Environmental agreement signed with Spain

The general secretary for Prevention of Contamination and Climate Change, Arturo Gonzalo Aizpiri; the director general of International Financing of the Ministry of Economy and Finance, Ramón Guzmán; and President & CEO of the Andean Development Corporation (CAF), Enrique García, today presented in Madrid the agreement signed with Spain for purchase of nine million tonnes of Co2 equivalents.

The CAF President said, "With this initiative, CAF enhances its catalytic role in the area of environmental services, strengthening its commitment to sustainability, competitiveness and regional integration." Spain and the Latin American countries will benefit from CAF’s experience and strengths in developing the market for greenhouse gas (GHG) emission reductions, at the same time as supporting Spain’s commitment to reduce its emissions.

In the presentation of the agreement, CAF was described as one of the pioneering institutions in the development of the market for GHG reduction credits through the Latin American Carbon Program (PLAC), set up in 1999.

The agreement is part of Spain's general strategy to meet the objectives of the Kyoto Protocol. It joins the financial instruments implemented by the Spanish government to permit acquisition of carbon credits on international markets through the Kyoto flexible mechanisms.

The objective of the agreement, which sets up the Ibero-American Carbon Initiative (IIC), is to obtain, through public capital, nine million tonnes of CO2 equivalents, in addition to the 40 million tonnes contracted with the World Bank.

The IIC carbon credits will come exclusively from Clean Development Mechanism projects located in Latin American and Caribbean countries. With this initiative, Spain and CAF are contributing to the transfer of clean technologies and to the sustainable development of the region.

The agreement to create IIC defines the priorities for the Spanish portfolio as technologies that promote sustainable energy systems, energy saving and efficiency, and renewable energy.

In another development in the area of strengthening cooperation and execution of joint activities between CAF and Spain, the Ministry of Economy and Finance will sign a Professionals Assignment Program with CAF. With finance from the Spanish Consulting Fund, CAF will hire Spanish experts to work on its programs and projects in Ibero-America and facilitate the participation of Spanish companies.

The signing of the Professionals Assignment Program is part of the ministry’s general policy of increasing the presence of Spanish professionals in multilateral financial institutions in line with Spain’s real weight in the world economy and contributing more to the growth and improvement of living conditions in developing countries.