May 28, 2009 / 10:32 AM / 9 years ago

EIB post-2012 carbon fund buys 4 mln Kyoto offsets

BARCELONA, May 28 (Reuters) - The European Investment Bank’s post-2012 carbon fund has agreed to purchase a further 4 million Kyoto carbon offsets from green projects in Asia, Africa and Latin America, the fund’s advisors said on Thursday.

The 125 million euro ($174.3 million) Post 2012 Carbon Credit Fund has contracted wind energy, waste management and energy efficiency projects, which should generate a total of more than 4 million U.N. approved Certified Emissions Reductions (CERs) from 2013-2020, First Climate said.

The Fund agreed to buy an initial 1.15 million CERs from green projects in January.

The value of the transaction was not announced, but CERs for delivery in 2012 CEREZ2 traded at 13.30 euros a tonne on Thursday. “By signing these ERPAs (emissions reductions purchase agreements) with the fund, the project developers concerned have converted their carbon credits into a bankable revenue stream, while significantly reducing the risks they have in today’s carbon credit market,” First Climate said in a statement.

Among the projects is a wind energy project in India which will feed a total of 49 megawatts of electricity into the regional grid.

“This is an exciting project because once registered it will generate a total of some 700,000 CERs in the period 2013-2020,” said Urs Brodmann at First Climate, one of the fund’s advisors.

The Fund has also contracted a landfill project in Nigeria, Africa, which is expected to generate 260,000 CERs in 2013-2017.

The Fund was launched in early 2008 by the EIB with France’s Caisse des Depots, Spain’s Instituto de Credito Oficial, Germany’s KfW Bankengruppe, and Finland’s Nordic Investment Bank.

The Fund buys CERs to be issued under the Kyoto Protocol’s Clean Development Mechanism (CDM) for clean energy projects in developing countries after 2012.

With Kyoto set to expire in 2012, the fate of the CDM is uncertain as governments scramble to agree a successor agreement. Absence of a new pact would cast further uncertainty onto the $126 billion international carbon market.

Reporting by Nina Chestney; Editing by Peter Blackburn

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