Canada and IDB to promote renewable energy and carbon finance projects in Latin America and the Caribbean

The Canadian International Development Agency (CIDA) will provide CAD$1,025,000 (approximately $890,000) in untied technical assistance resources to the Inter-American Development Bank for a joint work program to promote renewable energy, energy efficiency and carbon finance projects in Latin America and the Caribbean, the IDB announced today.

Such projects can help countries develop cost-effective and less polluting energy services as alternatives to the use of fossil fuels. They can also assist countries in seizing opportunities offered by a growing market for greenhouse gas “emission reduction credits.”

In order to expand carbon finance in IDB-sponsored projects, the work program will provide resources for drafting up to 20 “Project Idea Notes” or profiles required by potential financers and purchasers of credits to gauge a project’s potential.

Under the work program, the IDB’s pipeline of projects will be reviewed to identify potential opportunities for increasing energy efficiency in the proposed project designs. Improvements could be achieved not only in energy-related projects but also in housing, public services, mass transport, agriculture and environmental management.

The program will also establish a pilot service to provide advice to developers of carbon projects on assessing, pricing, marketing and selling carbon credits.

The Canadian-funded initiative is expected to boost investments in carbon finance and clean energy projects in the IDB portfolio and increase the availability of clean, efficient and lower cost energy services in Latin American and Caribbean countries.

The new program will also complement the IDB’s collaborative work program with Germany to promote the use of renewable energy and improvements in energy efficiency in the region. Other donors, including the Netherlands, Spain and Switzerland, have provided technical assistance resources for cleaner energy-related activities.