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First Round of CDM Loan Scheme Reveals Great Interest for CDM Projects

A newly launched loan scheme aimed at helping spur CDM projects in developing countries closed its first round of applications with a strong show of interest from countries across the world. The Scheme received applications from 42 projects in 23 countries in Latin America and the Caribbean, Asia and Africa. Africa had the bulk of applications, with 29 coming from the continent.

The loan scheme is run jointly by the UNFCCC, the United Nations Office for Project Services (UNOPS), and UNEP Risoe Centre. It provides interest-free loans for CDM projects in LDCs, as well as countries with fewer than 10 registered CDM projects. The loans are to cover development of project design documents; validation by a designated operational entity; registration of the project; and monitoring and verification of emission reductions.  The types of projects submitted were equally varied.  There were 22 applications for PoAs, covering mainly cook stove and small-scale biogas projects. In addition, 11 large-scale projects in a wide range of technology sectors, including transport, methane avoidance and renewable electricity, were also received.


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