Facility for Performance Based Climate Finance in Latin America

This was an initiative led by KfW and CAF to support sustainable and climate-friendly development and transformation of defined sectors in Latin America through the implementation of performance-based greenhouse gas mitigation activities. The Performace Based Climate Finance Facility was aimed at implementing pilot schemes that led to monitored and verified CO2 equivalent emission reductions and contributed to the overall objective of limiting global warming; designing innovative incentive schemes for sector reform which were linked to achieved emission reductions (performance-based approach); supporting development of showcases for the definition of sector/sub-sector baselines and implementation of robust MRV (monitoring/reporting/verification) systems; supporting the creation of suitable institutional set-ups for the implementation of performance-based sectoral approaches and building the capacities needed within participating institutions for the implementation of mitigation activities.