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IFC Starts Operations of €150 Million Carbon Fund to Promote Climate-Friendly Investments

Washi ngton, D.C., May 31, 2011—IFC, a member of the World Bank Group, has started operations of a new fund of up to €150 million to purchase carbon credits, helping to reduce greenhouse gas emissions, extend carbon markets, and increase access to finance for projects that promote environmentally friendly economic growth.
IFC has committed €15 million to the IFC Post-2012 Carbon Facility as part of its first closing, and is mobilizing the remainder from European power utilities and energy companies.  EnBW Trading, GDF Suez and Mabanaft join anchor investors Mercuria Energy, Shell Trading and IFC for a current fund size of €90 million.  Other participants are expected to join before the fund's final closing on June 30, 2011.
The Facility is now operational and will forward purchase Certified Emission Reductions (CERs) expected to be produced from 2013 to 2020 from projects 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 as we approach the end of the first commitment period under the Kyoto Protocol in 2012.  The fund will provide a longer-term high-quality revenue stream from carbon credits and increase financing options for projects that reduce emissions.
Mohsen Khalil, Global Head of IFC’s Climate Business Group, said: “IFC welcomes the many forward looking European energy groups as investors in the fund.  At a time of regulatory uncertainty in the carbon market, this is a clear demonstration of their commitment to continue supporting projects in developing countries that reduce greenhouse gas emissions in partnership with IFC.”  
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 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.
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For more information about EnBW Trading, visit www.enbw.com
For more information about GDF Suez, visit  www.gdfsuez.com
For more information about Mabanaft, visit www.mabanaft.com
For more information about Mercuria Energy Group Ltd, visit www.mercuria.com
For more information about Shell Trading, visit www.shell.com