Accessibility to Carbon Finance: Performance of Designated Operational Entities in Household Energy Projects

22 November 2013“Performance of Designated Operational Entities in Household Energy Projects – Benchmarking Survey” assesses the performance of Designated Operational Entities (DOEs) during validation and verification of small-scale carbon projects. The study is the third part of a research series that aims to enhance the fairness, transparency and accessibility to climate finance for small-scale household energy projects.

Many project practitioners in developing countries and least developed countries have identified carbon finance as a financing model for their climate friendly projects. Accessing carbon finance involves complex certification processes to achieve registration of a project on the voluntary markets.

“The financial viability of many carbon projects, especially small-scale project activities, is often undermined or likely to be undermined by high transaction costs, long lead times and a lack of technology-specific expertise associated with the carbon project cycle” says Samuel Bryan, Technical Director at Nexus-Carbon for Development.

The study provides feedback from the ground up to ensure a higher degree of cooperation between designated operational entities (DOEs) and project developers and to strengthen project developers’ abilities to make informed choices when selecting DOEs.

Focusing on three key areas the study examines:

  • Value for money of DOEs’ services: for the purpose of this research, value for money is defined as believing that the services you have received from contracted DOE were worth the price paid.
  • Timeliness of DOEs’ services: for the purpose of this research, timeliness is the ability of the DOE to adhere to the agreed timeline and meet key deadlines officially agreed upon.
  • Technical capacity of DOEs: DOEs’ technical expertise in specific project technologies, small-scale methodologies as well as specific host countries in LDC and LIA.

The Gold Standard Foundation and CDC Climat Research provided valuable input to the methodology development and have peer-reviewed the report.

This report examines the role of Designated Operational Entities (DOE) and is written to aid project developers in the implementation of small-scale household energy carbon projects such as water filter, cookstove and, biodigester projects. The research methodology has been designed to be repeated to provide ongoing support to household project developers and feedback to DOEs and other market participants. The full report can be downloaded from Nexus’ website http://www.nexus-c4d.org/news/publications.

Nexus is a nonprofit cooperative of development organizations – social enterprises and NGOs – leveraging carbon finance to increase their impact on poor and rural communities, local economies, and climate change mitigation. By joining forces, members reach economies of scale and reduce risks from the incubation of projects to the sale of carbon credits.

Webinars

Join one of two webinars introducing the report on November 26 or 27. Additional details and registration links can be found on Nexus’ website: http://www.nexus-c4d.org/news/news-updates/331-webinar-performance-of-designated-operational-entities-in-household-energy-projectsq