Signing of a Memorandum of Understanding on Millennium Development Goal Carbon Facility

On August 19, 2008 Ms. Consuelo Vidal, UN Resident Coordinator / UNDP Resident Representative and Mr. Aram Harutyunyan, Minister of Nature Protection of Armenia signed a Memorandum of Understanding (MoU) on Millennium Development Goal (MDG) Carbon Facility. The core objectives of the MDG Carbon Facility are the broadening access to carbon finance, by enabling a wider range of developing countries to participate in it, and promoting emission reduction projects, which contribute to the MDGs, yielding additional sustainable development and poverty reduction benefits.

"Assisting Armenia with her efforts to cope with the impacts of global climate change and to create more sustainable, less greenhouse gas intensive development paths is an important focus for UNDP in Armenia," said Ms. Consuelo Vidal, UN RC/UNDP RR.

The MDG Carbon Facility operates within the framework of the Clean Development Mechanism (CDM), the market-based mechanism of the Kyoto Protocol that allows developed countries to meet their emission caps by purchasing carbon credits from developing country projects that contribute to reducing greenhouse-gas emissions. UNDP will not at any point purchase or otherwise hold title to the carbon credits generated by the MDG Carbon Facility projects, but rather the role of UNDP is to leverage its core competency of technical assistance in project development.

Having an established track-record in environmental project development, with a large and experienced team and world-class expertise, under the MDG Carbon Facility, UNDP will provide technical assistance to Armenia's emission reduction projects, ensuring that these projects meet the Kyoto Protocol's agreed standards and deliver real, sustainable benefits to the environment and broader human development.

The partnership between UNDP and Fortis Bank, an international financial services provider, covers an initial pipeline of projects which will generate 15 million carbon credits during the Kyoto Protocol's first commitment period (2008-2012).

UNDP is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life. We are on the ground in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the people of UNDP and our wide range of partners. UNDP in Armenia was established in 1993 and supports the Government of Armenia to reach its own development priorities and the Millennium Development Goals by 2015.