A group of European investors is to buy carbon credits from emissions reductions made after 2012.

Such deals are rare because most investors don't want to buy credits until clearer signs emerge on the structure of a climate deal to replace the Kyoto protocol.

The fund, known as the Post 2012 Carbon Credit Fund, today said it would buy 1.15 million UN-backed carbon credits from a Chinese wind farm and a Mexican waste-to-energy project.

“The fact that the fund is now contracted as a buyer of post-2012 certificates is proof of the fund’s viability in these difficult markets," said Urs Brodmann, a board member with asset manager First Climate, a Swiss-based company that advised on the deal.

He added that that project developers should be encouraged to plan further emission reduction projects, as they can sell certificates to the fund at a guaranteed price and use the proceeds for financing projects.

"This could be done "regardless of the outcome of ongoing UN negotiations concerning the post-Kyoto regime,” Brodmann said.

The fund was established by five leading European public financing institutions – the European Investment Bank, Caisse des Depots, Instituto de Credito Oficial, KfW Bankengruppe and the Nordic Investment Bank.


Source: www.pointcarbon.com/news/1.1046271