Submitted by: International Finance Corporation
Posted: Feb 11, 2008 – 05:12 PM EST
WASHINGTON, D.C. - February 11, 2008—IFC, a member of the World Bank Group, and ING Bank N.V. of the Netherlands have signed an agreement to help reduce methane emissions in Ukraine. The agreement takes place under the Netherlands European Carbon Facility, a joint facility of the World Bank Group and the Dutch government. IFC will purchase up to 550,000 emission reduction units from ING, using the Dutch government’s funds. The reductions will come from several projects in Ukraine. The Dutch government will then use the purchased emission reductions to comply with its commitment under the Joint Implementation Mechanism of the Kyoto Protocol.
The first project under the agreement is the Krasnodonugol coal mine, which has installed a system that uses clean-burning methane, rather than coal, in boilers, providing heat and hot water at the mine while reducing emissions. The project captures methane, which has a global warming potential of about 21 times that of carbon dioxide if released. Ukrainian law does not require such abatement of methane at coal mines. ING Wholesale Banking is working with several companies to help them monetize emission reductions from project activities.
Peter van Eijndhoven, Vice President of Emissions Products, ING Wholesale Banking, said, "IFC and ING have a long-standing business relationship, and we are happy to expand this by working together on emission reduction projects. The success of this transaction can be attributed to the professionalism and knowledge of carbon market specialists at both organizations, as well as to ING Wholesale Banking's local presence and long-established client relationships in Ukraine. We expect that our expertise and local presence will lead to further emissions reduction opportunities in the region, and we will be happy to partner with IFC on these."
Vikram Widge, head of IFC's Carbon Finance Unit, said, "Through this deal, we are supporting the reduction of dangerous coal mine methane emissions in Ukraine and creating a business case for transforming fugitive emissions into heat or power. We hope this will have a demonstration effect and that the business model will be replicated throughout the country."
IFC manages two carbon purchase facilities on behalf of the Dutch government. IFC also offers several financial products for the growing carbon market, including a carbon delivery guarantee for projects that generate emission reductions and loans against emission reduction purchase agreements. For more information on IFC's carbon finance offerings, visit www.ifc.org/carbonfinance.
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.
About ING Bank, N.V.
ING is a global financial institution of Dutch origin. It offers banking, insurance, and asset management to over 75 million private, corporate, and institutional clients in more than 50 countries. With a diverse workforce of about 120,000 people, ING comprises a broad spectrum of prominent companies that increasingly serve their clients under the ING brand. ING Wholesale Banking is one of six businesses of ING Group and is responsible for providing financial products and services to corporate and institutional clients across Europe, the Americas, and Asia. Emissions Products is part of ING Wholesale Banking. Through offices in Amsterdam and Shanghai, the team offers a range of services related to the Kyoto Protocol, and the creation and sale of carbon credits. ING entered the Ukrainian banking market in 1994, with a wholesale banking business line, offering a full range of services to corporate clients. The bank is expanding its retail banking operations in Ukraine. For more information, visit www.ing.com
For more information, please contact:
For more from this organization:International Finance Corporation