European Investment Bank and World Bank join forces to tackle climate change

The European Investment Bank (EIB) and The World Bank launched the Carbon Fund for Europe (CFE) today in Brussels. The CFE, a trust fund established by the World Bank, in cooperation with the European Investment Bank (EIB), is designed to help European countries meet their commitments to the Kyoto Protocol and the European Union's Emissions Trading Scheme (EU ETS).

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. The CDM and JI are flexible mechanisms of the Protocol, that, under strict conditions, allow industrialized countries to fulfill some of their greenhouse gas emission-reduction commitments through projects in the developing world and in countries with economies in transition.

Four governments and one company make up the Euro 50 million carbon fund. They include: Ireland, Luxembourg, Portugal, Flemish Region and Statkraft Carbon Invest AS (Norway). Welcoming the new Fund, Ireland's Minister for the Environment, Heritage and Local Government, Dick Roche, T.D., said “I am very pleased for Ireland to have the opportunity to participate in such an innovative fund which, in addition to assisting with Kyoto Protocol commitments, seeks to ensure an equitable sharing of benefits between participants and recipients, and to expand knowledge and understanding of the Kyoto mechanisms.”

See full Press Release.