CAF and the Ministries of Federal Planning and Agriculture signed a Memorandum of Understanding regarding Cooperation for the Generation of Sustainable Energy

(Buenos Aires, February 6th, 2014). Through its Director Representative in Argentina, Ruben Ramirez, CAF, Development Bank of Latin America, recently elected as "Best Multilateral Bank of the Year" by Latin Finance, signed a Memorandum of Understanding regarding cooperation in the development of the biomass energy generation sector, to support the application of the "PROBIOMASA" project, with the Minister of Federal Planning, Public Investment, and Services, Julio De Vido, and the Minister of Agriculture, Ranching, and Fishing, Carlos Horacio Casamiquela. 

The secretaries of Energy and Agriculture, Daniel Cameron and Gabriel Delgado, respectively, and the Director of Renewable Energies, Javier de Urquiza, were present during the signing, among other personalities. 

The ministries involved in the signature have been implementing the program for the promotion of biomass energy (PROBIOMASA) since 2012, to increase the production of thermal and electric energy derived from the aforementioned renewable source, in order to ensure an increasing supply of reliable and competitive energy, the opening of new opportunities, and the promotion of regional development. 

As a result of this agreement, CAF will provide assistance to both ministries to develop PROBIOMASA's concept of Nationally Appropriate Mitigation Action (NAMA), which will reduce the emissions of greenhouse gasses by substituting fossil fuels for thermal generation, and reduce the decomposition of biomass residues, open burning, and electric energy generation.   

NAMA, a concept formalized in 2007 at the United Nations Framework Convention on Climate Change, seeks to define the technical and economic aspects of PROBIONASA's appropriate mitigation actions, for the measurement of the reduction of emissions of greenhouse gasses, report and verification of the reductions, monitoring method, analysis of the marginal mitigation curves, and financial mechanisms proposed for its implementation.    

This will provide Argentina with the necessary information to improve the estimates regarding the mitigation of greenhouse gasses and its contribution to the reduction of the global problem of climate change, through projects that will provide financing opportunities for the production of sustainable energy derived from biomass.