GDF Suez’s investment, through subsidiary Electrabel S.A./ N.V., is earmarked to acquire high quality carbon credits after the Kyoto Protocol's first commitment period, which means that emission reduction units will be purchased only from 2013 to 2020.
”The NEFCO Carbon Fund is delighted to welcome GDF Suez as a fund participant. As a truly global player and active participant in the international carbon markets, GDF Suez brings a wealth of carbon market experience to the NeCF”, said NEFCO’s Vice President and Head of the Carbon Finance and Funds Unit, Ash Sharma.
For GDF Suez, this investment is important to help the Group meet its CO2 reduction obligations in Europe. To comply with the European objectives, GDF Suez continues to invest in increasing the efficiency of its generation park as well as procuring carbon units. Therefore the Group decided to invest in the NEFCO Carbon Fund.
NEFCO Carbon Fund (NeCF) procures emission reduction units on behalf of its investors enabling them to meet their commitments under the EU Emission Trading Scheme and the Kyoto Protocol. The NEFCO Carbon Fund (NeCF), which was established in 2008, has invested in a 100% renewable energy portfolio, primarily in wind and hydro energy projects in Asia and Latin America. There are currently 14 projects contracted at the ERPA stage.
The NeCF now has access to total financial resources of EUR 135.3 million, raised from both sovereign and private sector actors. The Finnish utilities EPV Energy and Vapo have previously invested EUR 18 million into the fund’s Kyoto Plus tranche, which was launched August 2010. Therefore the targeted capitalisation of the second tranche has been exceeded. Apart from GDF Suez, other major energy companies and several governments have invested in the NEFCO Carbon Fund.
This is the third time that NEFCO has gone to the compliance market to raise capital for carbon procurement. On each occasion, it has exceeded targeted volumes. In 2005/6, it raised EUR 20 million (against a target of EUR 15 million) for the Tranche 2 of the Baltic Sea Region Testing Ground Facility. In 2008, it launched the global NEFCO Carbon Fund (NeCF), raising EUR 100 million against a target of EUR 50 million. The current Kyoto Plus tranche of the NeCF launched in autumn 2010 has thus far raised EUR 38 million against targeted EUR 30 million.
For more information, please contact:
Ash Sharma, Vice President, NEFCO, +358 50 344 5151
Mikael Sjövall, Communications Manager, NEFCO, +358 50 3535 045
NEFCO is an international financial institution owned by the five Nordic countries. NEFCO 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 including carbon finance facilities, climate guarantees and technical assistance products exceeding EUR 212 million. www.nefco.org/cff
GDF Suez provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: liquefied natural gas, energy efficiency services, independent power production and environmental services.
GDF Suez employs 214,000 people worldwide in 2010 and achieved revenues of EUR 79.9 billion in 2009. The Group is listed on the Brussels, Luxembourg and Paris stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Stoxx 50, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe, ASPI Eurozone and ECPI Ethical Index EMU.
