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IFC Launches €150 Million Carbon Credit Fund to Promote Climate-Friendly Economic Growth

Washington, D.C., February 2, 2011 —IFC, a member of the World Bank Group, today launched a new fund of up to €150 million to purchase carbon credits to help reduce greenhouse-gas emissions, extend carbon markets, and increase access to finance for projects that promote environmentally friendly economic growth.
IFC will invest up to €15 million in the IFC Post-2012 Carbon Facility and mobilize the remainder from European power utilities and energy companies.  Mercuria Energy and Shell Trading have committed to the facility as anchor investors.  
The facility will forward purchase Certified Emission Reductions that are expected to be produced from 2013 to 2020, from projects either directly financed by IFC or by local banks financed by IFC.  This will ensure that projects can continue to benefit from carbon finance during a period of policy uncertainty in the approach to the end of the first commitment period under the Kyoto Protocol in 2012.  The facility will provide a longer-term high-quality carbon revenue stream and increase financing options for projects that reduce emissions.
Slavko Preocanin, President of Shell Energy Europe, said:  “Carbon markets have a vital role to play in addressing climate change.  Shell fully supports the continued expansion of Clean Development Mechanism projects following the end of the Kyoto commitment period in 2012.  Our focus is on supporting the commercialization of projects with innovative structures, enabling them to reduce greenhouse gases and help mitigate climate change.”
Andrei Marcu, Head of Regulatory Affairs, Environment, and Climate Change at Mercuria Energy said: “Investing in post-2012 reductions at this time is an expression of Mercuria’s confidence in the increasing role for carbon markets in addressing climate change post 2012, and also a great business opportunity. We feel that investing with IFC provides us with a solid partner in navigating these new waters.”
Mohsen Khalil, Global Head of IFC’s Climate Business Group, said: “IFC’s investments in the carbon markets at a time of regulatory uncertainty is an important step that will enable private sector companies to continue to develop projects that cut greenhouse-gas emissions. Supporting carbon finance is a central part of IFC’s efforts to help the private sector address the challenges and capitalize on the opportunities presented by climate change.”  
Tackling climate change in developing countries is a strategic priority for IFC.  IFC plans to double its climate-related investments to at least 20 percent of its overall commitments within two years.  IFC Advisory Services spending on climate change is also expected to double to the same share over the same period.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org .
For more information about Shell Trading, visit www.shell.com
For more information about Mercuria Energy Group Ltd, visit www.mercuria.com .