EPV’s investment is earmarked to acquire carbon credits after the Kyoto Protocol's first commitment period, which runs out at the end of 2012 in order to meet compliance needs in Phase III of the EU Emission Trading Scheme. EPV has already placed EUR 29 million EUR in the NeCF, and is now the single largest participant in the fund.
Ash Sharma, Vice President of NEFCO and Head of the Carbon Finance Unit stated that “We are pleased to continue our strong working relationship with EPV, a responsible company which is working to develop significant renewable energy resources in Finland.” The second Tranche has exceeded the initial target capitalisation of EUR 30 million, and now stands at up to EUR 58 million. NEFCO is in discussions with a one other potential investor, and intends to close the fund thereafter.
"We have been extremely pleased with NEFCO's work in connection to our previous investments into the NEFCO Carbon Fund. In accordance with our company's strategy we have decided to procure additional emission reductions by investing EUR 20 million into the NeCF, says Managing Director Rami Vuola from EPV Energy.
The NeCF has thus far participated in 14 emission reduction projects with signed ERPAs, all involving deployment of renewable energy, namely wind power and small hydro. The projects are located in China, Vietnam; Indonesia, Laos and Mexico. The bulk of the emission reductions are now registered under the Clean Development Mechanism. Additionally, the facility has several projects at the Letter of Intent stage in India, China and south east Asia. In total, the portfolio and near stage pipeline account for ca. 35 projects.
Background
The Carbon Finance and Funds (CFF) operations of the Nordic Environment Finance Corporation (NEFCO) expanded in both volume and scope in recent years, against a backdrop of difficult economic conditions globally and political uncertainty regarding international climate policy. The NeCF is now capitalised at 155 million euro and has been active in sustainable energy investments in Asia, Latin America and Africa. NEFCO's pioneering Baltic Sea Region Testing Ground Facility (TGF), a 35-million-euro regional carbon finance facility, concluded its active procurement and entered fund administration phase in 2009.
Both funds are structured as public-private partnerships with investments from governments and private sector utilities and industrial companies and act as compliance vehicles that purchase Certified Emission Reductions (CERs) and Emission Reduction Units (ERUs) from projects that reduce greenhouse gas (GHG) emissions under the Kyoto Protocol.
NEFCO is an international financial institution owned by the five Nordic countries and mainly finances environmental-related projects and investments in Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to generate positive environmental effects for the Nordic region. Its Carbon Finance and Funds Unit operates globally, and has assets under management of EUR 212 million. www.nefco.org/cff
EPV Energy is a 60 year old Finnish energy company that possesses expertise in diverse domestic energy production. EPV focuses on emission-free and renewable energy production. The company runs comprehensive bio- wind- and nuclear programs aiming at increasing the share of renewable energy and reducing the usage of fossil fuels and cutting emissions of climate gases. The company’s turnover in 2010 was EUR 188.4 million. www.epv.fi
For more information, please contact:
Ash Sharma, Vice President, NEFCO, +358 400 811 327
Rami Vuola, Managing Director, EPV Energy, +358 40 509 0044
Mikael Sjövall, Communications Manager, NEFCO, +358 50 3535 045
