Japan: Projects for clean development

Enrique García, president & CEO of the Andean Development Corporation (CAF), and Kyosuke Shinozawa, president of the Japan Bank for International Cooperation (JBIC), signed in Japan a Cooperation Agreement to support projects in the Latin American and Caribbean region which use the Clean Development Mechanism (CDM), in the framework of the recently operational Kyoto Protocol.

The CAF president, who is attending the Annual Meeting of the Inter-American Development Bank (IDB) in Okinawa, explained that both institutions have had successful relations since 1975. He added that there were active efforts in the region to promote this type of development that gives more life to the planet. “CAF has been involved with the Latin American Carbon Program (PLAC) since 1999. This program aims to increase the sustainable development and competitiveness of the countries of Latin America and the Caribbean, by promoting opportunities in the market for greenhouse gas emission reductions”.

The agreement seeks to promote projects in the region which meet the CDM characteristics through an effective exchange of information aimed at applying financial instruments jointly with JBIC, and potentially with other Japanese firms. As part of this agreement, the two signatory organizations will exchange information on candidate projects with a view to exploring efficient financing and cooperation in obtaining the approval of the countries in which JBIC and CAF are involved.

Under the Kyoto Protocol, in force since February 16, 2005, Japan is obliged to cut its greenhouse gas emissions by at least 6% with respect to 1990. To achieve this target, the Japanese government has adopted a policy of using the Kyoto mechanisms, including support for CDMs along with its domestic reduction efforts.

The purpose of Japan Bank for International Cooperation is to contribute to the sound development of Japan, the international economy and the community through lending and other financial operations for promotion of Japanese exports, imports and similar economic activities; for the stability of the international financial order; and for social and economic development and economic stability in developing areas, under the principle of not competing with commercial financial institutions www.jbic.go.jp/english