1. Performance Based Climate Finance Facility (PBC) Alejandro Miranda Velazquez Latin American and Caribbean Forum Carbon (LACCF) Bogotá, September 4, 2014

2. CAF, in cooperation with KfW, develops and implements the Initiative.
Performance Based Climate Finance Facility (PBC)
Background:
CAF, in cooperation with KfW, develops and implements the Initiative.
The development aid funds come from the Latin America Investment Facility (LAIF) of the European Union.

3. Prevent the emission of 1,000,000 tCO2e by December 31st, 2021
Performance Based Climate Finance Facility (PBC)
Objective:
Promote sustainable, low carbon development in the region, through the design and implementation of 2 sector mitigation schemes
The facility has 10 million Euros for the design and implementation of the initiative, 5 million for each initiative
The sectors of interest are: Renewable Power Generation - RE, Energy Efficiency, Municipal Solid Waste Management and Transportation
Goal:
Prevent the emission of 1,000,000 tCO2e by December 31st, 2021

4. Performance Based Climate Finance Facility (PBC)
Description:
The Program will award financial incentives (subsidies) for the implementation of pilot projects that can serve as an example to the entire sector
The incentive will be delivered on an ex-post basis, based on the amount of carbon dioxide the project prevents (e.g. $/tCO2e)
The amount of the incentive depends on the type of technology implemented
The number of projects that receive financial incentives will depend upon their mitigation potential

5. SECTOR MITIGATION MECHANISM
Performance Based Climate Finance Facility (PBC)
Components:
SECTOR MITIGATION MECHANISM
Promotes sustainable and low carbon development in the region
Design of sector schemes and capacity building for implementation
(Technical Assistance € 2 MM)
Design of Implementation Concept
Elaboration of additional studies
Design of MRV Mechanism
Emissions Monitoring and Verification (5 years)
Economic incentives for the implementation of pilot projects
(€ 8 MM)
Grant for X number of projects until the emissions reductions goal is achieved (1 MtCO2e)
Lines of financing or refinancing granted by CAF and / or KfW

6. State Bank (Prosaneamiento) Technical requirements for measuring tCO2e
Performance Based Climate Finance Facility (PBC) Municipal Solid Waste Sector in Ecuador
Financial Mechanism :
State Bank (Prosaneamiento)
European Union (LAIF)
4 Million EUR
Grant
Projects:
Technical closure of dumps
Landfill construction
Others
Loan
Incentive $/tCO2e
(Ex-post) +
Capture and incineration of methane in the Dumps / Landfills
Mechanical / Biological treatment: Composting and Anaerobic Digestion.
Capture of methane for electricity generation
In the future:
NAMA Facility
Green Climate Fund
Bilateral Agreements
Other
MRV
Grants/
Subsidized Loans
Technical requirements for measuring tCO2e

7. Current Status / Progress:
Performance Based Climate Finance Facility (PBC) Municipal Solid Waste Sector in Ecuador
Current Status / Progress:
Pre-feasibility study of the mechanism (Project Idea Note, late 2012)
Signing of the Memorandum of Understanding with the Ministry of Environment of Ecuador (MAE), January 2014
Awarding of the Implementation Concept (August 2014)
Design of the Sector Mitigation Scheme
Identification of the type of activities / technologies eligible to receive the subsidy
Defining the amount of subsidy to deliver according to the type of project
Identification and analysis of the pilot projects
Design of the Measurement, Reporting and Verification (MRV) methods (simpler than for CDM projects)

8. Many thanks for your attention!
Alejandro Miranda
Executive, Climate Change Unit