Africa gets larger share of over $3m UN loan for CDM projects
Africa will receive a large share of an over $3 million interest-free UN loan to undertake about 17 Clean Development Mechanism (CDM) projects.
A newly launched loan scheme aimed at increasing the number of CDM projects in developing countries has authorized the funding of more than $3 million towards 23 CDM projects, the UN said September 12, 2012.
This is the first round of loans to be disburse under the scheme, it said.
The loan scheme, jointly run by the UN Office for Project Services (UNOPS) and the UN Environment Programme (UNEP) Risoe Centre on behalf of the UN Framework Convention on Climate Change (UNFCCC), provides interest-free loans for CDM projects in least developed nations with fewer than ten registered CDM projects.
According to the UNEP, a bulk of the selected projects came from Africa, “with 17 of the 23 projects located on the continent”.
In a statement, the UN agency said the selected projects are very diverse – ranging from household-level energy efficiency (such as energy-efficient cook stoves) to methane avoidance to transportation.
“It is indeed very positive to see that the majority of the selected projects come from Africa,” said John Christensen, Director of UNEP Risoe Centre.
“This indicates that the offset project infrastructure is transforming market access,” Christensen added.
Three projects in Asia were also selected for the loan while two were in the Middle East and one in Latin America.
The majority of the approved loans were programmes of activities (PoA), of which there are 13. Seven were small-scale projects and three were large-scale projects.
The loans, subject to a formalized agreement, the UNEP says will cover the development of project design documents, validation by designated operational entities and the first verification of emissions.
John Kilani, Director of the Sustainable Development Mechanisms programme at the UNFCCC secretariat believes that the project types will help in the fight against climate change.
Meanwhile, the UNEP says applications are currently being accepted for the second round of the CDM Loan Scheme.
The deadline for applications is September 30, 2012.
By Ekow Quandzie