The Spanish government has increased its contribution to the Multilateral Carbon Credit Fund (MCCF) by €18.5 million. This new commitment follows the signature in November 2009 of an emissions trading deal between Spain and Poland, facilitated by the MCCF’s Green Carbon Fund.
Launched in 2006 by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), the MCCF is one of the few carbon funds dedicated specifically to countries from Central Europe to Central Asia. It consists of the Project Carbon Fund, and the Green Carbon Fund.
Following Spain’s increased contribution, the total commitments to the MCCF has now reached €208.5 million. The MCCF’s Project Carbon Fund has commitments of €150 million from six countries and five companies, including a €35 million contribution from Spain. The Green Carbon Fund as of today has commitments from Spain and Ireland totalling €58.5 million.
The MCCF’s Green Carbon Fund is dedicated to developing and facilitating Green Investment Schemes (GIS), a greening programme which provides grant finance to project that allows significant greenhouse gas emissions reductions. The Green Carbon Fund is in a unique position to facilitate and structure intergovernmental trading of Assigned Amount Units (AAUs) under Article 17 of the Kyoto Protocol.
Under the MCCF facilitated transactions, selling countries agree to use the revenue from the sale of AAUs to support investments in climate-friendly projects, aimed specifically at reducing greenhouse gas emissions. The EBRD and EIB are supporting the GIS greening projects by providing additional co-financing.