1. State and Trends of CDM Markets in Central America
David Rusnok
KfW Carbon Fund
Tel: 0049 – 69/ or or

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

3. 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.

4. 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.

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

6. 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

7. 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.

8. 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

9. 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 KfW purchases CERs
Picture: OneCarbon

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

11. 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!

12. Thank you - muchas gracias - obrigado
For more information:
David Rusnok
KfW Carbon Fund
Tel: 0049 – 69 / or or