The Carbon Finance Unit serves as IFC's in-house resource for all carbon finance-related issues, providing services directly to buyers and sellers. The Unit leads in the development of new products, and serves as an advisor on a variety of products and services to support private sector participation in the evolving carbon market.

IFC is well-positioned to assist project sponsors with participation in the rapidly growing market for 'carbon credits'. Through the Carbon Finance Program, IFC contributes to the development of an important new market for environmental services.

The Carbon Finance Unit brings IFC's extensive experience in project finance to manage long term and credit risks in emerging markets. Carbon Finance products and services include:

• Finance Products and Services
  • Carbon Delivery Guarantee
  • Monetization of future cashflows from sales of carbon credits
  • Debt and equity for carbon rich products and businesses
  • Work with Financial Intermediaries and municipalities to help aggregate carbon credits from their various investment operations

Recent Highlights

IFC Signs Certified Emission Reduction Purchase Agreements in South Africa and India
In late 2007, the Carbon Finance Unit at the International Finance Corporation, signed two Certified Emissions Reduction Purchase Agreements (CERPA) to purchase greenhouse gas emission reductions. Under the first agreement, IFC will purchase CERs from a nitrous oxide (N2O) destruction facility at the clients nitric acid plant in Sasolburg, South Africa. Under the second agreement, CERs generated from a waste heat recovery power plant which reduces dependence on fossil fuel for power generation in India. Read more in the Carbon Finance Press Releases.