carbon advisory


carbon advisory services

Blue Capital specializes in gaining funding for carbon greenhouse gas emission reduction projects via carbon credit schemes such as the Clean Development Mechanism. We prepare all the documentation for your project, guide it through the approval process and arrange for sale, on your behalf, of the carbon credits it generates. The CDM (also known as MLD in Spanish) and other similar schemes offer a wide range of possibilities for project funding.

If you have a project which you think will lead to carbon greenhouse gas emission reductions we can advise you on its likely success. Best of all these schemes offer companies access to capital to fund projects which will improve your bottom line.

Clean Development Mechanism (CDM) is an economic instrument for inducing initiatives to meet the challenges faced by the impending threat of climate change. It is intended to serve the dual purpose of assisting developing countries in their pursuits for sustainable development as well as providing opportunity to developed countries to contribute towards reduction of the greenhouse gases at lower costs.

The Clean Development Mechanism (CDM) Project Cycle

The Clean Development Mechanism of the Kyoto Protocol defines a series of steps necessary to develop certified emissions reductions (CERs):

1. Project Design
2. Project Validation
3. Host Country Approval
4. Registration with the CDM Executive Board
5. Implementation and Monitoring
6. Verification/Certification and Issuance of CERs
7. Sale of CERs

The overall timeframe for this process depends on certain key steps over which we have no direct control, in particular the host country approval and the approval by the CDM Executive Board (where each cycle of review will typically take at least 30 days), but can reasonably be expected to occur within eighteen to twenty four months. The process is highly bureaucratic and encumbered with a lot of jargon that has unfortunately become an integral part of the process. Each step is presented in detail below.

Blue Capital carbon transaction services include:

>> Initial project feasibility assessment, including evaluation of compliance with additionality and other project eligibility criteria.

>> Preparation of Project Design Documents (PDD) and securing of the necessary approvals from the host country government and the CDM Executive Board.

>> Procuring of the validators and verifiers required as part of project approval.

>> Input to the engineering design of the emissions reduction system, and its implementation.

>> Assistance in identifying buyers for the carbon credits and negotiating their sale.

>> Overall project management.

more about our services

>> mergers & aquisitions
>> project financing
>> capital raising
>> management consulting

What is the CDM ?

The CDM is a project-based emission reduction programme designed to address the sustainable development needs of developing host countries, while increasing the opportunities available to developed countries to meet their reduction commitments under the Kyoto Protocol. CDM carbon credits are called Certified Emission Reductions (CERs). CERs become ‘issued’ once emissions reductions have been achieved from a source project that has been ‘registered’ (approved) by the Executive Board of the CDM. The issued CERs generated from a registered project (which can occur at any time from 2000 on) may be used to meet emissions targets under the IET in the first commitment period (which runs from 2008 to 2012), and also in the first and second stages of the EU ETS.

The CDM offers business in ‘developing’ countries the opportunity to access working capital, improve production efficiency and improve profitability.