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MCCF to support Spain fulfil its Kyoto Protocol commitments
The Spanish government and the European Bank for Reconstruction and Development have signed an agreement under which Spain is contributing €25 million to the Green Carbon Fund.
The Fund is part of the Multilateral Carbon Credit Fund (MCCF) sponsored by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The MCCF, launched in December 2006, consists of the Project Carbon Fund, and the Green Carbon Fund.
The Project Carbon Fund has commitments of €150 million from six countries and six companies, including a €35 million contribution from Spain. The Green Carbon Fund is dedicated to Green Investment Schemes (GIS) and as of today has commitments from Spain and Ireland totalling €40 million.
The Green Carbon Fund under the umbrella of the MCCF is in a unique position to facilitate and help structure the government-government trade in Assigned Amount Units (AAUs) under Article 17 of the Kyoto Protocol. The selling country will agree to use the revenue from the sale of AAUs to support investments in climate-friendly projects, called “green” projects, beneficial for the environment and specifically oriented to reduce greenhouse gas (GHG). The MCCF aims to facilitate the “greening” of the AAU sale proceeds through co-financing underlying projects with the EBRD or EIB.
The European Investment Bank (EIB) is the European Union’s long-term lending bank, promoting European objectives. Established in 1957, it operates within the 27 EU Members States and in more than 130 countries outside the EU. One of the EIB’s priority objectives is the protection and improvement of the environment, which accounted for 38% of EIB loans within the EU-27 in 2007.
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