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Washington, D.C., July 26, 2011
—IFC, a member of the World Bank Group, has closed the IFC Post-2012 Carbon Facility after it was fully subscribed for €150 million. The fund will extend carbon markets to help increase access to finance for projects that promote environmentally friendly economic growth and reduce greenhouse-gas emissions.
IFC committed €15 million and mobilized the balance of €135 million from EnBW Trading, ESB International, GDF Suez, JP Morgan, Mabanaft, Mercuria Energy Group, PetroChina, and Shell Trading.
The facility, designed to purchase carbon credits generated after 2012, will forward purchase Certified Emission Reductions, or CERs, expected to be produced from 2013 to 2020 from projects directly financed by IFC or by local banks financed by IFC. The fund will ensure that projects can continue to benefit from carbon finance during a period of global regulatory and policy uncertainty as we approach the end of the first commitment period under the Kyoto Protocol in 2012. It will provide a longer-term high-quality revenue stream from carbon credits and IFC expects the fund to support about $2 billion of investment in climate-friendly projects.
Mohsen Khalil, Global Head of IFC’s Climate Business Group, said: “The fact that the IFC carbon fund was ultimately over-subscribed with the participation of such reputable investors demonstrates a strong commitment to carbon markets. It also reflects a belief that there must continue to be price on carbon as a means to address the challenges posed by climate change.”
Tackling climate change in developing countries is a strategic priority for IFC. IFC plans to double its climate-related investments and advisory services to at least 20 percent of its overall commitments within two years.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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