Washington, D.C., February 11, 2008—IFC,
a member of the World Bank Group, and ING Bank N.V. of the Netherlands
have signed an agreement to help reduce methane emissions in Ukraine. The
agreement takes place under the Netherlands European Carbon Facility, a
joint facility of the World Bank Group and the Dutch government. IFC will
purchase up to 550,000 emission reduction units from ING, using the Dutch
government’s funds. The reductions will come from several projects in
Ukraine. The Dutch government will then use the purchased emission reductions
to comply with its commitment under the Joint Implementation Mechanism
of the Kyoto Protocol.
The first project under the agreement is the Krasnodonugol coal mine, which
has installed a system that uses clean-burning methane, rather than coal,
in boilers, providing heat and hot water at the mine while reducing emissions.
The project captures methane, which has a global warming potential of about
21 times that of carbon dioxide if released. Ukrainian law does not require
such abatement of methane at coal mines. ING Wholesale Banking is working
with several companies to help them monetize emission reductions from project
Peter van Eijndhoven, Vice President of Emissions Products, ING Wholesale
Banking, said, “IFC and ING have a long-standing business relationship,
and we are happy to expand this by working together on emission reduction
projects. The success of this transaction can be attributed to the professionalism
and knowledge of carbon market specialists at both organizations, as well
as to ING Wholesale Banking’s local presence and long-established client
relationships in Ukraine. We expect that our expertise and local presence
will lead to further emissions reduction opportunities in the region, and
we will be happy to partner with IFC on these.”
Vikram Widge, head of IFC's Carbon Finance Unit, said, “Through this deal,
we are supporting the reduction of dangerous coal mine methane emissions
in Ukraine and creating a business case for transforming fugitive emissions
into heat or power. We hope this will have a demonstration effect and that
the business model will be replicated throughout the country."
IFC manages two carbon purchase facilities on behalf of the Dutch government.
IFC also offers several financial products for the growing carbon market,
including a carbon delivery guarantee for projects that generate emission
reductions and loans against emission reduction purchase agreements. For
more information on IFC’s carbon finance offerings, visit www.ifc.org/carbonfinance.
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 syndications 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.
About ING Bank, N.V.
ING is a global financial institution of Dutch origin. It offers banking,
insurance, and asset management to over 75 million private, corporate,
and institutional clients in more than 50 countries. With a diverse workforce
of about 120,000 people, ING comprises a broad spectrum of prominent companies
that increasingly serve their clients under the ING brand. ING Wholesale
Banking is one of six businesses of ING Group and is responsible for providing
financial products and services to corporate and institutional clients
across Europe, the Americas, and Asia. Emissions Products is part of ING
Wholesale Banking. Through offices in Amsterdam and Shanghai, the team
offers a range of services related to the Kyoto Protocol, and the creation
and sale of carbon credits. ING entered the Ukrainian banking market in
1994, with a wholesale banking business line, offering a full range of
services to corporate clients. The bank is expanding its retail banking
operations in Ukraine. For more information, visit www.ing.com.