World Bank Document

Vol. 2

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1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 The State of the Carbon Market Carbon Copy ThePublic Disclosure Authorized Report-State and Trends of the Carbon Market 2006 (find full report at http://www.CarbonFinance.org), presented by the World Bank at the Welcome to the second issue of Carbon Copy. We are pleased to 2006 Carbon Expo in Cologne, Germany, concluded that the carbon market present the latest changes and trends occuring in the global carbon is strong despite price volatility and unclear post-2012 commitment market, Latin America and the Caribbean, and the World Bank’s Carbon signals by the United Nation’s Framework Convention on Climate Change Finance Unit. Stories in this issue include: (UNFCCC) and the Kyoto Protocol Parties. Here are some of the report’s most important observations about the carbon market: * Tilting at Windmills: Kyoto Strains-Editorial...... 2 * Back to the Future: Climate Changes Cities...... 3 *In 2005, the total value of the global aggregated carbon market * The Carbon Price Debate...... 4 was over US$10 billion. Projections for 2006 are as large as US$25-30 * Evolving Role of the World Bank in the billion, given the US$7.5 billion worth of transactions that occurred in Latin American Carbon Market...... 5 the first quarter of 2006. * Changing of the Guard at Carbon Finance...... 6 * Carbon Finance for Dummies: First Steps *In the past, the carbon market was dominated by third-party in Developing Carbon Finance Projects...... 7 Public Disclosure Authorized intermediaries (carbon funds or emissions brokers), but 2005 saw the * What’s in the Pipeline?...... 8 emergence and expansion of exchange platforms, such as the European Climate Exchange, and auctions, the first ever being held by the We hope you enjoy Carbon Copy and look forward to providing Government of Ireland (sold 250,000 tons of reductions at US$31.56 per future updates. You can find this Vol. 2 and the first issue of Carbon tonne reduced). These mechanisms simplify transactions, reduce risk Copy at: www.worldbank.org/lacmakingcitieshealthier. and increase the transparency of prices. John H. Stein *The World Bank’s review of the terms and prices negotiated Sector Manager in 2005 contracts showed that emission reduction sellers emerged as the Water and Sanitation, Urban Development ‘price-makers’ rather than ‘price-takers’, shifting the balance of power and Disaster Management Group away from the buyer and toward the seller. LCR-FPSI

*In terms of buyers in the market, Europe and Japan dominated

thePublic Disclosure Authorized market for project-based transactions in 2005, with 56% and 38% of the volume, respectively. In terms of sellers, China alone accounted for 66% of the contracted volume of project-based transactions between January 2005 and March 2006. India, which in 2004 held the lead with 43% of global volume, accounted for only 3%. Latin America’s volumes accounted for 17% of transactions.

*The size of transactions has increased. Compared to a 2004 average transaction size of 1.24 million tonnes of carbon dioxide equivalent (tCO2e), the 2005-06 period saw an average transaction size of 1.90 million tCO2e. The number of deals greater than 5 million tCO2e, for the period prior to 2012, has increased from 4 in 2004 to 11 in the 2005-06 period. These increases signal that the market has a preference for larger projects with lower transaction costs.

Public Disclosure Authorized *Given uncertainties about post-2012 commitments and preferences for larger projects, the ‘window of opportunity’ to develop new projects is closing. It is likely that demand will focus on proven technologies, approved methodologies, and projects that are not capital intensive. Landfill and coal mine methane projects will most likely be the focus of new demand. For Pros and Cons of Carbon Finance, see page 7

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 Tilting at Windmills Tilting at Windmills is Carbon Copy’s opinion page, where varying viewpoints on the Kyoto Protocol and the carbon finance market are encouraged. If you have a comment you would like to submit for the next issue of Carbon Copy, please send it to the Editor (see page 8). Kyoto Strains Almost 18 months after it entered into force, the Kyoto Protocol may Canada and the ETS prices aside, Kyoto signatories and the established be under strain. Despite indications that the ratifying countries are carbon market are now anxious to receive indications with regards to confidently approaching the first commitment period of the Kyoto the role that large emission producers such as the U.S., China and India Protocol (2008-2012), signatories are waiting for more certainty on will play after 2012. matters such as Canada’s target attainments, the stabilization of the European Trading System, and agreement on the future for large While President George W. Bush pulled out of the Protocol in 2001, the emission producers such as the U.S., China, and India. American public’s concern over climate change has steadily increased. Documentaries such as Al Gore’s ‘Inconvenient Truth’ are having a Canada’s temperatures rose 4 degrees Celsius above normal this past significant impact. State and local government support of emission winter, the warmest ever recorded. Coincidentally, due to the booming reductions, as seen under the U.S. Conference of Mayor’s Climate petroleum sector, which requires significant energy for production, Protection Agreement (see page 3), are substituting for the U.S.’s lack Canada’s greenhouse gas (GHG) emissions have increased by of commitment to the Kyoto Protocol. The U.S.’s participation under approximately 30% since 1990. Meeting the current Kyoto requirements the Protocol may now depend on the outcome of the 2008 Presidential is a major challenge for Canada. election.

