At The Carbon Expo In Germany IIC Launches A New Open-Source Agreement For The Sale And Purchase Of Carbon Credits
05/02/2007Cologne, Germany - On May 3, 2007, the Inter-American Investment Corporation (IIC) launched a recently completed Certified Emission Reduction Sale and Purchase Agreement called the CERSPA Initiative. This IIC initiative reinforces the IDB Group’s commitment to sustainable energy as well as the IBD’s new Sustainable Energy and Climate Change Initiative (SECCI) that was launched in November 2006.
This is a more balanced model agreement for the sale and purchase of carbon credits. The model agreement was developed and is being published to help sellers participate in the international carbon market on an equal footing with more experienced buyers. The contract is accompanied by a guidance document that explains its provisions and provides alternative language tailored to different circumstances and types of projects.
The IIC is the main sponsor of this initiative, which receives assistance from the Korean Trust Fund and has been supported by several multilateral and development institutions such as the World Bank, the Andean Development Corporation, and the Swiss State Secretariat for Economic Affairs (SECO). More than thirty counsels from all over the world who have experience advising clients in Clean Development Mechanism (CDM) projects also assisted in the CERSPA initiative. The CERSPA and the guidance document will be made freely available in English, Spanish, Portuguese, and Chinese at www.cerspa.org.
"Having accumulated extensive experience with credit analysis of projects in Latin America and the Caribbean, we at the IIC are confident that the availability of a CERSPA template that strikes a balance between the interests of the buyers and the sellers of carbon credits, and their financiers is critical for the development and financing of CDM projects in the region. In this sense, this initiative will open many doors to smaller-scale developers around the world that may otherwise have been closed. The CERSPA Initiative aims at a more inclusive CDM market, and the IIC is proud to have had the opportunity to contribute SME lending expertise and CDM experience, among other resources, to achieve this goal," said Sarah Fandell, General Counsel of the Inter-American Investment Corporation.
The Inter-American Investment Corporation is a multilateral financial institution that is a member of the Inter-American Development Bank (IDB) Group. It provides financing (in the form of equity investments, loans, guarantees, and other instruments) and advisory services to private enterprises in Latin America and the Caribbean. The IIC's mission is to promote the economic development of its regional member countries by stimulating the establishment, expansion, and modernization of private enterprises, particularly those that are small and medium in size. For more information on the IIC's activities, please visit www.iic.int. For more information on the CERSPA Initiative and to obtain a copy of the CERSPA and the Guidance Document please visit www.cerspa.org.
Contact: Sarah Fandell/Alejandro Prada
Telephone: (202) 258-0892/(202) 294-7572