The Carbon Finance Unit serves as IFC's in-house resource for all carbon finance-related issues, providing services directly to buyers and sellers. The Unit leads in the development of new products, and serves as an advisor on a variety of products and services to support private sector participation in the evolving carbon market.

IFC is well-positioned to assist project sponsors with participation in the rapidly growing market for 'carbon credits'. Through the Carbon Finance Program, IFC contributes to the development of an important new market for environmental services.

The Carbon Finance Unit brings IFC's extensive experience in project finance to manage long term and credit risks in emerging markets. Carbon Finance products and services include:

• Emission Reduction Purchase Facilities
• Finance Products and Services
  • Carbon Delivery Guarantee
  • Debt and equity for carbon rich products and businesses
  • Monetization of future cashflows from sales of carbon credits
  • Alternative structures and vehicles for sales of Assigned Amount Units
  • Special debt facilities for local banks

Recent Highlights

IFC Signs Carbon Emission Purchase Agreements in Argentina and India
In June 2006, the IFC-Netherlands Carbon Facility, a joint initiative of the International Finance Corporation and the government of the Netherlands, signed two emissions reduction purchase agreements worth more than $6 million each. Under these agreements, IFC will use Dutch government funds to purchase greenhouse gas emission reductions from a landfill gas project in Argentina, as well as from windfarms in the Indian states of Rajasthan and Karnataka. Read more in the Carbon Finance Press Releases...