European Investment Bank (EIB)
The Climate Change Technical Assistance Facility (CCTAF) provides advance conditional funding for activities associated with the development of project based carbon assets (credits) under the Clean Development Mechanism (CDM) and Joint Implementation (JI) instruments of the Kyoto Protocol.
Total fund size: EUR 10 million (2005)
European Investment Bank (CCTAF entity), and there are outside consultants hired for technical assistance.
CCTAF assists projects that are in the process to be registered as a CDM/JI projects. The activities that CCTAF can provide funding, include:
- Carbon credit feasibility study
- Preparation of carbon credit documentation (PDD), including preparation of new baseline and/or monitoring methodology if needed
- Validation of the PDD, and
- Registration of the project
Steps for application:
1. Candidate project should be identified early in the EIB project cycle. The project promoter should provide sufficient information to allow the EIB to assess whether the project adheres to EIB lending objectives and has a well-developed business plan.
2. The project promoter has to send a letter to the EIB agreeing in principle with the conditions for funding under the CCTAF
3. The EIB and project promoter sign the contract
4. The full cycle of CCTAF: Phase 1: Carbon feasibility study, Phase 2: carbon credit documentation preparation and assisting with CDM/JI procedural issues, Phase 3: CDM/JI project validation.
If the project results in the successful registration with a relevant CFM/JI authority, the project promoter is required to repay the loan to the EIB, as follows:
- Under normal circumstances where the EIB is the lender to the underlying investment project, the CCTAF fee will be repaid to the EIB in full out of the proceeds of the first disbursement made under the EIB finance contract for the project.
- If the EIB is not a lender to the project, the project promoter will be required to reimburse the loan and pay the fee in full at the time of financial close of the project.
If the project does not receive registration with the relevant CFM/JI authority, the project promoter will be released from the obligation to repay the loan.
Document with guidelines on CCTAF Operations: http://www.eib.org/attachments/cctaf_guidelines_public_en.pdf
The facility will soon be closed and is likely to be replaced by something that is more appropriate in the post Paris COP21 agreement setting. General information about the role and activities of the EIB can be found on www.eib.org