IFC’s Post-2012 Carbon Facility Shows Private Sector Interest in Carbon Markets
September 2011: The International Finance Corporation (IFC), part of the World Bank Group, reached full subscription of over US$200 million for its Post-2012 Carbon Facility, helping secure what is expected to be at least US$2 billion in low carbon growth across the developing world despite uncertain carbon market conditions.
Further to IFC's commitment to invest close to US$22 million into a carbon facility, an additional US$195 million was leveraged from market leaders EnBW Trading, ESB International, GDF Suez, JP Morgan, Mabanaft, Mercuria Energy Group, PetroChina, and Shell Trading. Under the Facility, IFC will purchase carbon credits generated after 2012 and forward purchase Certified Emission Reductions (CERs), produced from 2013 to 2020 from projects directly financed by IFC or by local banks financed by IFC. For example, IFC will provide US$15 million in equity financing to Shalivahana Green Energy Ltd, to increase about 200 MW of biomass power projects in Chhattisgarh, Jharkhand, MP, Orissa, and Tamil Nadu, in India. As part of the deal, IFC will purchase up to 1.5 million CERs from energy projects developed by Shalivahana from 2013 to 2020. IFC expects the main focus of investors will be in the renewable energy and energy efficiency sectors. [IFC Press Release] [IISD RS Sources]