The Japan Bank for International Cooperation (JBIC) has signed a protocol with Brazil’s Unibanco for a loan to assist Clean Development Mechanism (CDM) projects in Brazil.
The loan will support CDM projects in Brazil by financing their capital investment and associated working capital through Unibanco. There are a number of candidates, including power generation and methane gas collection projects. JBIC will discuss the specifics of the loan agreement with Unibanco based on the terms set out in this protocol.
Japanese companies will be able to acquire certified emissions reductions through involvement in the CDM projects. The loan will therefore help Japan to achieve its target of reducing greenhouse gas emissions by 6% from 1990 levels under the Kyoto Protocol.
JBIC will continue to cooperate with Brazil’s energy and natural resource projects and to support Japanese companies’ activities in Brazil, thereby strengthening economic relations between the two countries.
The Clean Development Mechanism (CDM) is one of the Kyoto Mechanisms. It enables industrial countries to undertake joint GHG emissions reduction projects with developing countries, with the investing country (industrial country) being allowed to use emissions reduction credits (called certified emission reductions – CERs) generated from such projects to meet its own GHG emissions reduction target.