Investment Advisory Facility - Carbon Finance
One of the more innovative uses of the Facility has been to link
conventional financing organisations to evolving markets for carbon
trading. The Jamaican wind project is a good example of linking
sustainable energy financiers to carbon-traders (see box previous
page). As a result of this work, and the evolving markets for carbon
abatement, the company involved in the Jamaican project, RES, is
now looking at projects in other developing countries that may also
offer a carbon value.
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The IAF is supporting the creation of new investment funds,
including a carbon fund under development by a major European
banking group and an ESCO fund under development by IDB and
FondElec. For each fund, UNEP is providing assistance to help
create and evaluate a stream of potential sustainable energy
investments.
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With another client, the IAF is supporting the preparation of
a carbon investment fund. UNEP promotes such activities not only
as a means of shifting finance flows towards environmentally-sound,
sustainable energy choices, but also to send the signal that many
RET and EE technologies are ready for deployment, as well as the
carbon values (e.g., $/ton) needed to make some newer technologies
commercially competitive.
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