Washington, D.C., October 11, 2007
— IFC, a member of the World Bank Group, and Core Carbon Group ApS today
signed an agreement to help reduce emissions of nitrous oxide, a greenhouse
gas, by fertilizer producers in Russia. The agreement for 2 to 3 million
emission reduction units falls under the Netherlands European Carbon Facility,
a joint facility of the World Bank Group and the Dutch government. Under
the agreement, IFC will use the Dutch government’s funds to purchase emission
reductions from Core Carbon Group ApS.
In accordance with the Joint Implementation Mechanism of the Kyoto Protocol,
the Dutch government will use the emission reductions to comply with its
commitment. The mechanism allows a country with a Kyoto Protocol emission
reduction commitment to meet part of its target by carrying out a project
to reduce greenhouse gas emissions in another country.
Core Carbon Group ApS works with fertilizer producers to abate nitrous
oxide emissions at their nitric acid production facilities. According to
the agreement with IFC, the company, which functions as developer and investor,
will deliver emission reduction units to be generated in Russia, where
the law does not require such abatement. Nitrous oxide has a global warming
potential of about 310 times more than that of carbon dioxide.
William Shor, CEO, Core Carbon Group ApS, said, “We are pleased to conclude
this transaction with the Netherlands European Carbon Facility. It shows
that with proper attention and care, the quality in developing and documenting
Russia’s Joint Implementation projects can meet the highest international
standards.”
Rachel Kyte, IFC Director for Environmental and Social Development, said,
“Through this partnership, we will be supporting one of the first nitric
acid plants in Russia to abate its greenhouse gases. We hope it will provide
a demonstration effect for other producers of nitrogenous fertilizer in
the country.”
IFC manages two carbon purchase facilities and offers several financial
products, including an AAA-rated carbon delivery guarantee for projects
that generate emissions reductions as well as loans against emissions reduction
purchase agreements from creditworthy counterparties. For more information
on IFC’s carbon finance offerings, visit www.ifc.org/carbonfinance.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
IFC in Russia
Russia became a member and shareholder of IFC in 1993. IFC’s investment
portfolio in the country stands at $2 billion, making it the largest country
exposure for IFC globally. IFC has invested in key sectors including
agribusiness, banking, construction materials, health care, housing finance,
information technologies, infrastructure, leasing, mining, oil and gas,
pulp and paper, retail, and telecommunications. For more information, visit
www.ifc.org/europe.
About Core Carbon Group ApS
Core Carbon Group ApS, a carbon finance company incorporated in Denmark,
is implementing greenhouse gas mitigation projects across Russia. These
include methane leakage reduction by improving pipeline integrity, nitrous
oxide reduction, and methane gas use in landfills and coal mines. For
more information, visit www.corecarbongroup.com.
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