Adding to the heat were rumors surrounding the new Conservative And what of the Asian giants? Will China and India enter the Protocol government’s concerns with the Kyoto Protocol, including the and commit to reducing greenhouse gases? Can the protocol perhaps potential lack of commitment and possible withdrawal beyond 2012. accommodate China and India by allowing them to be both the ‘buyers’ Rona Ambrose, Canada’s Minster of Environment, suggested a and ‘sellers’ of carbon reductions? Will the ‘Copenhagen Consensus’, separate “made-in-Canada” solution and U.S.-style bi-lateral trading in which economists (including three Nobel laureates) and several UN schemes such as the Asia-Pacific Partnership, which would be sought diplomats concluded that world leaders would achieve greater benefits in addition to Kyoto. Canada’s ratification was instrumental in moving by prioritizing issues such as malaria, education and water over climate Kyoto forward, particularly given the U.S. exemption from the first change, play a large role in the decision making process? commitment period (2008-2012), and the Minister clarified that Canada would not be pulling out of the Kyoto Protocol. While proponents hope that the Kyoto Protocol will be as successful at reducing GHG emissions as the Montreal Protocol was in reducing ozone Speculation about the failure of Kyoto, due to plunging carbon credit depleting substances, Canada, as well as China, India and the United prices this past May, may have also been premature. According to the States are rethinking their roles under a global GHG reduction scheme. EU’s commitment to the Protocol, the region will reduce its emissions Due to Canada’s attainment challenges, volatile carbon prices, and by 8% of its 1990 levels between 2008 and 2012. In order to help the uncertainty about post-2012 commitments, the Kyoto Protocol seems region comply with this reduction target the Eurpean Union Emission strained. It continues, however, to be the most cost-effective approach Trading Scheme (EU ETS), the first program of its kind, was launched to dealing with the challenge of global warming. in 2005. The drop in carbon credit prices was due to overly generous carbon emission allowances for the period 2005-2007, not because of -Daniel Hoornweg any inherent shortcomings of the Protocol. The 2005-2007 allowance Editor, Carbon Copy period served as a pilot phase prior to the Kyoto 2008-2012 commitment period, and provided valuable lessons about setting the ‘right’ level of allowances per country.

Santiago: Composting for Better Waste Management

In Chile, well received economic growth has also meant large increases in urban waste volumes. In Metropolitan Santiago, the challenge is to develop a sustainable system to manage these increases. One solution is the development of the Santiago Composting Project, which will build and operate a composting facility to treat urban biodegradable waste and non-toxic wastewater sludge. The plant will use at least 20% of the organic waste generated in Metropolitan Santiago, treating approximately 216,000 tonnes of waste per year that would otherwise be disposed in a sanitary landfill. In addition to alleviating landfill pressures, this project generates revenues through the production of compost and through the sale of emission reductions resulting from the project’s mitigation of nearly 326,000 tCO2-equivalents per year. The project is the first of its type in Latin America and demonstrates that thinking ‘outside the box’ can lead to waste management that is not only sustainable but profitable. As with many of the more innovative CDM projects, the project is requiring considerable time to develop an agreed- upon methodology, and to obtain local environmental approvals.

2 Back to the Future: Climate Changes Cities Much about climate change is uncertain: What happens to the Kyoto Protocol after 2012? What levels, if any, of emission reductions do the world’s countries need to strive toward? What price can the project proponent expect for emission reductions before and after 2012?

However, much about climate change is also certain: Cities are the single largest source of the world’s GHG emissions and therefore offer the largest possible reductions. Also, emission trading is here to stay.

