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IFC Signs Carbon Emission Purchase Agreement in Brazil


In Washington
Ann Pasco

Phone: 1(202) 473 9167

Email:
apasco@ifc.org


Washington, D.C., July 26, 2005 – The IFC-Netherlands Carbon Facility (INCaF), a joint initiative of the International Finance Corporation and the Dutch government, recently signed two emissions reductions purchase agreements worth more $11 million to purchase greenhouse gas emission reductions from renewable energy projects in Brazil.  Sales of these carbon credits will take place under the Clean Development Mechanism of the Kyoto Protocol and will be used by government of the Netherlands to comply with its commitment under the protocol.  

Carbon credits, unlike the dollars and euros that trade for physical goods and services, are a new money exchange intended to reduce pollution, particularly emissions of carbon dioxide, that is caused by burning fossil fuels. Carbon emissions are the leading cause of global climate change.

In Brazil, Brascan Energetica S.A. (BESA), signed an agreement worth around $11 million to sell carbon emission reductions from several hydropower projects across the country.  BESA is a wholly-owned subsidiary of Brascan Power Corporation, a leading developer of renewable energy projects in North America. The company focuses on the development, ownership, and operation of small-scale hydropower generation plants in Brazil, where the total installed capacity of their six run-of-river projects is currently 101.4 megawatts—clean energy that is displacing fossil fuel-based power generation on the Brazilian grid.   The Brascan Group is already well established in the Brazilian investment banking, real estate and agribusiness sectors.

The mission of IFC
(www.ifc.org) is to promote sustainable private sector investment in emerging markets, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in transition and developing countries, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.