Other Trade-Related Activities > European Bank for Reconstruction and Development (EBRD)

The Multilateral Carbon Credit Fund (MCCF)

The EBRD and the European Investment Bank (EIB) established the Multilateral Carbon Credit Fund (MCCF) as a key instrument in their strategy for combating climate change. Fully subscribed, with €208.5 million in commitments, the MCCF is one of the few carbon funds dedicated specifically to countries from Central Europe to Central Asia.

By joining the MCCF, private and public companies as well as EBRD and EIB shareholder countries can purchase carbon credits from emission reduction projects financed by the EIB or the EBRD to meet their mandatory or voluntary greenhouse gas (GHG) emission reduction targets. In addition to the project credits, countries can also participate via the MCCF in green investment schemes. This is an innovative way to facilitate government-to-government trade in carbon credits whereby the selling country uses the revenue from the sale of carbon credits to support investments in climate-friendly projects.

By selling carbon credits to carbon funds, such as the MCCF, the investor increases the financial return on a project. For example, renewable energy projects (e.g. wind, hydro and biomass) are able to boost their internal rate of return by 1 to 7 per cent. There are also projects, such as landfill gas collection and flaring projects at large waste management sites that can be financed almost completely from sales of carbon credits.

As of June 2012, six countries and five companies had provided initial commitments totalling €208.5 million.

For more information: http://www.ebrd.com

Technical Cooperation Funds Programme (TCFP)

The Technical Cooperation Funds Programme (TCFP) provides funding to improve the preparation and implementation of the EBRD’s investment projects and to provide advisory services to private and public sector clients. It is funded by governments and international institutions and managed by the Bank. Each year the Programme provides about €80 million to finance the activities of a wide range of consultants and other experts. As well as supporting the EBRD’s investment programme, the TCFP promotes institutional reform and the highest standards of corporate governance.

For more information: http://www.ebrd.com