Climate change is already affecting the world, especially cities. This impact is growing and the world will eventually be forced to reduce GHG emissions. The level that is finally agreed upon will balance perceived costs and benefits. This required level of emission reductions will also depend on when an agreement is reached. It is likely that the longer it takes to reach such an agreement, the larger the level of required emission reductions will be at that time. Protection Agreement, in which they agreed to meet or surpass Kyoto Protocol emission reduction targets. In the meantime, good city managers are already taking climate change into account in the running of their cities. They understand that one The World Bank is working with cities to expand their role in reducing of the best ways for a city to reduce global GHG emissions is to GHGs and projects will increasingly include activities to encourage improve local activities. For example, upgrading urban transportation and monitor emission reductions. Furthermore, the Bank is working improves a city’s local air quality while reducing GHG emissions. with client cities to maximize their emission reductions and potential Already, over 80 cities worldwide have signed the United Nations revenues from the sale of these reductions with the aim of simultaneously Environment Programme’s (UNEP) Urban Environmental Accords, improving their local economies and environment. which mandate 25% GHG reductions by 2030. Furthermore, 238 mayors from 41 states in the U.S. committed to the U.S. Mayor’s Climate

Recent Trends in the Carbon Finance Market

Technology Share of Emission Reduction Projects Market Buyers (as a share of volume contracted)* (as shares of volumes purchased by the World Bank)*

January 2005 to March 2006 January 2005 to March 2006 Overall Volume: 453.5 million tCO2e

* From: State and Trends of the Carbon Market 2006, The World Bank

3 The Carbon Price Debate

One of the biggest challenges for the World Bank’s Carbon The European Commission’s Global Report released on May Finance Unit (CFU) has been finalizing carbon finance 15th showed that Britain, Spain and Italy were the only projects within an uncertain market, and engaging in the countries that produced emissions above targets. Excluding carbon ‘price debate’. Project developers would often claim Britain, which sets its targets outside of the ETS, the report that the Bank paid too little and needed to catch up with the concluded that participating countries produced 2.5% less market. The Bank’s average price of US$7.50 per tCO2e emissions than were granted to them for 2005. reduced appeared low in comparison to other offers of up to €30 per tonne reduced. However, the month of May proved While monitoring global trends, the CFU is able to adjust that the market was weaker than originally presumed. the purchase price of carbon emission reductions. However, once the Bank signs an Emission Reduction Purchase Project developer complaints quickly faded when the Agreement (ERPA) with a client, the price paid per tonne European Union price of carbon credits dropped to its lowest reduced is fixed over the lifetime of the agreement. This is level in over a year. The drop occurred when several great news for clients in light of the recent price drops and countries –The Czech Republic, Estonia, France, the uncertainty about future prices. Netherlands and Sweden- announced that far fewer emissions were produced than permitted under the quota Despite occasional claims to the contrary, the World Bank’s system set by the European Union Emissions Trading Scheme CFU has consistently been setting realistic and market- (ETS). The demand for credits was therefore significantly responsive prices. The World Bank is not on the losing side reduced. of the ‘price debate’, and the latest price adjustments illustrate that the market is now better reflecting the Bank’s pricing The global market for carbon credits was quick to react. The strategy. price, which had reached a peak of €31 per tonne in mid- April, dropped to below €9 per tonne by May 12th . /tCO2) € EUA price (

June ‘05 July ‘05 Aug ‘05 Sept ‘05 Oct ‘05 Nov ‘05 Dec ‘05 Jan ‘06 Feb ‘06 Mar ‘06 Apr‘06

European Union Allowances Spot market (Daily Closing Price, Powernext) from start of operations (24 June ‘05) to 5 May ‘06*

* From: State and Trends of the Carbon Market 2006, The World Bank

4 Evolving Role of The World Bank in the Latin American Carbon Market

With the rapid development of the carbon market over the last 18 months, particularly in Latin America, the World Bank’s strategy for engagement in this region has evolved significantly to improve access to, and benefit from, the carbon market for client countries.

