Baltic power utility commits EUR 10 million to NEFCO Carbon Fund

Wind farm in Viru Nigula, Estonia.

The Estonian power company Eesti Energia has committed EUR 10 million into the NEFCO Carbon Fund (NeCF) “Kyoto Plus” Tranche 2 in order to acquire emission reduction units to meet its post 2012 commitments under Phase III in EU’s emissions trading system.

Eesti Energia’s investment is earmarked to acquire high quality carbon credits after the Kyoto Protocol’s first commitment period, which means that emission reduction units will be purchased only from 2013 to 2020.

The NEFCO Carbon Fund (NeCF), which was established in 2008, has so far invested in a 100% renewable energy portfolio, primarily in wind and hydro energy projects in Asia and Latin America.

The NeCF now has access to total financial resources of EUR 165.3 million, raised from both sovereign and private sector actors. The Finnish utilities EPV Energy and Vapo and international power company GDF Suez have previously invested EUR 58 million into the fund’s Kyoto Plus tranche, which was launched August 2010. Therefore the targeted capitalisation has been exceeded and the Fund Manager has decided to close the second tranche.

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Learn more about Eesti Energia

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Watch a video from 2008 on NEFCO’s previous carbon investments in Estonia

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