Opportunities for GHG Mitigation in Latin America: Carbon Finance and the Clean Development Mechanism

This report discusses the opportunities and challenges for Clean Development Mechanism (CDM) projects in Latin America. CDM is an important tool to improve the viability of many clean technology investments as it offers a number of important opportunities including increasing a project's internal rate of return (IRR) and its impact on project risk and overall credibility. The new and enlarged interest in GHG mitigation and carbon finance since the entry into force of the Kyoto Protocol and the full operation of the CDM provides the opportunity to revise programs and activities as needed to meet beneficiary country needs in this arena.