The fund will purchase greenhouse gas emission reductions through the Kyoto Protocol's Clean Development Mechanism (CDM) and Joint Implementation (JI) from climate-friendly investment projects from either bank's portfolio as well as self-standing projects.
Four governments and one company make up the Euro 50m carbon fund and are Ireland, Luxembourg, Portugal, and the Flemish Region together with Statkraft Carbon Invest (Norway).
The fund may purchase carbon credits generated by a project beyond 2012-up to a limit of 40%. Projects are prepared, appraised and financed either by the World Bank or the EIB directly or through implementing entities and should be able to offer a minimum annual emission reductions volume of 100 000 tonnes of carbon dioxide equivalent.
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