WASHINGTON, October 8, 2004—The International
Bank for Reconstruction and Development (IBRD) and the International Finance
Corporation (IFC), both members of the World Bank Group, are pleased to
announce the launch of the Netherlands European Carbon Facility aimed at
purchasing greenhouse gas emission reductions. . The Facility, signed together
with the Netherlands’ Ministry of Economic Affairs, will focus on the
acquisition of emission reductions resulting from the implementation of
projects under the Joint Implementation mechanism of the Kyoto Protocol
in the emerging market countries of Central and Eastern Europe.
The Facility will be jointly managed by IBRD and IFC, (the private sector
arm of the World Bank Group), to purchase 10 million tons of emission
reductions for the benefit of the Government of the Netherlands. Eligible
projects include those based on renewable energy, energy efficiency, methane
capture, fuel switching, reduction of industrial emissions, or afforestation/reforestation.
IBRD and IFC have joined in supporting the Netherlands in meeting its objectives
because of the clear convergence with the World Bank Group's market development
and capacity building role for the rapidly growing market for Kyoto Protocol-compliant
greenhouse gas emission reductions. For projects in emerging market
countries in Europe, the purchases will encourage the transfer of cleaner
technologies to reduce emissions at an effectively reduced cost, and will
be of benefit both to the global climate and to the environment in those
countries where the projects are implemented. For developed countries,
such as the Netherlands, this project increases the range of options for
complying with the Kyoto Protocol emission reduction requirements.
Peter Woicke, Managing Director of the World Bank Group and Executive Vice-President
of IFC, said, “This initiative builds on the existing products
of the World Bank Group and underscores our commitment to sustainable development
by actively promoting the new and evolving market for greenhouse gas emission
“This agreement with the World Bank and IFC is an important step
forward and we hope that the Facility will contribute substantially towards
the desired cost-effective fulfillment of the Netherland’s international
climate obligations under the Kyoto Protocol,” said Okko van Aardenne,
manager JI at the Netherlands Ministry of Economic Affairs.
The Kyoto Protocol is a United Nations agreement which calls for
industrialized countries to reduce the levels of their greenhouse gases
between 2008-2012. Emission reductions result from activities that avoid
or reduce the production of carbon dioxide, methane or other greenhouse
gases as compared to a 'business as usual' situation, or from 'sequestering'
carbon in biomass such as forests and soils.