IIC signs a clean development mechanism and carbon finance cooperation agreement with Germany's KfW
03/28/2009Medellín, Colombia - On March 29, 2009, the Inter-American Investment Corporation (IIC) signed a memorandum of understanding with Germany’s KfW to cooperate on identifying Clean Development Mechanism (CDM) projects and on CDM programs that are being or will be developed in Latin America. The signing ceremony took place during the Annual Meetings of the Boards of Governors of the IIC and the Inter-American Development Bank, which are being held this month in Medellín.
The IIC and KfW will also provide support for CDM-related activities such as analyzing financial documentation to identify suitable financing alternatives for CDM projects and sponsoring studies on particular sectors with CDM potential. The two institutions will share information on developments and trends regarding the supply and demand of emission reductions in Latin America and the Caribbean and Europe.
The IIC will consider investing in eligible projects that meet CDM criteria. It may do so directly, by granting loans and/or subscribing and purchasing equity or convertible debt instruments. It may also invest indirectly through other financial institutions via instruments that may include mezzanine financing.
KfW brings to this agreement its expertise in funding German and European enterprises, home finance and housing modernization, environmental and climate protection, export and project finance, and development assistance for developing and transition countries. It also runs the KfW Carbon Fund, which is a purchase program for project-based emission certificates in accordance with the Kyoto Protocol.
Signing for KfW were Rüdiger Hartmann, First Vice President, Latin America and the Caribbean, and Pablo Obrador Álvarez, Senior Project Manager, KfW Carbon Fund. Jacques Rogozinski, General Manager, signed for the IIC.
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. In 2008, the IIC approved sixty-four transactions channeling US$300.5 million to small- and medium-size enterprises in the region. The IIC’s mission is to promote the economic development of its regional member countries by encouraging 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.
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