The main steps related to the selling of carbon credits were the following:
- June 2006 : Coverage secured from the Multilateral Investment Guarantee Agency
- December 2006 : Signature of an Emissions Reductions Purchase Agreement with the government of Luxemburg
- January 2007 : Certification by Designated Operational Entity
- March 2007 : First delivery of carbon credits
Multilateral Investment Guarantee Agency (MIGA) coverage
MIGA is one of the World Bank Group’s institutions dedicated to the private sector. Its mission is to promote foreign direct investment (FDI) into developing countries to help support economic growth, reduce poverty, and improve people's lives.
MIGA is supporting the Nejapa project by providing $2 million in guarantee coverage (insurance) to Biothermica. The guarantee assures the company 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. This is MIGA’s first-ever support for a project that will sell carbon credits gained by reducing greenhouse gas emissions
By removing non commerical risks, the MIGA coverage allowed Biothermica to optimize financing conditions while providing the company with the necessary level of comfort to commit its own capital in a country displaying political risks.
Sale of credits to the government of Luxemburg
In December 2006, Biothermica and the government of Luxemburg signed an Emission Reduction Purchase Agreement. Under this contract, both parties agreed on the modalities of the purchase, by the government of Luxemburg, of a determined amount of emissions reductions generated by the Nejapa project.
On February 6, 2007, Biothermica announced the first trade of credits, agreeing to sell 325 000 Certified Emissions Reductions to the government of Luxemburg. This trade demonstrates the ability to leverage carbon markets to bring the latest landfill gas-to-energy technology to Latin America, ultimately benefiting the global environment.