The MicroCarbon Development Fund will be managed by the Multilateral Investment Fund, the Inter American Development Bank´s private-sector arm. According to news website Empresa Exterior, Julie Katzman, General Manager of the Multilateral Investment Fund said that “The MicroCarbon Development Fund is a truly innovative way to spread the benefits of energy efficiency and carbon finance to lower income households, microenterprises, small companies and forest communities”, and she highlighted the importance of access to carbon markets.

Meanwhile, Friends of the Earth Europe issued on October 14th a new report, where they warn about the inefficiency of the European system against climate change, characterized by carbon trading and “offsetting” polluting emissions, through, for instance, the CDM.

Also, social organizations and movements from different parts of the world highlight that the CDM funded by the IADB has been fundamental to establish the carbon market. Through this mechanism, industrialized countries can “buy” part of their emissions reduction commitments to climate change mitigation projects in developing countries that generate emissions reduction certificates. That is, by buying these carbon credits, Northern countries avoid mandatory emission reductions under the Kyoto Protocol.

According to Empresa Exterior, the IADB plans to invest in six to ten energy efficiency projects, each ranging from 2 to 8 million dollars. The fund may also invest up to 20 % of its total committed capital in forest preservation and reforestation, as well as in other land-use based carbon projects. The first projects would be implemented in Colombia and Mexico, and then in Brazil, Ecuador, other countries of the region and Central America.

The Fund´s duration is 10 years. At the end of the program, at least 3.5 million carbon credits at the small firm, household, or community level are expected to be issued.

Meanwhile, a recent report by Friends of the Earth Europe questions the European Union Carbon Trading System for obstructing “real climate action” to combat climate change, according to a statement issued by the environmentalists. The report warns that the region is not achieving the polluting emission reductions required by science. Friends of the Earth Europe urges the EU governments to resist industry pressure and commit to higher emissions reduction targets.

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