Providing Sellers Access to the Carbon Market. For sellers in more developed carbon markets, willing to assume higher risks in return for more attractive prices, the World Bank is now offering to ‘un-bundle’ emission reduction purchases and technical assistance. Currently, the World Bank finds, prepares and contracts emission reductions from eligible projects1 to a specific World Bank carbon fund. The Latin America and Caribbean Region of the World Bank now offers advisory services to find, prepare, package and assist the project sponsor in Aggregating Projects, Programmatic Approaches and the Scaling- accessing the carbon market in order to obtain the highest prices. up of Carbon Finance. The World Bank Carbon Finance Unit is looking This could be done for example, by auctioning the emission reductions. for opportunities to develop programmatic approaches that reduce Through this service, the World Bank provides a no-risk service to the GHG emissions. Such approaches may involve, for example, a group client, agreeing to carry out the whole project development process, of cities that develop regionally or nationally integrated waste including certification and sale of the emission reductions. management facilities (landfills, recycling and composting). ‘Bundles’ of projects, such as bagasse cogeneration facilities through sugar, or Promoting Participation of Public Sector Entities in the Carbon cogeneration associations, are also encouraged. Market. The World Bank’s clients are primarily found in the public energy sector. The Bank intends to devote its efforts to promote the Mainstreaming Carbon Finance with World Bank Lending. The participation of these public sector entities, including municipalities World Bank is strengthening the association between lending projects and utilities, in the carbon market. Funds through CF-Assist (a program and carbon finance opportunities, looking for opportunities to link established by the World Bank, with collaboration from the World carbon finance to planned lending operations. New lending products Bank Institute, which provides training and expertise to carbon finance that blend carbon finance in eligible projects to accelerate repayment project developers) can be used to develop the capacity of such and/or reduce interest payments are being considered on a project- entities and the World Bank invites interested entities to contact the by-project basis.

Bank. 1 See http://www.CarbonFinance.org for project eligibility requirements.

(US$ per tCO2e) per (US$ Averageprice (million tCO2e) Annual volume of project-based transactions

Annual Volumes (millions tCO2e) of project-based emission reductions transactions and annual average price in US$ per tCO2*

* From: State and Trends of the Carbon Market 2006, The World Bank 5 Changing of the Guard at Carbon Finance

The Carbon Finance Unit’s management team recently changed. The team now better reflects the integrated role of carbon finance in World Bank operations.

Joëlle Chassard was appointed as Manager, Carbon Finance, effective May 8. Joelle joins a team whose structure was streamlined to efficiently implement the new strategic approach and deal with the needs of both buyers and sellers of the carbon funds managed by the World Bank. The new strategic approach includes:

*Strengthening the technical capabilities of the Bank’s regional operations by transferring carbon finance specialists to the regions;

*Realigning the internal management and processes of the Carbon Finance Unit to the new objectives in order to maximize the provision of high quality services through the Carbon Finance teams.

The Programs Team, which is responsible for managing the eight Carbon Funds is led by Benoit Bosquet. The Operations Team, which is responsible for individual carbon transactions, will be led by Jari Vayrynen for Joint Implementation (JI) and Lasse Ringius for Clean Development Mechanism (CDM) transactions. The Methodology team will continue to be led by Johannes Heister. These teams will report to Joelle as Manager, Carbon Finance, while Warren Evans, Director of Environment, will continue to provide general oversight of the Unit.

Buenos Aires and The World Bank: Carbon Finance and Recycling

The World Bank is currently assisting in the development of a carbon finance project for enhanced recycling activities in the municipal solid waste sector. The project, which is anticipated to be developed with CEAMSE, the regional government agency responsible for solid waste management in Buenos Aires, is the Bank’s first pilot project in recycling. Contingent on methodology approval by the Clean Development Mechanism, it will be the first recycling project to qualify for carbon financing under the Kyoto Protocol. The Bank’s Carbon Finance Unit is currently assisting with the development of a methodology that can properly estimate the project’s emission reductions by demonstrating energy savings that result from recycling programs.

6 Carbon Finance for Dummies: First Steps in Developing Carbon Finance Projects

When a World Bank task manager or outside partner identifies a potential carbon finance opportunity, project development can often appear daunting. If the buyer of the potential emission reductions is the World Bank’s Carbon Finance Unit (CFU), there are 2 important steps that will get the project moving quickly.

1) The Project Idea Note (PIN)- Project Sponsors first need to submit a Project Idea Note (PIN) for consideration by the CFU. The PIN is a project summary (about 6 pages) that provides the basic information about the project, in addition to a brief financial analysis. The PIN is quickly evaluated, and if it meets project eligibility criteria, the CFU contacts the project sponsor for additional information. From this point forward, the CFU works with the sponsor throughout the rest of the project cycle. The template for this PIN and the financial analysis as well as a detailed description of the Project Cycle can be found on the Carbon Finance Unit’s webpage, under “For Project Developers”: www.carbonfinance.org.

