The ERPAs signed by the Fund cover a broad range of technologies including different types of renewable energy, waste management, and energy efficiency. Some of the projects have already been registered under the Kyoto Protocol’s Clean Development Mechanism, while others are at earlier stages.

The Fund is backed by five Aaa-rated European public finance institutions, the European Investment Bank, Caisse des Dépôts, Instituto de Crédito Oficial, KfW Bankengruppe and the Nordic Investment Bank. As a result, the Fund is uniquely positioned to provide optimum security to financiers of climate protection projects beyond the year 2012, when the current emission reduction commitments under the Kyoto Protocol are set to expire.

Simon Brooks, European Investment Bank Vice President responsible for environmental issues, said "EIB, which initiated the Post 2012 Fund and is the largest participant, is very pleased with its development to date. It has shown how European financial institutions committed to the climate change agenda can work together in a truly innovative way. By assuming regulatory risk which the market is not ready for, the fund generated a positive signal to the carbon markets at a difficult time. Lastly, and perhaps most importantly, as the testimonies below demonstrate it is providing a powerful tool for financing low carbon projects."

“As a shareholder, Caisse des Dépôts, through its CDC Climat department, is pleased with the commitment of the Post 2012 Carbon Credit Fund in numerous and various projects that are at early stages, according to its purpose“, said Augustin de Romanet, Chairman and CEO of Caisse des Dépôts. Thus, long-term public investors play an essential role in favour of climate.”

“This initiative strengthens our institution’s commitment in the fight against climate change, backing carbon projects through assuming Post 2012 regulatory risk” stated Antonio Bandrés, ICO’s Head of International Finance.

“With the participation in the Post 2012 Carbon Credit Fund, KfW wants to give an important signal of trust to the initiating post-2012 carbon market: The steady implementation of carbon emission reducing projects has to be continued also in the current phase of uncertainty”, stressed Dr. Norbert Kloppenburg, member of the managing board of KfW Bankengruppe. “This fund illustrates the long-term view of its founding investors in respect of climate protection.”

Johnny Åkerholm, President and CEO of the Nordic Investment Bank, commented on the relevance of the Fund: ”In the continued uncertainty about the future regulatory framework for carbon trading, the Post 2012 Carbon Fund is a clear signal to all stakeholders that there is a basis to go forward, and the positive development of the activities of the Fund shows that this signal is being received. NIB is very pleased to be a partner in this joint undertaking by leading European financing institutions.”

Among the new projects benefitting from signing with the Fund are two recent solar cooker projects in north-western China with an aggregate emission reduction volume of some 450,000 tCO2 post-2012. The project developer there is planning to use the ERPAs signed with the Fund to obtain financing for subsequent projects of the same kind. Urs Brodmann, Member of the Executive Board at First Climate, Investment Advisor to the Post 2012 Carbon Credit Fund, comments: “We are excited about concluding ERPAs with these projects. Not only do they contribute to the sustainable supply of power from renewable energy sources, but they will improve living conditions in the project area substantially. They will reduce the use of fossil fuels, namely coal, which is highly carbon-intensive and a considerable financial burden to the average household in this area. It will also improve sanitary conditions by providing an easy facility to boil drinking water and increase overall health by reducing kitchen fumes. It is a pleasure to support projects that so clearly benefit both our climate and the local community.”

Ju Ning, Managing Director of Clean Air Trade Inc, which co-developed the project, stressed the additional security which has been added to their project planning by signing ERPAs with the Fund: “Both projects are located in Ningxia Hui Autonomous Region, one of the poorest provinces in China. By signing with the Fund, we can now show potential financiers of future activities that projects here are not only desirable from an environmental and socio-developmental perspective, but also economically viable. We can now plan our next steps with more certainty.”

The Fund has further concluded an ERPA to purchase CERs from a methane recovery project at a major liquor manufacturer in Maharashtra state in India. Thanks to the project activity, the company will stop composting waste water in open lagoons, instead a zero effluent system will be constructed which will produce heat and energy for use in the production. The project will reduce emissions by approximately 30,000 tCO2e per year. Deb Mukherjee, Managing Director of EAGA India, advisor to the project developer in this case, commented on the additional benefits he sees in signing with the Fund: "This ERPA offers more than one advantage. Of course we are glad about the security the project now has in terms of future income, but here and now we benefitted from adding the immense experience and knowledge regarding the complexities in the CDM registration process and the willingness and ability of the Fund to help the project with transaction and registration costs."

Today, the Fund continues to look at new investment opportunities. “By now we should have left any uncertainty regarding the second compliance period behind us, but as we can see, the outcome of this week’s negotiations is still wide open,” comments Walter Blasberg, Managing Director of Conning, Investment Manager of the Fund. “In this situation we are pleased to announce that the Fund continues to offer high quality ERPAs to project owners and developers thus providing certainty to the carbon revenues they can expect from their projects.”

The Fund welcomes inquiries from owners or developers of projects that will generate CERs after 2012. Inquiries should be addressed to First Climate, Investment Advisor to the Fund or Conning Asset Management (Europe) Limited, Investment Manager of the Fund.


Contact

First Climate
Fritz Wilhelm
Head Corporate Communications
Tel.: +49 (0)6101 - 5 56 58 - 34
Fax: +49 (0)6101 - 5 56 58 - 77
E-Mail: fritz.wilhelm@firstclimate.com

Conning Asset Management (Europe)
Limited
Markus van der Burg
Director
Tel.: + 44 (0)20 - 7337 1931
Fax: +44 (0)20 - 7337 1941
E-Mail: Markus_VanderBurg@conning.com

European Investment Bank (EIB)
Richard Willis
Press Officer
Tel: + +352 4379-82155
Fax: +352 4379 - 61000
E-Mail: willis@eib.org