Carbon Finance Home
Projects and Participants Home
About Us
Carbon Funds and Facilities
>> Prototype Carbon Fund
>> The Netherlands CDM Facility
>> Community Development Carbon Fund
>> BioCarbon Fund
>> Italian Carbon Fund
>> The Netherlands European Carbon Facility
>> Danish Carbon Fund
>> Spanish Carbon Fund
>> Umbrella Carbon Facility T1
>> Umbrella Carbon Facility T2
>> Forest Carbon Partnership Facility
>> Carbon Partnership Facility
>> Carbon Fund for Europe
>> About
>> Participants
>> Projects
>> Document Library
>> Partnership for Market Readiness
>> Carbon Initiative for Development
For Project Developers
Methodology
Projects
Capacity Building
News & Events
Document Library
Search
 
Site Tools
Carbon Finance Helpdesk
Glossary of Terms
Frequently Asked Questions
Related Links
My Page



About Carbon Fund for Europe (CFE)

Introduction
The CFE is established as a trust fund administered by the World Bank, in cooperation with the the European Investment Bank (EIB). It is designed to help European countries meet their commitments to the kyoto Protocol and the European Union's Emissions Trading Scheme (EU ETS). The CFE was launched in March 2007, when the target capitalization of Euro 50 million was reached. The following five Participants are part of the CFE: Ireland, Luxembourg, Portugal, Flemish Region and Statkraft Carbon Invest S.A. (Norway). The CFE is thus fully funded and no additional Participant is envisaged.

How does the CFE work?
The Fund will purchase greenhouse gas emission reductions through the Kyoto Protocol’s CDM and JI from climate-friendly investment projects from either bank’s portfolio, as well as from stand-alone projects. Through the CFE, the two institutions will help developing countries achieve sustainable development by fostering investment in clean technology projects, complement private sector development in the emerging carbon market, and, seek ways to support essential private carbon market development.

The Fund acquires greenhouse gas reductions on behalf of the participants and helps project sponsors develop projects intended to reduce greenhouse gas emissions. The CFE is directed towards the EU Member States and the European private sector. Carbon credits will be purchased from projects eligible under the Kyoto Protocol’s CDM and JI and will be compatible with the EU ETS in order to facilitate the participation of private companies with EU emission reduction requirements.

The CFE will purchase greenhouse gas emission reductions from projects in the developing world or in countries with economies in transition for the account of the fund participants, and pay on delivery of those emission reductions. The emission reductions can be used against obligations under the Kyoto Protocol or for other regulated or voluntary greenhouse gas emission reduction regimes.

© The World Bank Group, All Rights Reserved.     Legal Disclaimer