, Chubu Electric, Chugoku Electric, Kyushu Electric, Shikoku Electric, Tohoku Electric, Mitsui, Mitsubishi, Electrabel, NorskHydro- Norway, Statoil -Norway, BP-Amoco, Fortum, RaboBank, NL

  6. Host Country CommitteeMembers Joined/Signed MOUs Joining through endorsing Projects • Togo • Zimbabwe • Uganda • Morocco • Nicaragua • Honduras • Peru • Senegal • Burkina Faso • India • Poland • Swaziland • Kazakhastan • Latvia • CzechRepub. • Argentina • CostaRica • Guatemala • Brazil • Mexico • El Salvador • Guyana • Uruguay • Hungary • Colombia • Belarus • Bulgaria • Chile • Kenya • Romania • Thailand

  7. PCF Status and Focus Deal flow far exceeds funding - several carbon contracts now under negotiation • >50 deals with $350m+ carbon purchases under review • Targeting signed Emissions Reductions Purchase Agreements (ERPAs) • by end 2001 15 deals of $45-50mm in Chile, Costa Rica, Nicaragua, Brazil, India, Uganda, Romania, Morocco • by July 2002~$35mm in Guatemala, Argentina, Honduras, Thailand, El Salvador, Belarus, Nicaragua, Czech; • Under review or on hold for FY02 ~$40mm: China, Kazakhastan, Belarus, Guyana, Hungary, Poland • Constraints: FMU and country capacity, quality of asset

  8. PCF’s Plans for ER Purchases: July 01-June 02 Total = $118 million, Eastern Europe: $41 million

  9. Indicative PCF Portfolio in EIT/CIS

  10. High Learning Value in StreamliningTransaction Costs • Demonstrating sectoral or multi-project baseline, bulk validation and verification and certification to lower transaction costs of deliveirng carbon finance • Hungarian projects through Dexia-Fondalec for manufacturing plant heat recovery/cogeneration • Poland: several small-scale district heating coal to geothermal/biomass fuel plants • Czech: very small scale large volume energy efficiency measures e.g. building insulation, lighting, metering

More Related