EIB, Banks To Launch Mediterranean Carbon Fund
Five European public financial institutions on Thursday said they are developing a fund to finance low-carbon projects in poor Mediterranean nations, which could eventually grow to 200 million euros ($245.3 million).
The Mediterranean Carbon Fund (MCF), backed by the European Investment Bank, is expected to launch in 2011 and will generate carbon offsets through 2020 from renewable energy, waste management and energy efficiency projects under the Kyoto Protocol's Clean Development Mechanism (CDM), the group said in a statement.
Southern Mediterranean countries need an estimated 100 billion euros of new infrastructure in the next five years, much of which will go to ensure they avoid blackouts as power consumption grows, analysts say.
The MCF will provide expertise and finance projects in the southern and eastern Mediterranean, which includes Union for the Mediterranean members like Morocco, Algeria, Jordan and Turkey.
Its size will be based on the number of carbon credits potentially generated by 2020 by regional projects registered under the CDM, the group said.
The MCF's other supporters include Germany's KfW Bankengruppe, Italy's Cassa depositi e prestiti, French Development Agency AFD and CDC Climat, a subsidiary of France's Caisse des Depots.
The European Union in December said it is offering to lend southern Mediterranean states 5 billion euros over three years to invest in renewable energy.
The EIB said in May it is launching a similar fund for climate friendly investments in Africa, the Caribbean, Asia-Pacific and Latin America.