The Republic of Slovenia has the potential to generate millions of dollars in carbon revenues over the next 3 to 5 years. These opportunities can be realized through: Implementing Projects that Reduce Greenhouse Gas Emissions or Enhance Sequestration - OECD countries are expected to purchase between 0.5 and 0.8 billion tonnes of emission reductions through investments in projects that reduce emissions of greenhouse gas or enhance sequestration; the so called Joint Implementation mechanism. In Slovenia the following sectors are the main source of greenhouse gas emissions: energy (79%), agriculture (10%), waste (5%) and industrial processes (5%). Emission reductions could potentially be achieved through improving efficiency and reducing losses in energy supply, transmission and distribution; increasing the use of renewable energy resources; reducing waste generation, improving waste management and capturing landfill gas; optimizing fertilizer use and the use of biogas for energy; and promoting the use of public passenger transport and an increase and rail use. While carbon transactions do not address the underlying financing needs of a project, experience has shown that future cash flows from carbon finance enhance the viability of a project. Since carbon revenues are typically payable in strong currencies by buyers with high credit ratings, these revenues can be used to increase a financiers’ confidence in a project and to leverage additional capital from IFIs and others. Timing is Critical - The window of opportunity is rapidly closing due to uncertainty in the carbon market at the end of 2012; the first commitment period under the Kyoto Protocol. Large scale trading opportunities and the majority of project based transactions are targeted at meeting OECD compliance needs up to 2012. This emphasizes the need for quick action given the long lead time between project preparation and the ‘first yield’ of emission reductions. The World Bank Can Help to Realize these Opportunities - The World Bank is Trustee of a number of carbon funds comprising public and private buyers. Over US$1 billion of funds are currently under management, targeted at project based transactions and the purchase of surplus allowances that have been “greened”. Through its experience in the market, the Bank brings to the table its ability to mobilize in-house and external expertise, links to sources of funding and technical support for carbon project development and supervision. The Bank supports host country capacity building through its CF-Assist (grant) program and training provided by the World Bank Institute. Further information is available online [www.carbonfinance.org] and through:
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