IFC to deliver Certified Emission Reductions to Netherlands

New Delhi, Nov 29 (UNI) The International Finance Corporation (IFC), the private sector arm of the World Bank Group, has become the first intermediary to deliver Certified Emission Reductions (CERs) to the Netherlands government.

The CERs come from Eco Power which is reducing emissions by displacing fossil fuel-based power generation from Sri Lanka's national grid with clean renewable energy generated by seven small, run-of-river hydroelectric projects.

''As a global investor and advisor committed to developing a sustainable private sector in emerging markets, IFC is well positioned to help project sponsors participate in this new market,'' said IFC Director (South Asia) Iyad Malas.

IFC is one of four entities engaged by the Dutch government to procure carbon credits for meeting its obligations under the Kyoto Protocol.

It encourages the emerging markets' private sector to participate in the carbon market by providing value-added services to project sponsors.

The IFC-Netherlands Carbon Facility (INCaF), a joint initiative of IFC and the Dutch government, signed an Emissions Reductions Purchase Agreement with Eco Power in August 2005. The bundling is projected to enable Eco Power to sell around 1,15,000 CERs per year from a small hydro capacity of 31 megawatts.

The Clean Development Mechanism of the Kyoto Protocol has established certified emissions reductions as an asset class that can be traded in global community markets. Eco Power Limited has implemented Clean Development Mechanism projects based on hydro generation assets that are displacing fossil fuel-based generation in the Sri Lankan grid (mostly diesel and fuel oil).

CERs are issued by the United Nations Framework Conference on Climate Change, which must first examine their validity. As the Netherlands' intermediary, IFC presented the credits for approval to UNFCCC and upon issuance delivered them to the Dutch government.

The government can now officially use the credits to comply with its Kyoto Protocol commitments.

IFC finances private sector investments, mobilises capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability and provides technical assistance and advice to businesses and governments.

Eco Power, the seller of these emissions credits, is a leading developer and operator of small-scale hydropower generation plants in Sri Lanka.

UNI SRS PV KN1722