MCCF to purchase carbon credits from wind farms in Estonia and Lithuania
Launched in December 2006 by the EBRD and the EIB, and whose participants include the governments of Finland, Belgium (Flanders), Ireland, Luxembourg, Spain and Sweden, as well as five private sector participants, the Multilateral Carbon Credit Fund (MCCF) is one of the few carbon funds dedicated specifically to countries from central Europe to central Asia.
In its first transaction in Baltics, the MCCF has agreed to buy carbon credits from a group of wind farms managed by OÜ Nelja Energia, a renewable energy company, owned by Freenergy AS, a leading Estonian investor in renewable energy in eastern Europe.
OÜ Nelja Energia develops and manages a portfolio of 19 wind farms in Estonia, Lithuania and Latvia, with a combined planned capacity of 330 megawatts onshore and 700 MW offshore.
Under the purchase agreement, the MCCF will acquire carbon credits resulting from six OÜ Nelja Energia’s wind farms projects in Estonia and Lithuania, generated via the Joint Implementation (JI) mechanism under the Kyoto Protocol.
Currently one of the six wind farms is operational and the remaining under construction or development. Upon completion, the six wind farms will have a combined capacity of 80 megawatts.
The completion of the carbon credit purchase is subject to approvals from the Estonian and Lithuanian governments. This transaction was negotiated by GreenStream Network Plc., which acts as a carbon manager for the MCCF.
In June 2009 the EBRD provided a €19 million equity investment in Freenergy, to help support the development of OÜ Nelja Energia’s wind farm projects.
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Related categories: Carbon trading Wind power
