UN partners with African bank to boost participation in clean development projects
The agreement, signed by the UN Framework Convention on Climate Change (UNFCCC), will establish a regional collaboration centre in Kampala, Uganda, that will support the identification of projects under the Clean Development Mechanism (CDM), provide assistance for their design, and offer opportunities to reduce transaction costs.
The Mechanism allows emission-reduction projects in developing countries to earn certified emission reductions – or CERs – which can then be traded, sold and used by industrialized countries to meet environmental targets. Each CER is equivalent to one ton of carbon dioxide.
According to UNFCCC, there are more than 6,000 registered projects in 83 developing countries. Uganda is one of the leading nations on the use of the Mechanism, with 12 projects currently registered in the country.
This is the second regional collaboration centre established by the UNFCCC and a regional development bank in Africa. The first centre was established a few months ago in Lomé, Togo, in collaboration with the Banque Ouest Africaine de Développement and provides assistance in the development of CDM projects in Francophone Africa.
“The two regional collaboration centres in Lomé and Kampala are designed to help Africa increase its attractiveness and potential for CDM. Our goal is to build capacity, reduce the risk for investors in such projects and help make the continent an increasingly attractive destination for CDM projects,” said UNFCCC Executive Secretary Christiana Figueres.
The centre in Kampala will open in May, and is expected to provide hands-on support to governments, non-governmental organizations and businesses interested in developing CDM projects in more than 20 countries in the region.