The NEFCO Carbon Fund (NeCF) is a global carbon fund based on a Public Private Partnership model, launched in April 2008. Vested in the form of a trust fund administered by the Nordic Environment Finance Corporation it is an instrument for purchasing greenhouse gas emission reductions under the joint implementation (JI) and clean development mechanism (CDM).

The NeCF invests in a wide tyopology of projects by providing carbon finance to renewable energy, energy efficiency, fuel switching and other investments. The principal target markets are the Russian Federation, Ukraine, People's Republic of China, South East Asia and India although other regions will also be considered.

The NeCF will also procure credits from CDM projects in the post-Kyoto period up to the maximum of the first crediting period of the project (7 or 10 years).

Investors

The new fund is directed towards private investors (corporate entities with compliance obligations under the EU Emissions Trading Scheme, or EU ETS) and sovereign investors including those who are currently investors in the TGF.
The NeCF has a target capitalisation of €50 million, but may close at below or above this amount. As of September 2008, €42 million had been raised, from DONG Energy (Dk), Danish Energy Agency, Industrialisation Fund for Developing Countries (IFU) and NEFCO itself.

Projects

The NeCF will invest in projects owned and operated by private enterprises, public utility companies, public-private partnerships and municipal, regional or governmental authorities.
The NeCF will invest in a wide range of GHG mitigation projects including but not limited to renewable energy projects (e.g. biomass, small-scale hydropower, wind, geothermal), energy efficiency and fuel switching, methane capture from landfill gas and coal mine/beds, N2O and reduction of industrial GHG emissions.

Projects should be in line with the requirements of the Kyoto Protocol, in particular the fulfilment of the requirements of the JI Supervisory Committee and CDM Executive Board of the UNFCCC Secretariat, and the second trading period of the EU ETS (and subsequent periods).

The NeCF acts as buyer of ERUs/CERs/AAUs on the basis of emission reductions purchase agreements concluded with project owners. Priority will be given to large projects.
NeCF provides coverage of carbon related project preparation costs.

Contacts:

Ash Sharma
Senior Investment Manager, Carbon Finance and Funds

NEFCO Carbon Fund
c/o Nordic Environment Finance Corporation (NEFCO)
P.O. Box 249
FI-00171 Helsinki
FINLAND
Direct +358 40 08 11 327
Fax +358 96 30 976