State and Trends of CDM Markets in Central America

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Presentation transcript:

State and Trends of CDM Markets in Central America David Rusnok KfW Carbon Fund Tel: 0049 – 69/7431-1730 or - 4775 david.rusnok@kfw.de or carbonfund@kfw.de www.kfw.de/carbonfund

Status quo CDM in Central America Contents KfW in brief Status quo CDM in Central America Trends

KfW Bankengruppe in brief Promotional bank of the Federal Republic of Germany. Founded in 1948. Shareholders: Federal Republic of Germany (80%), German federal states (20%). Headquarters: Frankfurt am Main. Representative offices: more than 50 offices and representations worldwide. Balance sheet total at year-end 2007: EUR 354 billion. Average number of employees in 2007: 3,700. Rating: AAA/Aaa/AAA.

KfW Carbon Fund in brief Launched in 2004. 24 employees, representatives in Costa Rica and Brazil Funds managed by KfW: (1) KfW Carbon Fund: closed (EUR 84 million). (2) EIB/KfW Carbon Programme: EUR 100 million. (3) Belgian Government: EUR 25 million. (4) EIB Post-2012 Carbon Fund: EUR 100 million. 30 contracts signed: in South America: 4 (landfill, biomass). in Central America: 1 (Costa Rica, INOLASA). 21 employees, thereof 1 local representative in Central America. KfW Carbon Fund: Closed (EUR 84 million, contracted). Participants from Germany, Austria, France and Luxemburg. KfW contribution: EUR 10 million. German government contribution: EUR 4 million.

Status quo CDM in Central America Contents KfW in brief Status quo CDM in Central America Trends

Status quo CDM in Central America Number and type of registered CDM projects Registered CDM projects in Central America: 41 Honduras: 14. Guatemala: 6. Costa Rica: 5 (+ 1 under review). El Salvador: 5. Panama: 5. Nicaragua: 3. Cuba: 1. Dominican Republic: 1. Jamaica: 1. Belize: none. Haiti: none. Source: UNFCCC

Status quo CDM in Central America Selection of emission factors in the region Guatemala: 0.71 tCO2/MWh El Salvador: 0.69 tCO2/MWh Honduras: 0.67 tCO2/MWh Nicaragua: Costa Rica: 0.15 tCO2/MWh Panama: 0.63 tCO2/MWh Cuba: 0.91 tCO2/MWh Dominican Republic: Source: UNFCCC. Note: Emission factors vary according to baseline year and data.

Status quo CDM in Central America Qualitative rating of CDM investment climate in Central American countries (by DEG*) Good Satisfactory Fair Insufficient Poor * DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH

KfW project INOLASA, Costa Rica Project description: Installation of a new biomass boiler to replace a coal-fired system. Coal will be replaced by palm kernel shells, empty fruit bunches and other renewable biomass. The project is estimated to reduce a total of 270,000 tCO2 during the crediting period. Project participants: Costa Rica, Industrial de Oleaginosas Americanas S.A. (private entity). ERPA signed 2007. KfW purchases CERs 2008-2012. Picture: OneCarbon

Status quo CDM in Central America Contents KfW in brief Status quo CDM in Central America Trends

Trends Professional Designated National Authorities and project developers. Sellers with high price expectations. Many good ideas….but no equity. Big potential for renewable energy CDM projects, such as biomass, hydro and wind, but: Post-Kyoto regime unclear; Low emission factors; Challenges for private sector to build and operate RE projects. Conclusion: Small but good projects!

Thank you - muchas gracias - obrigado For more information: www.kfw.de/carbonfund David Rusnok KfW Carbon Fund Tel: 0049 – 69 /7431-1730 or - 4775 david.rusnok@kfw.de or carbonfund@kfw.de www.kfw.de/carbonfund