Brazil - Caixa Solid Waste Management and Carbon Finance Project (English)

Ratings for the Caixa Solid Waste Management and Carbon Finance Project for Brazil were as follows: outcome and Bank performance was moderately satisfactory and monitoring and evaluation (M and E) quality was modest. Some lessons learned included: a programmatic approach implemented by a financial intermediary proved to be efficient for identifying and financing multiple carbon finance sub-projects at scale. Alignment of incentives between the municipality, financier, and operator overall reduced risks for all participants and resulted in greater emissions reduction (ERs). The Bank played an essential role in providing technical assistance not only in the design of carbon finance projects but also during implementation. Carbon finance should be complemented with other financing to engage effectively with local stakeholders in the public and private sector. The project’s concept of a programmatic approach (the PoA) to channel clean development mechanism (CDM) resources through Caixa was an efficient way of capturing the benefits derived from avoided greenhouse gas (GHG) emissions. Performance incentives or penalties could have been strengthened both at the financial intermediary level (Caixa) and the implementing entity level (landfill operators).