This mini-hydro program is the third of its kind being developed by Land Bank under its Carbon Finance Support Facility (CFSF). Through CFSF, the bank will be able to provide not only financing for the plants but also services toward their registration as CDM projects.
In turn, KfW will purchase more than a million Certified Emission Reductions (CERs) to be generated by the mini-hydro program until 2020.
"We are pleased to partner with KfW on this project that will help mitigate the effects of climate change. This is in line with Land Bank's priority program for energy efficiency and environmental protection," President and CEO Gilda E.Pico said.
The POAs are measures that are coordinated and implemented voluntarily by private or public entities that implement policies or measures leading to GHG emission reductions. The program is designed to facilitate the registration of each single power plant under the CDM.
According to Bernhard Zander, Director of KfW Carbon Fund, the promotion of programmatic CDM is of strategic importance to KfW: "KfW supports the implementation of these programs worldwide. Considering POAs as a means to scale up the CDM and eventually rendering a mold for future sectoral mechanisms, the capacity building and experiences from implementing POAs will provide an essential catalyst for national and international policies on climate change."
Aside from the mini-hydro program, Land Bank is also developing CDM programs for animal waste and landfill gas to energy projects in partnership with the World Bank.
