Clean Development Mechanism (CDM). N/A  N/A



Study on innovative risk coverage and financing of projects related to the implementation of CDM Projects focussing in India and Morocco-Iris Kyoto

Country : Morocco. India.
Client : European Union
Start Date : 2003
Completion Date : 2005
Value of services : 381 585€
Funder : European Union
Associate/Partner : ESD, Projekt Consult, ADEME, EEEC, CIEDE
Description :
The goal of the European project IRIS Kyoto “Innovative Risk Coverage and Financing of Projects related to the implementation of the CDM focussing on India and Morocco” is to address important project development and financing barriers to the successful implementation of the Clean Development Mechanism (CDM) of the Kyoto Protocol, based on a hands on approach to projects. In developing CDM projects, risk analysis and spread, taking into account risk perception and aversion of private players and their related requirements in terms of returns must be revisited, looking not only at the classical project risks but also those related to the mobilisation of carbon finance.
Description of the Actual Services Provided The project will be phased as follows :
* Better define / qualify and quantify specific risk management and financial limitations,
* Define the added opportunities brought by the CDM through the sale of CERs and the involvement of new players,
* Identify tools and opportunities, through real projects in the pipeline, to work out appropriate risk allocation and mitigation instrument and therefore facilitate the financing of CDM projects in the following sectors: renewable energy schemes, energy efficiency in industry and agriculture and mass urban transport,
* Provide sets of recommendations to multilateral and bilateral agencies, governments and private stakeholders on how to use public funds (grants, soft loans and commercial loans) together with private cash flows to minimise risk,
* Disseminate the project recommendations via a series of workshops, website, CD-ROM and publications.

Consultations, discussions and brainstorming sessions will address the viewpoints of the various players. Four workshops will be held: two in Brussels, one targeted to financial partners and on instruments (2004), the other one to disseminate the project results; in Morocco and India, sector specific and with strong involvement of local players, particularly aiming at national capacity building.