CDM Loan Scheme Issues First Loan Authorizations
12 September 2012: The Clean Development Mechanism (CDM) Loan Scheme has issued its first loan authorization, authorizing the provision of more than US$3 million towards 23 CDM projects.
The CDM Loan Scheme was launched to support CDM projects in developing countries, and is run jointly by the UN Office for Project Services (UNOPS) and the UN Environment Programme (UNEP) Risoe Centre on behalf of the UNFCCC Secretariat. Under the scheme, interest-free loans are available for projects in least developed countries (LDCs) and in countries with fewer than ten registered CDM projects. The loans are offered to provide financing for the CDM validation, registration and verification process.
Seventeen of the 23 selected projects come from the African region, three from Asia, two from the Middle East, and one from Latin America. The selected projects are also very diverse, and range from household-level energy efficiency (such as energy-efficient cook stoves), to methane avoidance, to transportation. Thirteen of the loans are for programmes of activities, seven are for small-scale projects and three are for large-scale projects. The next step in the process is for UNOPS to distribute the loans to the selected entities and to monitor their progress.
Applications are also currently being accepted for the second round of the loan scheme. The deadline for applications is 30 September 2012. [UNFCCC Press Release] [CDM Loan Scheme Website] [UNEP Press Release]