Submitted by: International Finance Corporation
Posted: Dec 06, 2006 – 05:00 AM EST
BERLIN - December 6, 2006 - The International Finance Corporation, the private sector arm of the World Bank, and the International Emissions Trading Association today agreed to join their efforts to support business-friendly and market-driven solutions that address climate change.
The two organizations will undertake together activities to increase the awareness and participation of the private sector in the greenhouse gas market and to develop the basis for carbon trading. They will also support capacity building to facilitate participation in the carbon market by the private sector in developing and transition countries. In addition, they will exchange information on developments in the carbon market.
Rachel Kyte, IFC Director of Environment and Social Development, said, "Partnering with the leading trade association in the field of greenhouse gas emissions will allow us to keep a close eye on the needs and requirements of the carbon market and will provide us with an additional platform to present our carbon finance products. We look forward to working with IETA to develop new, business-friendly instruments to address climate change."
Andrei Marcu, IETA's CEO, said, "IFC is one of the important actors on the global greenhouse market as the private sector arm of the World Bank Group. IETA represents all the leading business participants in the carbon market, and working together with IFC represents a natural partnership. This memorandum of understanding formalizes an excellent ongoing relationship."
Using its extensive experience in project finance, IFC identifies and structures emission reduction transactions and in developing new financial products that help minimize key risks in the carbon market.
IETA is involved in the design and implementation of various emissions trading schemes around the world, promoting an integrated view of the emissions trading system as a solution to climate change. It engages in discussions on regulatory issues and in the creation of systems and instruments that will ensure effective business participation.
The International Finance Corporation, the private sector arm of the World Bank Group, is the largest multilateral provider of financing for private enterprise in developing countries. IFC finances private sector investments, mobilizes capital in international financial markets, facilitates trade, helps clients improve social and environmental sustainability, and provides technical assistance and advice to businesses and governments. From its founding in 1956 through FY06, IFC has committed more than $56 billion of its own funds for private sector investments in the developing world and mobilized an additional $25 billion in syndications for 3,531 companies in 140 developing countries. With the support of funding from donors, it has also provided more than $1 billion in technical assistance and advisory services. For more information, visit www.ifc.org.
IETA is a not-for-profit business organization dedicated to ensuring that the objectives of the United Nations Framework Conference on Climate Change for climate protection are met through the establishment of effective global systems for businesses to trade in greenhouse gas emissions in an economically efficient manner, while maintaining social equity and supporting environmental integration. IETA is active in the European Union, North America, and at the UNFCCC level promoting market mechanisms to bring about solutions to environmental problems. IETA's membership is currently 139 companies, of which 51 percent represent project developers, intermediaries, financial institutions, brokers, verifiers, legal firms, and others engaged in a new economic activity as a result of the carbon market. The other 49 percent represent industrial organizations that will want to use Certified Emission Reductions to meet existing or future regulatory constraints. For more information, visit www.ieta.org..
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