The government's strategy in terms of flexible mechanisms of the Kyoto Protocol has likewise required the consolidation of the most relevant institutional elements. The first measure adopted in this area was the creation of the Designated National Authority (DNA) by means of the Royal Decree Law 5/2004, of 27 August, later modified by Law 1/2005, of 9 March, which regulates GHG Emission Trading. It creates the Designated National Authority as an inter-ministerial commission in which the Autonomous Communities have a representative who acts as the designated national authority with defined functions, which include the issuing of letters of approval for CDM and Joint Implementation projects. In November 2004, the Spanish Government signed a letter of intent with the World Bank to invest 205 Million Euros for purposes of obtaining 40 Mt CO by means of the following Funds: the Spanish Carbon Fund, the BioCarbon Fund, and the Community Development Carbon Fund. Additionally Spain contributes to the World's Bank Programme of Technical Assistance to improve Projects qualification in Host Countries. Likewise, on October 10, 2005 an agreement was signed with the Corporacin Andina de Fomento (CAF) to implement the Latin American Carbon Initiative (LACI), which will allow the acquisition of 9 Mt CO eq in exchange for a public capital investment of 47 Million Euros. Moreover, on September 15, 2006, the contribution of Spain with 35 Million Euros to the Multilateral Carbon Credit Fund (MCCF) was approved; it was promoted and managed by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD). On November 24, 2006 the Council of Ministers approved the participation of Spain in the Asia Pacific Carbon Fund of the Asian Bank of Development (ADB), with a contribution of 30 Million Dollars from the Ministry of Economy and Finance. After closing the first section of the BioCarbon Fund managed by the World Bank, Spain will participate in a second section with a contribution commitment of 5,200,000 US$, between 2007 and 2008, so as to obtain in return the maximum tons of CO that can be purchased with this amount. Together with these actions, it is important to emphasize: (1) the strong investment in carbon Funds managed by multilateral financial institutions which indicate the preference for Latin America; (ii) the use of support instruments in foreign trade, such as the Fund of Viability Studies (FVS) that finances viability studies made by Spanish