CAF and KFW sign a carbon-emission abatement memorandum of understanding

(Special Release 15th June 2009)- On the occasion of the Carbon Expo 2009 Fair, held in Barcelona, Spain, the Andean Development Corporation (CAF) and KfW Bankengruppe (KfW) signed a memorandum of understanding May with the purpose of reinforcing their cooperation on the field of Clean Development Mechanism (CDM) within the framework of the Kyoto Protocol in Latin America and Caribbean. Signatories of the MoU were Mr. José Carrera, Vice-President for Social Development, on behalf of CAF, and Mr. Bernhard Zander, First Vice-President of the Carbon Fund of KfW.

From the beginning of the carbon markets both institutions have been very active in the development and implementation of CDM projects in Latin American countries contributing to the promotion and consolidation of the mechanism in the region. As organizations committed with climate change protection and aware of the high emission reduction potential existing in the region, CAF and KfW are joining efforts to provide project owners with tailor-made services that meet their specific requirements such as: structuring carbon-based financial solutions for the projects; providing technical assistance for the development of the CDM component of the projects; identifying and promoting Program of Activities (PoA) and purchasing emission reductions to be generated by the projects until 2012 and beyond.

This cooperation will strengthen CAF and KfW commitment to promote sustainable development in the Latin American and Caribbean region, combating climate change and encouraging a reasonable use of the existing resources within the framework of the Clean Development Mechanism and the Kyoto Protocol.

KfW Bankengruppe gives impetus to economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers support to encourage sustainable improvement in economic, social, ecological living and business conditions, among others in the areas of small and medium-sized enterprise, entrepreneurialship, environmental protection, housing, infrastructure, education finance, project and export finance, and development cooperation. Its KfW Carbon Fund is a purchase program for carbon credits according to the project-based mechanisms of the Kyoto Protocol. For more information www.kfw.de and www.kfw.de/carbonfund.