Clean Development Mechanism - Carbon Offsets

The La Esperanza Hydro project was the first project in the world to generate CER’s under the Clean Development Mechanism (CDM).  These initial offsets have been sold to the International Bank for Reconstruction and Development (IBRD) and have specific community benefits attached to them.  CISA has ensured its commitment to meet and exceed the required benefits stated in the Emission Reduction Purchase Agreement ( ERPA).

CISA has achieved the following:

  1. Working with the utility company ENEE to provide regulated electrical power to La Esperanza and the surrounding communities.
  2. CISA has employed 120 employees during construction and still employs over 70 local people of La Esperanza and the surrounding communities through its contracted construction and environmental companies.
  3. CISA electrified the community of Santa Anita before August 2006.  There were 55 households in this community at the time.
  4. CISA helped electrify the community of San Fernando through a $13,000 donation of electrical supplies.
  5. CISA has repaired the main road into Santa Anita and maintained it during the construction phase and early operating period of the project.
  6. CISA has planted an average of over 25,000 trees per year since 2002.
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 In 2008 CISA hopes to achieve the Gold Standard for its CERs with the help of OneCarbon and Atmosfair GmbH.   The La Esperanza Hydro project now sells offsets to Atmosfair as well as the IBRD.

CISA has completed the following additional benefits

  1. Provided training to workers in the areas of Industrial first aid, welding, mechanics, environmental mitigation, organic composting, environmental health and sanitation training.
  2. Manufactured school desks and donated them along with school supplies to local Santa Anita school.
  3. Provided financing for some employees who needed short term loans for medical bills, home construction projects, and bicycles to get around on.
  4. Sponsorship of 10 local students to complete their primary education and secondary education.
  5. CISA works with local schools and provides the opportunity for work experience projects for local students.  CISA has presently had interns in the area of office administration as well as electrician students and environmental engineering students
  6. Assists and supports the employees to open and operate bank accounts.
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The La Esperanza Hydro Project puts a considerable effort towards protecting local biodiversity.  We manage the private land where the project is located and try to limit the illegal cutting of trees and poaching.

The greatest challenge CISA has undertook has been the maintenance of the power line from La Esperanza to the Comayaga substation. The power line is approximately 100 km and the national utility company ENEE has not had the resources to maintain it.  CISA with its own equipment and employees has cleared the transmission line right away to limit the number of trees that can touch the line causing numerous outages and line and equipment damage.  The electrical consumers and clients including the CISA project has been suffering with numerous power outages especially during wind storms, averaging more than 18 per month.  In a first world electrical distribution system there is normally not more than six outages per year.  The problems these outages have caused have been costly for the project with generators and line equipment failing as well as controls failing due to the stress of continual power outages.  In order to reduce the number of these outages CISA has supplied new HV switches, line hardware and labor to clear the transmission corridor.  This has resulted in less outages on this line for the last three months providing more reliable power to the many thousands of users along this ENEE distribution line. 

If you have any questions regarding specific obligations attached to the sale of CDM gold Standard CERs please contact us.