Bad  Vilbel  –  Frankfurt  /  Zurich,  November  28,  2008  –  The  14th Conference of the Parties to the UNFCCC (COP 14) and the 4th meeting of the Parties to the Kyoto Protocol to be held from December 1-12 in the Polish town of Poznan is expected to take decisions with direct  relevance  to the future  of the  carbon market and  in particular  as  to  its future design and direction. The final deal is to be agreed at the UN Conference in Copenhagen in December 2009. 
 
“We call on participants to reach an agreement on the main political principles for the post-2012 era in order to pave the way to the final deal in Copenhagen”, says Urs Brodmann, Member  of  the  Board  of  First  Climate,  one  of  the  global  leaders  in  carbon  asset management. And he adds: “The agreement should include a long-term global emissions target  and  a  more  stringent  mid-term  target  for  the  developed  countries.”  According  to Brodmann, such an agreement would send a much needed positive signal to the carbon market,  ensuring  continuity  beyond  2012  and  providing  an  indication  of  the  potential demand for future emission reductions.
 
The  Kyoto  Protocol  currently  sets  emission  targets  for  developed  countries  only  up  to 2012. The uncertainty about a successor agreement limits the incentives for investments in  emission reductions to  be achieved  after  2012.  An  agreement providing  continuity  for the  Clean  Development  Mechanism  (CDM)  is  expected  to  unleash  a  huge  potential  for efficient  climate  protection  and  sustainable  development  in  developing  countries  and  in emerging  markets  like  India  and  China.  This  opportunity  should  not  be  jeopardized  by unnecessarily drawn-out discussions.
 
To  bridge the looming financing  gap and  to  build  confidence  in  the future  of  the  carbon markets until the successor to the Kyoto Protocol has taken shape, five European public financing  institutions  under  the  lead  of  the  European  Investment  Bank  (EIB),  have launched  the  Post  2012  Carbon  Credit  Fund.  This  novel  fund,  which  aims  at  promoting innovation  in  climate  change  investment,  will  be  presented  in  Poznan  by  the  EIB.  The EUR   125   million   vehicle,   managed   by   the   Swiss-Re   subsidiary   Conning   Asset Management (Europe) Limited and advised by First Climate, is to stimulate the market for emission reduction credits generated after 2012.  
 
“We also expect the conference to agree on improvements to the current CDM and Joint Implementation  regimes”, Brodmann  points  out. This  would increase the  predictability  of these mechanisms by clarifying and simplifying their rules and improving their governance. Ultimately,  this  would  allow  for  a  larger  number  of  climate  protection  projects,  including new types of projects such as Carbon Capture and Storage (CCS).
 
As of Monday, delegates from about 200 countries will gather in Poznan for two weeks to discuss  the  future  of  the  international  climate  protection  regime.  First  Climate’s  Senior Analyst  for  international  climate  policy,  Ms  Alina  Averchenkova,  will  be  in  Poznan  to analyze, evaluate and report on the developments in the negotiations as they happen.


First  Climate  is  one  of  Europe’s  leading  carbon  asset  management  companies.  With  offices  on  four continents and more than ten years’ experience in the market, it is one of the few intermediaries to cover the entire carbon credit value chain. First Climate develops, finances, and implements CDM, JI, and VER projects, purchases the resulting carbon credits, and customizes trading solutions for companies subject to  the  EU  ETS.  As  investment  advisor  to  several  institutional  investors,  First  Climate  structures  and develops  carbon  funds  and  related  products.  In  the  voluntary  market,  the  company  provides  VERs verified according to the highest international standards. First Climate is one of the main sponsors of the Gold Standard Version 2.


Contact:
First Climate
Fritz Wilhelm
Head Corporate Communications
Tel.: +49 (0)6101 - 5 56 58 - 34
Fax: +49 (0)6101 - 5 56 58 – 77
Mobile: +49 (0)160 – 96 37 60 46
E-Mail: fritz.wilhelm@firstclimate.com

First Climate
Alina Averchenkova
Senior Analyst International Climate Policy
Tel.: +41 (0)44 298 28 85
Fax: +41 (0)44 298 28 99
Mobile: +41 (0)79 228 53 97
E-Mail: alina.averchenkova@firstclimate.com