The fund will place its capital in projects developed under the Joint Implementation and Clean Development Mechanisms. It will also consider procuring Kyoto compliant credits from the post-Kyoto period, 2013 onwards that are be eligible for the EU ETS.
"The NeCF will build upon the experience and networks gained through the administration of the TGF. We hope it will assist companies and Governments in the Nordic region to meet their climate change obligations, and also play a role in catalysing post 2012 investment", said NEFCO's Managing Director Magnus Rystedt.
The NeCF will invest in NEFCO's existing countries of operation, principally Russia and Ukraine, the Baltic countries and China. However, the fund may selectively consider projects in other parts of the world through the Nordic Finance Group and the Nordic network.
The fund's target capitalisation is €50 million, of which 70% has been pledged already by DONG Energy A/S and NEFCO itself. The fund may close at below or above this level, and is by invitation only. The initial round of subscriptions is invited until June 30th 2008, and the funds will be placed by the end of 2009.
The NeCF will use the same fund management team as the TGF, but the NeCF will have its own governance structure with an Investor's Committee composed of representatives from its investors.
Ash Sharma, Senior Investment Manager, Carbon Finance and Funds, will head the Facility at NEFCO stated “This is an investor-led initiative, and will operate under the Public Private Partnership model. The Fund will invest in a wide typology of projects in the NEFCO countries of operation and further afield, notably in China. We will prioritise procurement from large and medium sized projects."
Information for Editors :
NEFCO is an international finance institution owned by the five Nordic countries. NEFCO finances investments and projects in Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to generate positive environmental effects of interests to the Nordic region. Since 2004, it has been the Fund Manager of the Baltic Sea Region Testing Ground Facility (TGF).
The Baltic Sea Region Testing Ground Facility (TGF) is a regional carbon fund based on a Public Private Partnership model. Vested in the form of a trust fund administered by NEFCO, it was set up as an instrument for purchasing greenhouse gas emission reductions under the joint implementation (JI) mechanism in the Baltic Sea Region, under the auspices of the multilateral energy cooperation, BASREC. The TGF invests in energy related projects, by providing carbon finance to renewable energy, energy efficiency, fuels switching and other related projects. The target markets are Poland, the Baltic States, the Russian Federation and Ukraine.
For Further Information :
Ash Sharma, Senior Investment Manager, Carbon Finance and Funds, NEFCO, + 358 400 811 327
Lotta Aho, Legal Counsel, Carbon Finance and Funds, NEFCO, +358 50 3111 043
Mikael Sjövall, Communications Manager, NEFCO, +358 50 3535 045
