29 April 2008 –
Five European public finance institutions have come together to establish the Eur 125 million Power 2012 Carbon Credit Fund and have confirmed the appointment of Conning Asset Management and First Climate as fund managers.
The fund, the first of its kind, will exclusively purchase and trade carbon credits in the post Kyoto period, possibly up to 2022. The fund is an indication of the EIB and its partners’ confidence in the "post Kyoto regime" a statement said.
"The Kyoto Protocol is set to expire in 2012. Uncertainty over the form of any post Kyoto carbon credit trading regime is currently making it difficult for environmentally worthwhile projects to monetise fully the economic benefits of the emission reductions (ER) they may make after 2012.
The fund will acquire the post 2012 carbon credit streams of projects already approved, or to be approved, by the UNFCCC’s Clean Development (CDM) or Joint Implementation (JI) Mechanisms," the Fund said further in the statement.
Participating banks are:
European Investment Bank-EIB (initiator and principal investor with EUR 50 million),
Caisse des Dépôts (EUR 25 million),
Instituto de Crédito Oficial-ICO (EUR 10 million),
KfW Bankengruppe (EUR 25 million) and
Nordic Investment Bank-NIB (EUR 15 million)
Comments from Participants institutions:
“The EU is at the forefront of international efforts to combat climate change”, said EIB President Philippe Maystadt, “As the EU’s financing arm, our role is to support these efforts by promoting environmental lending and developing carbon markets. This Fund, combined with other EIB carbon and climate change initiatives, positions the Bank as a significant contributor to global climate change efforts.”
Augustin de Romanet, Chairman and Chief Executive of Caisse des Dépôts, avers: “Caisse des Dépôts has been working for a long time to create and promote financial tools to fight climate change. The Post 2012 Carbon Fund is part of such innovative solutions. We are pleased to play a significant role in this initiative alongside our counterparts, European long term public investors.”
“KfW as Germany´s Environmental Bank Nr. 1 is proud to support this Europe-wide initiative. It is the fundamental task of promotional banks to mitigate market failures. The Post 2012 Carbon Fund is an important complement to our own carbon market activities”, KfW board member Detlef Leinberger added.
“We are pleased to form part of this European innovative initiative, which strengthens our institution’s commitment in the fight against climate change,” stated Aurelio Martínez, Chairman of Instituto de Crédito Oficial (ICO).
“For NIB and its member countries in the North, climate change mitigation and adaption are key priorities. Alongside other initiatives the participation in the European Post 2012 Carbon Fund is a way for NIB to address these challenges proactively,” said NIB President and CEO Johnny Åkerholm.
Comments from Fund Manager
"Conning is honored to be a part of the pioneering Post 2012 Carbon Credit Fund which sends a strong signal that this market is indeed viable." said Walter Blasberg, Managing Director of Conning.
"Our consortium is using innovative financial structures for this public/private collaborative effort to achieve these aims."
“As 2012 is approaching, the uncertainty in long-term prices for carbon is increasingly affecting project developers. The Post 2012 Carbon Credit Fund will make additional CDM and JI projects viable by offering guaranteed carbon off-take at attractive prices.” says Urs Brodmann, Executive Board Member of the fund’s investment adviser First Climate, the company recently formed through a merger between the carbon asset managers Factor Consulting and 3C.