IFC is working with its partner financial institutions in emerging markets to stimulate lending to Clean Development Mechanism projects. As part of this effort, IFC has developed an Excel-based CDM Appraisal Toolkit (CATK). The CDM Appraisal Toolkit aims to provide financial institutions with an analytical tool to assess risks associated with carbon revenues generated by CDM projects and assess potential lending opportunities against such carbon revenues. A separate manual provides a step-by-step guide for FIs on how to use this toolkit.
The CDM Appraisal Toolkit consists of a set of interlinked Excel-spreadsheets that use historical performance data for Clean Development Mechanism (CDM) projects to assess expected delivery of carbon credits and carbon finance revenue streams for individual projects. Checklists for common technologies complement historical performance information. Outputs from the CATK are presented in an Assessment Report which summarizes carbon credit issuance analysis results, discounted CER cash flow, project risk summary, qualitative risk analysis, and carbon finance cash flow for debt service.
The CDM Appraisal Toolkit is available to IFC partner FIs as part of the IFC Advisory Services product to enable FIs to enter carbon markets. We are grateful to the government of the Kingdom of the Netherlands for funding this toolkit.