Deutsche Bank and the Government of Ecuador have entered into a pioneering transaction to finance household energy efficiency in Ecuador through the carbon market.
The Government of Ecuador, acting through the Ministry of Electricity and Renewable Energy, has the potential to generate Certified Emissions Reductions (CERs), the emissions credits issued by the UN, from a Clean Development Mechanism (CDM) project by distributing six million energy efficient lightbulbs (CFLs) to 1.5 million poverty-level households throughout Ecuador. This project is expected to generate 440,000 tonnes of CO2 emissions reductions per annum.
The Government has sold the emissions reductions to Deutsche Bank under a forward contract and will use the funds raised from the sale to recover costs already incurred to implement the project.
The project would be the first large-scale project of its kind to receive regulatory approval from the Clean Development Mechanism and the first carbon credit transaction by the Government of Ecuador. CERs are traded globally and bought by industrial companies as part of their efforts to comply with emission reduction obligations in Europe and Japan.
Deutsche Bank’s Head of Environmental Financial Products Martin Lawless commented: “Deutsche Bank was pleased to work on this groundbreaking transaction with the Government of Ecuador. These types of innovative transactions highlight how the carbon markets can work to reduce climate change. We are delighted to be involved.”
For further information, please call:
Deutsche Bank AG
Phone: +44 (0) 207 545 8226
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