Nordic carbon fund buys 4.6 million U.N. CO2 credits

LONDON Tue Aug 16, 2011 9:56am EDT

LONDON (Reuters) - The Nordic Environment Finance Corporation Carbon Fund (NeCF) has closed deals to buy 4.6 million U.N.-backed carbon credits from 10 clean energy projects in India and southeast Asia, it said on Tuesday.

"We are closing a large number of projects with a view to meeting the 12/12 registration deadline for EU ETS (emissions trading scheme) eligibility from projects not located in the least developed countries," said Ash Sharma, NEFCO vice president and head of carbon finance and funds unit, in a statement.

Two projects are in western India, several are in southeast Asia, including four small hydro power plants, a biomass project and a waste heat recovery power generation plant in Vietnam, and there is an energy efficiency project in the Ukraine.

Under the U.N.'s Clean Development Mechanism (CDM), companies can invest in emissions cuts in emerging nations and receive credits called certified emissions reductions (CERs).

NeCF said it also intends to buy CERs from eight clean energy projects in Vietnam, Thailand and China.

"These transactions will be concluded within the coming months to allow the projects to enter the CDM validation pipeline by the fourth quarter," the fund said.

NeCF buys emissions reduction credits on behalf of its investors enabling them to meet their commitment under the EU ETS and/or the Kyoto Protocol.

The fund has invested in 22 renewable energy and energy efficiency projects and has access to 165 million euros, raised from both the public and private sectors.

(Reporting by Nina Chestney; editing by Jason Neely)