As per the terms of the agreement, the government will distribute six million energy efficient lightbulbs (CFLs) to 1.5 million poverty-level households throughout Ecuador, which in turn is anticipated to generate 440,000 tones of CO2 emissions reductions per annum.
The Government of Equador will sell the resulting Certified Emissions Reductions (CERs) issued by the UN under Clean Development Mechanism (CDM) to Deutsche Bank under to raise the funds that will recover costs incurred to implement the project.
The transaction reflects the ongoing trend of CERs being traded globally and bought by industrial companies as part of their efforts to comply with emission reduction obligations in Europe and Japan.
Martin Lawless, head of environmental financial products at Deutsche Bank, said: “Deutsche Bank was pleased to work on this groundbreaking transaction with the Government of Ecuador. These types of innovative transactions highlight how the carbon markets can work to reduce climate change. We are delighted to be involved”
