The Swedish Energy Agency (Energimyndigheten) has invited proposals by 16 February from Clean Development Mechanism (CDM) project developers for the delivery of up to 10 million Certified Emission Reductions (CERs) to the Swedish CDM programme on a forward basis with payment-on-delivery terms under the second commitment period of the Kyoto Protocol from 1 January 2013 to 31 December 2020.
The agency will give priority to renewable energy, energy efficiency and waste management projects that have not yet been commissioned, and says that projects that are at risk of being discontinued will also be of interest together with other projects that have already been commissioned in Least Developed Countries (LDCs) or other countries with a limited number of CDM projects.
The agency’s geographical focus is on Sub-Saharan Africa and South East Asia, and underrepresented developing countries and LDCs will be of particular interest. It is seeking proposals in the 200,000 to 800,000 CERs volume range and will consider smaller projects only if they are located in a LDC or a country with few CDM projects. Submitted proposals should include a fixed price offer expressed in X€/CER.
Cost-efficiency, contribution to sustainable development, leverage of private funding as well as activities’ innovative and transformative potential will be the major characteristics for consideration. The agency will shortlist proposals of interest after an initial screening and developers of shortlisted projects will be expected to sign a term sheet setting out basic commercial and legal terms.
After shortlisting projects, the agency will undertake due diligence for each of the selected proposals, including review of additional documentation and site visits. The due diligence phase will qualify projects on to the contracting phase. The agency uses a standardised template for Emission Reductions Purchase Agreements (ERPAs).
The Swedish CDM programme financially supports international greenhouse gas mitigation activities by purchasing CERs from CDM projects and programmes. The Swedish CDM programme aims at developing flexible mechanisms to help lay the foundation for continued and expanded international climate cooperation, achieve cost-effective greenhouse gas reductions and contribute to transformational change and sustainable development in project host countries.