Benefits and Challenges of Climate Projects
Potential Income for Local Governments from Climate Projects (partial extract)
Examples of Key Actors in the Climate Ecosystem and their Roles (partial extract)
Potential Local Government Actions (partial extract)
Possible Funding Mechanisms and Contract Types (partial extract)
LGs must consider the full range of contracts needed to develop and operate Climate Projects, leveraging private sector expertise and capital:
→ Service Level Agreements (SLAs): Insome cases, the LG may contract a private sector company to deliver the service. This approach does not require the establishment of a separatelegal entity. In some cases, the private company uses its own balance sheet toraise debt to fund the project.
→ Engineering Procurement Construction (EPC) contracts: To construct complex infrastructure used by a Climate Project (such as Waste-toEnergy Projects), an EPC Contract between the LG and the contractor pays the contractor to deliver a complete contract for a fixed price by a fixed date, reducing the risk of cost overruns and non performing technology.