Sweden’s participation in CDM and JI funds
The Swedish Energy Agency's acquisition of emissions reductions from CDM and JI projects also takes place through active participation in selected multilateral CDM and JI funds.
The Swedish Energy Agency participates in the following CDM and JI funds:
Asia Pacific Carbon Fund: CDM projects in Asia mainly in the renewable energy and energy efficiency sectors
The Asia Pacific Carbon Fund (APCF) is a newly-established trust fund administered by the Asian Development Bank (ADB). The fund's primary objective is to engage in CDM projects in renewable energy, energy efficiency and methane recovery projects in developing countries in Asia. A proportion of the fund's capital may be used to purchase carbon credits generated in the period beyond the Kyoto Protocol's first commitment period, which ends in December 2012. The participants of the fund represent seven European governments that have committed a total of US$ 152 million. The Agency has contributed with US$ 15 million to the fund. Examples of projects expected to be supported through APCF are a waste water biogas project in Fiji and a biomass power plant and energy efficiency projects in the Philippines.
Future Carbon Fund: CDM-projects in Asia for the period after 2012
The second ADB-administered fund "Future Carbon Fund" (FCF), aims at procuring carbon credits after 2012. This fund, like APCF, contributes to financing renewable energy, energy efficiency and other greenhouse gas (GHG) mitigation projects in Asian developing countries. The FCF was launched during the United Nations Climate Change Conference in Poznan in December 2008. The current investors are Sweden, Finland, Belgium and Korea. Other countries as well as private companies are likely to join as participants in the future.
The Swedish commitment to this fund demonstrates Sweden's commitment to a continuation of the carbon market in the period post 2012. This commitment also sends a positive message to the market by generating increased demand for carbon credits post-2012. Sweden, through the Swedish Energy Agency, has contributed $20 million to the fund and is a member of the Fund's Board. The FCF aims at securing capital amounting to US $100-150 million.
Testing Ground Facility: Small- and medium-sized JI projects in Eastern Europe
The Testing Ground Facility (TGF) is a regional JI fund in the Baltic Sea Region. TGF supports JI-projects in Eastern Europe, where Russia and Ukraine are the two host countries with biggest potential. Investors in TGF are the five Nordic governments, the German government and major industrial actors and energy companies in the region. The Swedish Energy Agency is responsible for the Swedish participation in TGF. The fund's total capital amounts to € 35 million, of which Sweden's contribution is € 3.5 million. . Examples of projects supported by TGF are: a wind power project in Lithuania, a biogas project in Estonia and a biomass-to-energy project in Russia.
Multilateral Carbon Credit Fund: JI and CDM projects in Eastern Europe and Central Asia
The Multilateral Carbon Credit Fund (MCCF) is administered by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The MCCF invests in JI and CDM projects in Eastern Europe and Central Asia. Both private companies and governments have invested in the fund. The total capital of the fund amounts to € 165 million and the contribution from Sweden amounts to € 2 million. Renewable energy and energy efficiency projects in Ukraine and Russia are the main project types supported by the MCCF.
Prototype Carbon Fund: CDM and JI projects in the World Bank's first carbon fund
The Swedish government also participates in the World Bank's Prototype Carbon Fund (PCF). The PCF was one of the first CDM and JI funds on the market and became operational already in 2000. The fund has played an important role in the development of a global carbon market. The total capital of the fund amounts to US$180 million and the contribution from Sweden amounts to US$10 million. Examples of projects supported by PCF are: wind power project in the Philippines, Colombia and China and small scale hydro power project in Costa Rica, Guatemala and Uganda.
UCF T2, Umbrella Carbon Facility tranche 2 CDM projects for post-2012
Umbrella Carbon Facility, Tranche 2 (UCF T2) is a CDM fund administrated by the World Bank with the aim to purchase emission reduction units from the period after 2012. The fund reached its full capitalisation of EUR 105 million in February 2011 and is now operational. Sweden has contributed with EUR 10 million to UCF T2. The fund consists of 17 projects mostly within energy efficiency and the renewable energy sector. Four of the projects are in the least developed countries Senegal, Mali, Bangladesh and Nepal. Six of the projects will be carried out as CDM Programme of Activities (PoA). PoA comprehends several smaller CDM projects in different geographic areas. An example of PoA in UCF T2 is replacement of incandescent lamps to more efficient compact fluorescent lamps in households.
CPF:Programmatic and sector-based CDM for the post-2012 world
The Carbon Partnership Facility (CPF) is a World Bank administrated fund that will procure carbon credits post-2012. The CPF aims to develop programmatic-based approaches in developing countries to reduce greenhouse gas emissions. The intention is to scale up emission reductions in an effective way; inter alia through the development of innovative and large scale mitigation programmes. Programmatic-based approaches will be used in areas such as the power sector, energy efficiency, transport, waste management systems and urban development. To date, a programme in Brazil is approved. Other host countries that have indicated an interest in participating in the CPF are: Morocco, Jordan, Egypt, Tanzania, Vietnam, Thailand and China. CPF will have balanced participation of buyers and sellers and the design and approach of the fund differs from that of other carbon funds; it brings different partners together to create, sell, and purchase, emission reductions. Sweden, through the Swedish Energy Agency, became fund participants in June 2011 and has contributed EUR 20 million to the fund. Other financiers in CPF, in addition to Sweden, are Norway, Spain, Endesa and E.ON. In June 2011 the CPF had a fund capital of EUR 132.5 million.