The project will assist local risk management consultants to access a greater share of the annual amount of $2 billion to $3 billion being traded through the Kyoto Protocol’s Clean Development Mechanism. This move will ensure the commercial feasibility of African project developers’ ventures.
Carbon limits managing director Taurleif Haugland said the project came in the right time as discussions on new international protocols and structures for financing climate change mitigation as well as carbon finance are ongoing.
The bank believes that this project will help shine light on the potential implications that continuing dialogues have on policies.
The bank will administer the project together with the agencies for energy, environment and climate change and private sector and microfinance.
The project is supported by a grant from the Fund for African Private Sector Assistance, a component of a billion-dollar collaboration between Japan and the African Development Bank to promote private sector development in Africa.
Since the fund’s creation in 2006, Japan has contributed $32 million to the fund, while the bank has contributed $10 million. To date, the fund’s commitments total to about $29 million, covering 33 projects across Africa.
Masahiro Kan, Japan’s executive director at the bank, said the carbon support project will aid the bank, regional members and borrowers to locally implement the C.D.M.
The United Nations estimated that Africa accounts for about 2 percent of more than 2,060 registered C.D.M. projects in 63 countries worldwide, with 122 projects registered and under consideration in 2010. This was a significant increase from only 42 projects registered in 2007.
Uganda was the first African nation to register a municipal waste compost program under C.D.M. just early this year. The program promoted solid waste composting in urban areas aimed at reducing methane emissions.
