The fund will purchase greenhouse gas emission reductions through the Kyoto Protocol’s Clean Development Mechanism (CDM) and Joint Implementation (JI) from climate-friendly investment projects from either bank’s portfolio as well as self-standing projects.

Four governments and one company make up the Euro 50M carbon fund – Ireland, Luxembourg, Portugal, and the Flemish Region together with Statkraft Carbon Invest (Norway).

The fund may purchase carbon credits generated by a project beyond 2012, up to a limit of 40%. Projects are prepared, appraised and financed either by the World Bank or the EIB directly or through implementing entities and should be able to offer a minimum annual emission reductions volume of 100,000 tonnes of carbon dioxide equivalent.