News story | Date: 2015-02-25 | Ministry of Climate and Environment
NEFCO has been assigned by the Government of Norway to manage a global carbon procurement facility to procure Certified Emission Reductions (CERs) from the Clean Development Mechanism (CDM).
The principal objective of the Norwegian Carbon Procurement Facility (NorCaP) is to prevent the reversal of emission reduction activities by procuring credits from CDM projects whose survival or continued emission reductions depend on a higher carbon price than achievable under current market conditions (vulnerable projects).
Following the successful conclusion of the first call for proposal for NorCaP, where a total of 18.9 Mt CERs were contracted, results are now in from a second joint call for proposals (CfP2) under NorCaP and the NEFCO Carbon Fund (NeCF).
Whereas the first call for proposals (CfP1) only targeted vulnerable projects, the CfP2 also included projects in Least Developed Countries (LDCs) that had not yet been commissioned.
NorCaP - Vulnerable Projects
The CfP2 has received 112 project proposals that have passed the automatic pre-screening for compliance with eligibility criteria from 27 countries, in total accounting for 99.2 million CERs offered. Of this, 18 project proposals (16%) were Programmes of Activity (PoA), with the remainder being stand-alone CDM projects and bundles thereof.
Most project proposals were submitted from China with 24% of the project proposals, followed by Malaysia, India and Brazil.
The CfP2 had a set aside of up to 5 million CERs from projects in LDCs. A total of 9% of the project proposals originated from LDCs, which is disproportionately higher than their global 1% representation. The majority of the LDC project proposals were PoAs.