Carbon Finance

Tricorona collaborates with providers of technology that leads to greenhouse gas emission reductions by identifying projects with possibilities to carbon finance. By purchasing the carbon credits and by investing in the development of CDM/JI projects, Tricorona is adding value to the technology provider´s sell efforts. If a project complies with the rules and mechanisms of the Kyoto Protocol, the project owner may receive one carbon credit for every ton of CO₂ equivalent emission reduced by the project. For a project to be able to generate carbon credits, the emission reductions have to be real, additional, measurable and contribute to sustainable development.

Tricorona assists and supports technology providers in three main ways:

• Capacity building

Carbon finance creates additional selling opportunities for technology providers by increasing the funding for projects. We explain how to increase the sales through carbon finance and when carbon finance can be applied.

• Marketing and network

By working closely with technology providers to develop marketing material such as information sheets, questionnaires and calculators to facilitate the “ad hoc” assessment of the carbon finance potential. The marketing material is distributed within Tricorona’s global network of project owners and project developers, who are searching for emission reducing technologies.

• Project assessment

Tricorona supports project developers and technology providers by assessing projects in various project development stages and indicates the value of carbon finance regarding the carbon finance potential.

The following criterion are needed for a project to qualify for carbon finance:

• Additionality

The project is facing implementation barrier, which the additional revenue from the carbon finance helps to overcome.

Financial barrier - the project owner cannot reach financial closure/has no access to funding

Technical barrier - high perceived risk of the new technology/application or that it has never been implemented in the country/region/province

Investment analysis barrier - insufficient IRR/NPV

• Applicability
  

• Amount of carbon credits

The annual emission reductions generated from a project should at least amount to 30,000 tons of CO₂ ekvivalents to be commercially interesting

The CO₂ emission reductions for a project are calculated in the following manner:

ERy = BEy - PEy - LEy

ERy Emission reductions in year y
BEy Baseline emissions in the absence of the project activity in year y
PEy Project emissions in year y
LEγ Leakage emissions in year y

During the implementation of the project, this calculation must be validated and verified by an independent DOE (Designated Operational Entity) such as DNV, SGS or TÜV SÜD, and later approved by UNFCCC Executive Board.

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