ADB Starts Future Carbon Fund to Finance Renewable Energy, GHG Mitigation Projects
December 19, 2008 // Published as a news service by IHS
| |
| IHS Sells Standards & Regulations |
Environment/Safety/Health solutions from IHS include current & historical codes, regs & standards from gov't, int'l & industry sources.
Complete this form for a free quote. |
|
| |
The Asian Development Bank (ADB) received financing commitments of more than $100 million for a new post-2012 carbon fund and will commence its operations in January.
In addition to its founding public sector partners, the ADB is seeking further participation from private businesses.
The ADB-administered Future Carbon Fund aims to provide up to $200 million to finance renewable energy, energy efficiency and other greenhouse gas (GHG) mitigation projects undertaken in its developing member countries (DMCs).
Currently, the Kyoto Protocol provides an international framework for reducing GHG emissions and for the trading of carbon credits. However, the current commitment period expires in December 2012.
By making up-front payments to developers at the outset of a project for carbon credits generated after 2012, the fund will reduce the initial capital constraints involved in projects and stimulate new investment, ADB said.
At the same time, the fund will provide countries or organizations that have, or are developing, GHG emission reduction goals - even in the absence of a global framework - the chance to invest in low-carbon projects in the Asia-Pacific region and receive carbon offsets in return.
ADB said it has exceeded its public-sector funding target for the fund with participants including Finland and Sweden providing approximately half of the total. Seminars are planned in Asia, Europe and North America to invite the private sector from ADB member countries for the remaining half. The main focus will be on companies with large emission footprints, such as power utilities, manufacturers and airlines.
"The Future Carbon Fund is a public-private partnership between ADB and the governments and companies who have decided to act now," Ursula Schaefer-Preuss, ADB vice president, said.
"It seeks to utilize the future value of greenhouse gas reductions and invest into projects that would provide the essential services to the developing communities while protecting the future of our planet," she said.
Source: Asian Development Bank (ADB).