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About Danish Carbon Fund (DCF)

Introduction
The Danish Carbon Fund (DCF) is a private-public partnership that aims to mobilize new and additional resources to address climate change and promote sustainable development. The DCF became operational in January 2005 with an initial capitalization of €26.4 million contributed in equal parts by four Fund Participants—the Royal Danish Ministry of Foreign Affairs and the Ministry of Environment and two private sector companies, Elsam Kraft A.S. and ENERGI E2 — as a facility to purchase greenhouse gas (GHG) emission reductions (ERs). The Fund's First Tranche was subsequently opened to other Danish private sector entities. By June 30, 2005, the DCF included 3 other participants: Aalborg Portland A.S., Maersk Olie og Gas A.S., and Nordjysk Elhandel A/S, and three of the original participants increased their contribution. The DCF's First Tranche closed later in 2005 with a capitalization of €58 million. In 2006, Elsam A/S and Energi E2 A/S merged with four other companies to form DONG Energy A/S. DONG Energy thus holds the rights and obligations of the two original private sector DCF Participants (Elsam A/S and Energi E2 A/S). In 2008, the participations of the 2 participating Danish ministries were novated to a third – newly created – Danish Ministry of Climate and Energy. Thus, the Danish Ministry of Climate and Energy is now the sole representative of the Danish Government in the DCF.

In May 2008, it was agreed to increase the capitalization of the DCF. The full capitalization of the DCF now stands at €89.985 million.

The DCF is open to considering CDM projects throughout the developing world, and as such treats all regions equally, without favoring one particular region over another. It also seeks to contribute to the mitigation of greenhouse gases in countries with economies in transition through Joint Implementation (JI). The DCF has also adopted a pragmatic and flexible approach with respect to the technologies that it considers for its portfolio.

DCF participants are interested in ensuring that smaller communities that are particularly vulnerable to climate change benefit from the CDM and associated sustainable development benefits. A portion of the DCF capital ($5.125 Million) has thus been committed to the World Bank's Community Development Carbon Fund (CDCF).

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