The NEFCO Norwegian Carbon Procurement Facility has closed its First Call for Proposals successfully. The Fund received 232 projects that fulfil the basic eligibility criteria, in total accounting for 211 million Certified Emission Reductions (CERs) offered.
Please note the data presented below is aggregated, and there has been no assessment at this stage of the vulnerability of these projects nor the project specific details such as contractual situation or considerations. This detailed evaluation and subsequent contracting of projects will take place in the coming months.
Of the total, 29 projects (12%) were Programmes of Activity (PoAs), with the remainder being stand-alone Clean Development Mechanism (CDM) projects and bundles thereof.
The response to the Call was impressive with projects from 35 countries submitting proposals. This is around a third of all CDM countries. The country providing most submissions was China with 31% of the projects, in line with that country’s global share of projects (34%). Next were Brazil and India.
There was a good distribution of other countries, including 9% of the submissions from Least Developed Countries (LDCs), disproportionately higher than their 1% representation in the general CDM universe. The majority of the LDC projects submitted are PoAs.
Cost effectiveness is a key criterion for the selection of projects under NorCaP. The simple price proposed across all project categories was €4.22 per CER. The weighted average price is €3.92 per CER.
NEFCO has been assigned by the Government of Norway to establish a global carbon procurement facility to selectively acquire Certified Emission Reductions (CERs) from Clean Development Mechanism (CDM) project activities or Programmes of Activities (PoAs) registered under the Kyoto Protocol of the United Nations Framework Convention on Climate change (UNFCCC). The NEFCO Norwegian Carbon Procurement Facility (NorCaP) is wholly funded by the Norwegian government. NorCaP will purchase CERs for the second commitment period of the Kyoto Protocol to be used by Norway to cover a part of its commitments under the Protocol.