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By Joshua Kunitz

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In addition to risk minimization, other objectives include the following: i) learning by doing, ii) experimenting with diverse contract structures, iii) influencing policy, iv) broadening the envelope of flexibility, v) public relations, and vi) goodwill (PCF, 2003). The fragmented nature of the global carbon market generates differentiated prices for emissions reductions as shown in Table 1. Allowance markets generate high emission reduction prices since the delivery risks are believed to be minimal.

2. e. 5% instead of 15-25 %, that venture capitalists are seeking; ™ increasing access to affordable capital by a special agreement with banks using the EIAF research analysis and evaluation (both technical and financial); ™ promote the long-term viability of energy sector investments and growth perspectives of Energy Service Companies (ESCo) and related private sector activities in developing countries; ™ complement awareness raising and capacity building efforts; ™ offering increased access to a knowledgeable team of investors that can also provide managerial support to for developing country entrepreneurs (trough joint ventures and EIAF assistance).

Fast-tracking small-scale projects (simplifying the procedures and standardizing the information and reporting requirements) not only reduces transaction costs but also improves project financial viability. According to Ecosecurities (2002), fast-tracked procedures lead up to around 67% reduction in transaction costs. 34 ROMEO PACUDAN Table 2. CDM Transaction Costs Transaction Cost Component Search Costs Transfer Costs Costs incurred by investors and hosts as they seek out partners for mutually advantageous projects Includes those costs incurred in the preparation of the Project Design Document that also documents assignment and scheduling of benefits over the project time period.

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