MDG Carbon Facility | Benefits for project proponents

CARBON FINANCE FOR SUSTAINABLE DEVELOPMENT

THE FACILITY

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RESOURCES

CONTACTS

BENEFITS

Experience, reach and development impact

The Facility works with a range of project proponents, offering a comprehensive package of services. UNDP seeks to transfer the full value of its expertise to Facility projects, and invite project proponents to participate.

UNDP is a well respected, neutral development agency, acting to advance project proponents' interests and further economic and human development in developing countries. UNDP provides:

Proven expertise: UNDP's proven expertise in environmental project development allows it to effectively develop project documentation and manage the complex Clean Development Mechanism and Joint Implementation regulatory processes;

Local presence: UNDP operates a network of 135 active country offices. UNDP's local relationships, contacts and knowledge are a significant resource to address the challenges faced by emission reduction projects. UNDP's strong relationships with host country governments and other actors will help project proponents effectively manage local risks; and

Sustainable development contribution: UNDP understands each country's individual development challenges. The Facility's emission reduction projects leverage UNDP's development know-how, maximizing benefits for both the environment and the local, national, and global community.

For project proponents, this translates to:

Access to a comprehensive service package;

Project preparation costs advanced by the Facility; and

Direct purchase of your carbon credits (see sidebar for details of project proponent benefits).

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PROJECT PROPONENT BENEFITS

Access to a comprehensive service package

Outside the Facility, a project proponent will typically require a number of advisors to develop an emission reduction project, such as environmental, engineering, financial and legal consultants. In particular, the Clean Development Mechanism regulatory requirements can be burdensome for inexperienced project proponents.
However, thanks to the project development expertise of UNDP, the Facility offers project proponents a complete package of services. The Facility's services cover every step -- from initial project preparation to issuance and delivery of the carbon credits -- providing a comprehensive package of project development services and minimizing resource commitment by the project proponent.

Project preparation costs advanced by the Facility

Project proponents are often capital-constrained. Project development is often obstructed in developing countries due to the difficulty in obtaining advance funds for project documentation, validation by a Designated Operational Entity or initial verification of the project's emission reductions.
Recognizing these capital constraints, the Facility will advance these costs as part of its service package.