2) The Letter of Intent (LoI)- After acceptance of the PIN, submitted by the project sponsor, the CFU is involved in all subsequent steps of the Project Cycle. The Letter of Intent (LoI), which is signed early in the process between the CFU and the project sponsor, can foster a smooth transition into what quickly becomes the bulk of project development. In the LoI, the CFU formally signals its intention to purchase the emission Innovative Ideas in Carbon Finance: reductions generated by the specific project under agreed terms in return Energy Conservation Building Codes for the exclusive right to purchase a designated quantity of emission reductions. By signing the letter, the project sponsor also commits to In Latin America, building codes are generally created repay any project preparation costs if he decides to sell the agreed upon at the national level, while responsibility for applying emission reductions to another buyer. and enforcing them lies with the city. Following a recent wave of energy efficiency lighting projects proposed to the CDM, the Bank is looking into carbon financing opportunities for countries that include energy The Pros and Cons of Emissions Trading conservation as part of their larger building code program.

PROS CONS The idea seems practical given the existence of • The m ost cost • Price vulnerability and organizations that are dedicated to the development of effective emissions are uncertainty beyond standardized building codes. Nevertheless, the encouraged 2012 challenges for these types of projects are evident: for • Developing countries • Transaction costs are get additional high and example, to date, no emission reduction methodology financing and methodologies and for energy efficiency building codes has been approved technology transfer procedures are still by the Clean Development Mechanism. Furthermore, uncertain in some countries, the creation of new codes may require • It does not matter • Rich countries are able lengthy political and technical consultancies. where the emissions to export their occur-climate change pollution is a global issue With Kyoto registration and methodology approval • The overall program is • Smaller projects are deadlines fast approaching, those interested in the most efficient way less attractive than implementing energy conservation building codes and of reducing larger ones selling the resulting carbon reductions need to act fast. greenhouse gas em issions

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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Brazil Reservoirs 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Alta Mogiana Bagasse 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Chile Quilleco Hydropower12345678901234567890123456789012 Project 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Brazil Cogeneration 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Chile Santiago Composting12345678901234567890123456789012 Project 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Brazil Nova Gerar Landfill 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Furatena Agroindustry12345678901234567890123456789012 Carbon 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Plantar Sequestration 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Colombia Offset 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Brazil and Biomass Use 123456789012345678901234567890121

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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012San Nicolas Carbon12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Chacabuquito Small 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Colombia Sequestration Project12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Chile Hydro 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Colombia Silvopastoral Rehabilitation12345678901234567890123456789012 1

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Chile Chile Hornitos Project 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Carbon Sequestration12345678901234567890123456789012 in Small 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Amoya River 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Costa Rica Farms in the Brunca12345678901234567890123456789012 Region 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Colombia Environmental Services 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Costa Rica Coopeagri Forestry12345678901234567890123456789012 1

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Colombia Jepirachi Carbon Offset 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Dominican 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Republic Rio Blanco Watershed12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Colombia Rio Frio Carbon Offset 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Guyana Bagasse Cogeneration12345678901234567890123456789012 1

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Umbrella Project for 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Guyana Skeldon Sugar Modernization12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Renewable Energy 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Pico Bonito Forest Regeneration12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Costa Rica Sources 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012and Sustainable Livelihoods12345678901234567890123456789012 1

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Honduras Project 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Umbrella Hydro 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Ecuador Projects Mexico Cruz Azul Wind Power12345678901234567890123456789012 (IFC) 1

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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012El Canada Mexico Seawater Agroforestry12345678901234567890123456789012 Project 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Guatemala Hydroelectric Project 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Mexico Shade Coffee12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012La Esperanza Hydro 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Mexico Wind Umbrella12345678901234567890123456789012 1

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Honduras Project 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Nicaragua Perza-CDCF Umbrella12345678901234567890123456789012 Project 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Mexico City Bus 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Nicaragua Precious Woods Project12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Mexico Transit System 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Huaycoloro Landfill12345678901234567890123456789012 Gas 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Waste Management and 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Peru Recovery 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Mexico Carbon Offset 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Peru Tarucani Hydro12345678901234567890123456789012 1

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Trinidad and Nariva Ecosystem Restoration12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Peru PE Santa Rosa Hydro 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Tobago and Carbon Sequestration12345678901234567890123456789012 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Peru Poechos Hydropower 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Uruguay Montevideo Landfill12345678901234567890123456789012 Gas 1

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12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012If you have reactions, comments or want to submit an item for the next issue of Carbon Copy12345678901234567890123456789012 please 1 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012forward any ideas or comments to Dan Hoornweg, Editor, at [email protected]

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Contributors to this issue of Carbon Copy: 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Dan Hoornweg, Editor 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Natalie Palugyai, Assistant Editor 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Chandra Shekhar Sinha 123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012Anita Gordon 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012July 2006 123456789012345678901234567890121 12345678901234567890123456789012123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

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