The International Finance Corporation (IFC), an investment arm of the World Bank, has this week stepped up its presence in the global carbon market inking its first carbon delivery guarantee agreements in Sub-Saharan Africa and South Asia.
The organisation said the two new deals would help bolster the emerging carbon markets in both regions and help provide valuable funds for carbon reduction projects. It added that the aim of the agreements was to limit project risks and "give companies selling carbon credits the chance to access a wider range of potential buyers".
The IFC has agreed to acquire 900,000 carbon credits from one of South Africa's leading fertiliser producers, Omnia, generated as a result of the company's investment in a new nitrous oxide destruction facility.
It has also signed a deal to buy 850,000 credits from India-based Rain CII Carbon, the largest global merchant of calcined coke. Indian Company Rain used IFC financing to install waste heat recovery facilities, designed to cut the company's energy use and carbon footprint.
The carbon delivery guarantee will enable the IFC to distribute carbon credits from the two company's projects to buyers in developed countries and " pass an attractive price back to the projects".
The deal forms part of the Kyoto Protocol's Clean Development Mechanism, whereby businesses in developing countries can qualify to sell Certified Emission Reductions (CERs) in global commodity markets, providing they decrease their output of greenhouse gases.
Presidential hopeful plans to deliver US emissions trading scheme as energy official insists carbon regulations are inevitable 09 Oct 2007
As Greece is suspended from UN carbon trading scheme, verification firm insists mechanism is on track to deliver over 2.7bn tonnes in emission reductions 23 Apr 2008
Expansion of carbon market into Asian time zone would result in stronger price signals for European traders 29 Apr 2008
As the International Maritime Organisation agrees new rules to curb air pollution from shipping, new figures suggest urgent action on carbon emissions is needed 08 Apr 2008
Mayor of London and EU commission BSI to draw up transport specification for public and private sector 09 May 2008
UN report backed by latest figures from wind and solar sectors 09 May 2008
Small businesses and individuals can produce their own biofuels 09 May 2008
More news
In the second in our series on green banking, Victoria Pennington explores how reputational risks are forcing financial services firms to embrace the environmental agenda 08 May 2008
In the first of a three-part series, Victoria Pennington explores how environmental issues are affecting the financial services industry and informing banks' credit and market risk assessments 08 May 2008
Former senior advisor to the UK Prime Minister's Strategy Unit, Nick Mabey, warns that governments and businesses must begin to frame climate change as a global security issue 07 May 2008 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
