Washington, D.C., August 10, 2005 —
The IFC-Netherlands Carbon Facility (INCaF), a joint initiative of the
International Finance Corporation and the Dutch government, recently signed
an agreement worth $4.5 million to purchase greenhouse gas emission reductions
from renewable energy projects in Sri Lanka. 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.
Eco Power (Private) Limited, the seller of
these emissions credits, is a developer and operator of small-scale hydropower
generation plants in Sri Lanka. International Resources Group, a U.S.-based
energy and environmental consulting services company, facilitated the sale
and will continue to assist Eco Power in complying with related procedures
and requirements.
Carbon dioxide and other greenhouse gas emissions
are considered to be the leading cause of global climate change. They
have become a liability, but the Clean Development Mechanism has established
certified emissions reductions as an asset that can be traded in global
commodity markets. Eco Power will reduce emissions by displacing
fossil fuel–based power generation from Sri Lanka’s national grid with
clean renewable energy generated from seven run-of-river projects that
are in various stages of development and operation. Final installed
capacity will be 31 megawatts. When bundled together, these projects
will enable Eco Power to sell up to 115,000 tonnes per year of certified
emissions reductions.
Rachel Kyte, director of IFC's Environment
and Social Development Department, said, "While IFC has recently signed
other agreements to purchase emission reductions from renewable energy
projects in Brazil and India, this agreement demonstrates the viability
of bundling several small-scale projects in one transaction. We are
pleased to support the commendable efforts of project developers such as
EcoPower."
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 developing and transition 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. From its founding in 1956 through FY04,
IFC has committed more than $44 billion of its own funds and arranged $23
billion in syndications for 3,143 companies in 140 developing countries.
IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its
own account and $5.5 billion held for participants in loan syndications.