The European Investment Bank (EIB) has launched a Post 2012 Carbon Credit Fund in contribution with four other leading European public financing institutions. The purpose of this 125 million euro fund is to promote investment in clean energy projects that are to generate carbon credits after 2012.

The Carbon Credit Fund is the first of its kind and will exclusively purchase and trade carbon credits generated from 2012, potentially up to 2022. In this post Kyoto period the Carbon Credit fund will contract from credits under the Kyoto Protocol's Clean Development Mechanism (CDM) and Joint Implementation (JI) schemes. The project-based carbon credits foreseen by CDM and the JI schemes admit these credits to the EU European Trading Scheme, which allow industrialized nations to offset carbon emissions at home by funding "clean" projects in the developing world.

 The scramble of governments to agree on a follow up climate pact when the Kyoto Protocol expires creates uncertainty over the form of any post Kyoto carbon credit trading regime and holds back future longer-term investments. To counter this uncertainty and to promote investment the establishment of the Fund will give a clear signal to the market of the EIB and its partners’ confidence in the development of a post Kyoto regime while directly supporting environmental projects.

Source: Euractiv, Tuesday 29 April 2008, full article