Scaling-up Community Carbon Projects A roadmap - Plan Vivo
Scaling-up Community Carbon Projects A roadmap - Plan Vivo
Scaling-up Community Carbon Projects A roadmap - Plan Vivo
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projects are necessarily small-scale and<br />
can only represent a niche market.<br />
· <strong>Projects</strong> should target high profile<br />
buyers that will endorse community<br />
focused approaches and increase<br />
project visibility.<br />
Financial barriers (start-<strong>up</strong> costs)<br />
Start-<strong>up</strong> costs for community carbon<br />
projects will vary significantly depending<br />
on the size of project and activities to be<br />
undertaken, and the level of existing<br />
social, technical and administrative<br />
capacity.<br />
Financial barriers in terms of covering<br />
start-<strong>up</strong> costs for project development<br />
tend to be key for communities and<br />
project developers, particularly where<br />
projects start small and will need time to<br />
scale-<strong>up</strong>, lower transaction costs and<br />
achieve economies of scale.<br />
Key financial barriers to entering the VCM<br />
were identified as follows:<br />
· Uncertainties about project<br />
development costs and lack of<br />
information about development costs<br />
can act as a deterrent to potential<br />
project developers and investors.<br />
· High transaction and opportunity costs<br />
are often associated with land-use<br />
projects working with multiple smallscale<br />
participants.<br />
· Funding models used may not always<br />
promote equitable distribution of<br />
benefits and ensure payments reach<br />
the grassroots level, which is essential<br />
to ensuring participants are<br />
empowered and incentivised to<br />
participate in the long-term.<br />
Potential actions were identified to<br />
address financial barriers:<br />
· Uncertainties about project<br />
development costs could be reduced by<br />
streamlining and simplifying<br />
methodologies used to develop<br />
projects. Standards organisations could<br />
play a role in providing more<br />
information on typical start-<strong>up</strong> costs<br />
and cost breakdowns to increase<br />
information available for potential<br />
investors.<br />
· Exploring ways to aggregate projects<br />
and move towards scheme or<br />
programme level approaches,<br />
particularly in terms of how projects<br />
are audited could reduce development<br />
and operational costs.<br />
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