The Statement of Work for the grant indicated that the Center would identifi two new projects during the grant perio~contact 25 or more potential investors for the projects and submit to USIJI a proposal for at least one project.
ResultsWe were successfid in meeting the goals described in the Statement of Work. Most importantly, we were able to help guide a carbon sequestration forestry project in Panam~the Caobocorp project, through the USIJI application process. The project was accepted by USIJI in 1997. We helped the project to develop its pro forma financial statements, quantifi GHG impacts, develop 'afinancial structure, identifi potential investors and complete its USIJI application,We worked with a number of other projects as well, including an innovative renewable energy/carbon sequestration project in Costa Rica (13iodiversifix), two biomass projects in the Czech Republic (Aktiva and Sublima) and a number of biomass projects in Hungary. Services provided to these projects included analysis of financial feasibility, estimation of project greenhouse gas impacts and marketing to project investors. The analytical work on Biodiversifix was particularly innovative, in that it involved the merging of a forestry project with a renewable energy project for the prupose of improving the financial appeal of the forestry project. Our marketing efforts included visits to a large number of private investors, primarily electric power generators, and participation in climate change and renewable energy conferences in the US and abroad (e.g., the Sine-US Bilateral Roundtable on the AIJ Pilot Phase held in Beijing, China.) These projects were unsuccessful in attracting investors and gaining USIJI approval.We believe that there were two primary reasons that we were unable to bring more projects through to closure. The first is the lack of credit during the AIJ pilot phase. (The pilot phase of AIJ (Activities Implemented Jointly) was established in 1995 by the Parties to the Framework Conventicm on Climate Change.) The purpose of a carbon market is to make greenhouse gas emission reduction proj ects more attractive by creating a financial value for the emissions reductions benefits provided. This financial value does not exist under current market conditions, however, because the international Climate Change Initiative Final Report 1 Center for Clean Air Policy June, 1999 community of nations has not yet implemented restrictions on greenhouse gas emissions and because the countries that signed the UN Framework Convention on Climate Change decided that greenhouse gas emissions credits would not be awarded during the AIJ pilot phase. In short, the projects with which we were working were not made more profitable by the fact that they were reducing greenhouse gas emissions.The second problem we encountered was the insistence from the Czech government to providing host country approval for projects. While we were successfid in the past in getting its approval for the Decin project, the first fhlly-fimded and operational JI p...