The NEFCO Norwegian Carbon Procurement Facility (NorCaP) has launched its first Call for Proposals. NEFCO is inviting Clean Development Mechanism (CDM) project participants to submit proposals for delivery of Certified Emission Reductions (CERs) from commissioned CDM projects that are vulnerable to the current low CER prices. The fund's present target is to procure up to 30 million CERs in total.
Proponents have until 8 January 2014 to submit their proposals. All contracted CERs are to be delivered at the latest by 30 June 2021. The underlying emission reductions must occur between 1st January 2014 and 31st December 2020.
For Projects in countries other than LDCs, the minimum volume per purchase transaction is 300,000 CERs, consisting either of a purchase from a single CDM project activity, a PoA with one or more Component Project Activities (CPAs) or from a bundle of similar CDM project activities in one host country under control of the same project participant. In case of Projects in LDCs, there is no minimum size of transaction.
Each proposal submitted by Proponents must include a schedule of future deliveries of CERs together with a fixed price in EUR/CER. The volumes must be based on a realistic risk-assessed output of emission reductions by the underlying project(s). The fixed price must apply uniformly to all CERs for delivery.
NorCaP was established in October 2013 to selectively procure greenhouse gas emission reduction credits from projects eligible under the Kyoto Protocol. NorCaP is wholly funded by the Norwegian Government. The principal objective of NorCaP is to prevent reversal of emission reduction activities in existing projects whose survival depend on a higher carbon price than achievable under current market conditions.
NEFCO will not be able to purchase CERs from projects within the following non-eligible sectors:
a) Hydropower projects in non-LDC countries;
b) Wind power projects in non-LDC countries;
c) Projects reducing trifluoromethane (HFC-23) produced as a by-product of chlorodifluoromethane (HCFC-22);
d) Projects reducing nitrous oxide (N2O) from adipic acid production
e) Coal based energy production without carbon capture or storage.