Ministers from Poland and Spain, along with representatives of the EBRD and EIB were present for the signature of the agreement facilitated by the EBRD-EIB’s Multilateral Carbon Credit Fund. The transaction, which represents 25 M€ emissions trading, will allow significant greenhouse gas emissions reductions through Green Investment Scheme (GIS).

The contract signed between Poland and Spain on November 9th 2009 during the bilateral summit held in the Polish city of Sopot, will help Spain to meet Kyoto obligations and provide grant finance to projects that reduce greenhouse gas emissions in Poland.

The Green Investment Scheme (GIS) enables Poland to invest proceeds from the sale of carbon emission credits in greenhouse gas mitigation activities. This includes grants to projects including biomass, biogas electricity and heat production, and expansion of the electricity transmission network to make better use of renewable energy sources.

The greening program will be managed by Poland’s National Environmental Fund. The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) will support projects by providing additional co-financing. The fund will leverage up to 75 M€. The total investment is expected to exceed 100 M€ and significantly enhance effective climate change mitigation activities in Poland.

With significant amount of Assigned Amount Units (AAUs) surplus, equivalent to 500 million tonnes of CO2 for the period of 2008-2012, Poland will pursue more similar transactions within the framework of the Kyoto Protocol, which will generate additional greenhouse gas emissions reductions through the associated greening programme and projects. The surplus and emission reduction is a result of the complex restructuring of the Polish economy and considerable investment environment protection.

For Spain this is the fourth transaction of AAUs. It supports the country’s efforts to develop International Emissions Trading as a flexible mechanism that complements Kyoto Protocol implementation tools like the Clean Development Mechanism (CDM) and the Joint Initiative (JI).

The Multilateral Carbon Credit Fund enables state shareholders of the EBRD and EIB to meet greenhouse gas reduction targets. It covers countries from across Europe and central Asia where the EBRD operates, and is also open to non-governmental participants. Spain has invested in this fund to develop transactions under the Green Investment Scheme.