Polish sustainable energy projects financed by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) could benefit from Assigned Amount Unit (AAU) proceeds thanks to the  joint initiative, the Multilateral Carbon Credit Fund (MCCF).

Under a Green Investment Scheme (GIS) developed between Ireland, Poland and the MCCF, the proceeds of the sale of AAUs could support selected sustainable energy projects financed by the EIB and EBRD, mostly in small and medium sized Polish enterprises.

Ireland has pledged to buy EUR 15 million worth of Poland’s AAUs allocated under the Kyoto protocol through the MCCF Green Fund window. The proceeds from the sale of these assigned amount allowances will be greened through EIB and EBRD projects, that is, support projects that in particular, reduce emissions.

Ireland’s EUR 15 million commitment is expected to leverage financing by the EIB and EBRD to the tune of around EUR 75 million.

Ireland and Poland signed a Letter of Intent to finalise the GIS agreement on Wednesday 10 December 2008 at the UN Framework Convention on Climate Change conference in the Polish city of Poznan.

Multilateral Carbon Credit Fund (MCCF)

The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) established the Multilateral Carbon Credit Fund (MCCF) as a key instrument in their strategy for combating climate change. Fully subscribed, with €190 million in commitments, the MCCF is one of the few carbon funds dedicated specifically to countries from Central Europe to Central Asia.

Further details of the MCCF and the EIB’s other carbon funds including the post-2012 carbon fund can be found on its website at: http://www.eib.org/projects/topics/environment/climate-action/index.htm

The EIB and the environment

The European Investment Bank is the European Union’s long-term lending bank, promoting European objectives. Protection and improvement of the environment and the promotion of clean, secure and sustainable energy sources are both priority lending objectives for the EIB.

EIB environmental protection activities focus on mitigating climate change, reducing pollution, promoting waste management and the sustainable use of natural resources, improving the urban environment and protecting biodiversity. EIB loans for protecting the environment reached EUR 13 billion in 2007 and accounted for 38% of total EIB loans within the EU-27.

The EIB is also a key financing institution for sustainable energy projects. The EIB’s energy strategy focuses on renewable energy, energy efficiency, research, development and innovation (RDI), diversification and security of supply. In 2007 the EIB lent EUR 7 billion in favour of sustainable energy projects, EUR 2 billion of which was dedicated to renewable sources.

In line with the European Economic Recovery Plan endorsed by the Ecofin Council on 2 December, the EIB Group will extend an additional EUR 6 billion annually in 2009 and 2010 in support of clean energy, energy efficiency and low carbon technologies to contribute to a greener EU economy.

Environmental considerations are mainstreamed into all areas of activity at the EIB and the Bank is currently finalising its new Statement on Environmental and Social Principles and Standards. The Statement has been open to two rounds of public consultation.

The EIB in Poland

In Poland, as in the other EU Member States, the European Investment Bank supports investment projects in order to reduce disparities in regional development, strengthen economic competitiveness and improve the living standards and the quality of life. Since 1990, the Bank has committed to provide funds totalling EUR 17.4 billion for projects promoting European objectives in Poland.

Substantial investment will be needed in environmental protection and improvement in the new Member States, notably to help them achieve EU environmental standards in terms of air quality, drinking and wastewater management, and solid urban and industrial waste processing. The EIB plays an important role in this area. Up to 2007, the Bank lent a total of EUR 1.3 billion for water, wastewater and environmental projects in Poland.