Tuesday, June 6, 2006
MIGA recently announced its first-time support for a project that will sell carbon credits gained by reducing greenhouse gas emissions. The reductions, which can be sold under the Kyoto Protocol, will result from the conversion of methane gases to less harmful carbon dioxide at a landfill in El Salvador.
MIGA is supporting the project by providing $2 million in guarantee coverage (insurance) to Canadian company Biothermica Energy Inc. The guarantee assures the investor of reimbursement in the event that a harmful political event-including expropriation, war and civil disturbance (including terrorism), and breach of contract-puts a stop to operations. MIGA's coverage also guarantees the Salvadoran government's certification (or letter of approval) of the carbon reduction, issued under the Clean Development Mechanism of the Kyoto Protocol.
MIGA's announcement is accessible here