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Update on the ProBEC Programmatic CDM Project
During November and early December, ProBEC undertook a number of key activities to ensure that its partners are able to benefit from carbon credits. Negotiations continued with the Newco. This company was selected by ProBEC following a detailed proposal process in the first half of 2010. An official announcement of the Newco's name and partners will take place in January 2011.
By the publication date of this newsletter, the following milestones had been reached:
- NewCo completed its initial due diligence and decided to focus on 3-4 countries initially—Mozambique, Malawi, Tanzania and Zambia. Selection of stove products for these countries will be undertaken during site visits in January 2011.
- A Memorandum of Agreement (MoA) was signed between ProBEC and NewCo, covering activities to the end of 2010, when ProBEC closes.
- As part of this MoA, ProBEC has agreed to conduct two additional studies on non-renewable biomass, in Malawi and Zambia. These are due to be completed by 20 December and will be handed over to NewCo for use in the development of Project Design Documents for the programme.
- ProBEC has also assisted in the signing of a Letter of Agreement between SADC and NewCo, which inter alia permits NewCo to take over as Coordinating Managing Entity (CME) for the Programmatic CDM project and assigns initial ownership of the carbon credits to them, subject to further agreements with partners. SADC will also serve on the managing committee of the CME. A final formal agreement between SADC and NewCo is to be signed by 31 March 2011.
- Finally, ProBEC has developed an addendum to existing partner agreements which also names NewCo as the new programme developer, and has distributed these to its partners for signing by 10 December. It is anticipated that NewCo will soon begin contacting ProBEC partners to determine their continuing interest in the carbon programme and to establish dates for site visits to interested parties, probably at the end of January. Following these visits, NewCo will make a final determination of the initial partnerships for the PoA and will enter into Emissions Reduction Purchase Agreements with the selected partners.
ProBEC partners will be interested to know that ProBEC regional office staff are preparing a Guidebook to Using Carbon Finance for Cookstove Projects in Southern Africa which will include information relevant to the negotiation process. The Guidebook is aimed at non-technical audiences but will include detailed guidelines for designing and implementing carbon projects for cookstoves as well as cross-references to key websites and printed sources. It should be available by the end of December and will be emailed to all partners who have signed the carbon addendum to their partnership agreement.