MDB Assessment Project - 'Follow the Deal'
Published: 05/06/2021 12:30
The MDB 'Follow the Deal' Project is a partnership between NZLA, Centre for International Sustainable Development Law (CISDL), Green Climate Fund (GCF) and multi lateral development banks. It assesses the role of contracts throughout entire systems in financing transition to net zero both individually and in terms of their systemic interconnectivity.
The Project analyses three existing funded infrastructure projects financed by the MDBs, across different sectors and geographies, for climate mitigation as their primary effect (the "Case Studies"). For each of the three Case Studies:
The project structure will be mapped using StructureFlow technology to identify and track each contractual relationship, structure and instrument across the financing, insurance, ownership, licensing and permitting, construction, implementation, operation and exit/retirement of the entire project life cycle.
The Case Study project structure maps will overlay the quantifiable primary and secondary GHG benefits of the climate change mitigation project, using existing Greenhouse Gas (GHG) Protocols.
The GHG Protocol Initiative is a multi-stakeholder partnership of businesses, non-governmental organisations (NGOs), governments, academics, and others convened by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI). Launched in 1998, the Initiative’s mission is to develop internationally accepted GHG accounting and reporting standards and/or protocols, and to promote their broad adoption.
The GHG Project Protocol is a comprehensive, policy neutral accounting tool for quantifying GHG benefits of climate change mitigation projects. It provides specific principles, concepts, and methods for quantifying and reporting GHG reductions—i.e., the decreases in GHG emissions, or increases in removals and/or storage—from climate change mitigation projects.
The combined project structure and GHG accounting maps for each Case Study – the ‘Contract Carbon Systems Maps’ (CCSM) – will pinpoint legal relationships and contracts governing primary and secondary GHG benefits. Taking those relationships and contracts as a starting point, the Project will: (i) identify existing contractual terms addressing GHG benefits; and (ii) propose new contractual terms or mechanisms to protect and enhance GHG benefits, including but not limited to accounting and reporting requirement.
NZLA aims to share preliminary findings in Glasgow and to finalize results by mid-2022, directly aligning with climate priorities both prior and following COP 26.