Asian Development Bank (ADB) has setup a new fund which will provide financing for green projects in the Asia Pacific region that can generate carbon credits beyond 2012. The initial fund size is $100 million and could be increased to $200 million if the demand calls for it.
ADB is concerned that since the Kyoto Protocol’s first commitment period expires on 31 December 2012, this could hamper the trading in post-2012 carbon credits. In turn this will affect the interest in developing new clean energy projects and other climate change initiatives in developing countries. And with the lack of long-term price incentives for reducing greenhouse gas emissions, investment trends in green projects could return to normal levels. But with this fund in place, they are hoping that it can stimulate new investments in clean energy projects even before a new international agreement is reached.
ADB Vice President Ursula Schäfer-Preuss said:
The new fund offers an opportunity to take long-term action on climate change now. We cannot afford to wait. We urgently need new sources of financing for clean energy projects to better design the large infrastructure being built across Asia that will lock in emissions for the next 20-30 years. Proper incentives can lead to more balanced, low-carbon investments.
The Future Carbon fund also goes with ADB’s Carbon Market Initiative (CMI) which provides project co-financing facility, carbon credit marketing program, and technical support for project preparation and implementation of CDM-eligible projects and their developers.
Last month ADB also announced that they have a $1B war chest for investing in Clean Energy Projects.
[source]
Category: Misc, Carbon Credits, Asia, Clean Energy
