Finland joins Asian Development Bank's future carbon fund

Press release 462/2008
10 December, 2008

Finland is joining the Asian Development Bank's (ADB) new Future Carbon Fund, which was launched at the Climate Conference in Poznan on Wednesday, 10 December. Finland's contribution to the fund will be 20 milion US dollars. As a whole the fund is expected to attract investments up to 200 million US dollars from both public and private sectors.

Future Carbon Fund purchases emission reductions that are generated after the end of the year 2012. The fund supports projects that rely on renewable energy or energy efficiency and other projects that assist in reducing the amount of greenhouse gases in the atmosphere. Geographically the activities of the fund are concentrated on the area of operation of the Asian Development Bank. The fund promotes development goals within its activities.

The Kyoto Protocol sets binding targets for the developed countries that have ratified it. The first Kyoto commitment period lasts until the end of the year 2012 and the negotiations concerning the new global climate change regime are ongoing. These negotiations are expected to culminate in the Climate Conference that is held in Copenhagen in 2009.

The flexible market mechanisms defined by the Kyoto Protocol have created a looming international market for emission reductions. The continuity of the carbon market depends on the outcome of the future climate agreement. Elevating trust in the forthcoming global climate change regime as well as promoting the continuity of the carbon market are also important objectives of the Future Carbon Fund.

Further information: Karoliina Anttonen, Chief Administrator, Unit for International Environmental Policy, tel. +358 400 876 512; Tiina Jortikka-Laitinen, Director, Unit for International Environmental Policy, tel. +358 40 740 8945