Work begins on setting up a Mediterranean Carbon Fund
- Release date: 17 June 2010
- Reference: 2010-103-EN
CDC Climat a newly created Caisse des Dépôts subsidiary, French Development Agency AFD, PROPARCO, the European Investment Bank (EIB), Cassa depositi e prestiti (CDP) and KfW Bankengruppe, the German promotional bank (KfW), have joined forces to study and promote the creation of a Mediterranean Carbon Fund (MCF).
The initiative, designed to support deployment of climate friendly projects around the Mediterranean, has been launched within the scope of the Union for the Mediterranean (UfM). It will provide expertise on the country-level and additional financing to projects developed in southern and eastern Mediterranean. The MCF will use carbon credits generated under the Clean Development Mechanism (CDM), covering renewable energy, waste management and energy efficiency projects. Consistent with the 2008 European Union climate and energy package, these credits can be created until 2020.
The fund will bring together five European public financial institutions with strong experience in carbon markets and in developing projects in the region. They will be able, in an open partnership, to provide long term support for the initiative, in cooperation with financial partners from the southern and eastern Mediterranean, which could participate in the Mediterranean Carbon Fund under a more restricted geographical mandate.
The Mediterranean Carbon Fund is expected to be set up during 2011. Its size will be based on an evaluation of the volume of carbon credits potentially generated by projects under the CDM and could be delivered by 2020 in the region, including Jordan. The overall fund size could reach EUR 200m.
To guarantee the number, current status and quality of the projects, the Mediterranean Carbon Fund will be supplemented by an upstream study and technical assistance facility. This facility will aim to provide effective support to project developers, particularly to prepare registration of projects by the CDM Executive Board.
Notes to editors:
CDC Climat is Caisse des Dépôts’ subsidiary launched in 2010 to tackle climate change by taking action in three areas: investment in carbon assets, development of carbon market services and research into climate change economics. www.cdcclimat.com
AFD stands for the Agence Française de Développement. AFD is a public development finance institution that has worked to fight poverty and support economic growth in developing countries and the French Overseas Communities for almost 70 years. AFD executes the French government’s development aid policies.
Through offices in more than fifty countries and nine French Overseas Communities, AFD provides financing and support for projects that improve people’s living conditions, promote economic growth and protect the planet: schooling, maternal healthcare, help for farmers and small business, water supply, preservation of tropical forests, and fighting climate change, among other concerns. www.afd.fr
PROPARCO is a Development Financial Institution partly held by Agence Française de Développement (AFD) and private shareholders from the North and South. PROPARCO’s mission is to be a catalyst for private investment in developing countries which targets growth and sustainable development. www.proparco.fr
European Investment Bank
The European Investment Bank, the long-term lending institution of the European Union, whose shareholders are the 27 European Union member states, has been active across Africa for over 40 years. EIB activities follow policies and objectives set down by European Union member states and whose Finance Ministers are the EIB’s Governors.
Cassa Depositi e Prestiti (CDP)
Founded in 1850, Cassa Depositi e Prestiti (CDP) is a joint-stock company under public control. The Ministry of the Economy and Finance owns 70% of the company, while the remaining 30% is held by a broad group of bank foundations. For 160 years CDP has been pursuing a public interest mission: financing the development of the country. Using postal funding, CDP finances the State, the Regions and other local Authorities and public entities. Using funding raised from institutional investors, CDP finances: projects, plants, networks and other infrastructure to be used to deliver public services, on market terms and conditions. www.cassaddpp.it
KfW Bankengruppe gives impetus to economic, social and ecological development worldwide. As a promotional bank under the ownership of the Federal Republic and the Länder (federal states), it offers support to encourage sustainable improvement in economic, social, ecological living and business conditions, among others in the areas of small and medium-sized enterprise, entrepreneurialship, environmental protection, housing, infrastructure, education finance, project and export finance, and development cooperation. www.kfw.de