The Finnish utility company Vapo Oy invests EUR 10 million in NEFCO Carbon Fund

The NeCF has invested in a 100% renewable energy portfolio. Photo: Patrik Rastenberger

The Finnish utility company Vapo Oy has invested 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 within the EU’s emissions trading system.

Vapo is the leading supplier of local and renewable fuels, bioelectricity and bioheat, and environmental business solutions in the Baltic Sea region.

The Finnish state owns 50.1% of Vapo’s shares. Vapo Group’s turnover in 2009 was EUR 573.7 million. Vapo’s investment into the NEFCO Carbon Fund is earmarked to acquire carbon credits after the Kyoto Protocol’s first commitment period, which means that emission reduction units will be purchased only from 2013.

”With this investment we want to ensure that Vapo meets the emissions targets set for the company for the next commitment period. We believe that this is a cost efficient way of reducing the emissions through a well-known and trustworthy financial institution”, said Group Treasurer Erik Nieminen from Vapo.

”We are delighted that the Tranche 2 capital raising for the NEFCO Carbon Fund is progressing. This is a clear indication of trust in the NEFCO Carbon Fund’s ability to source high quality credits to meet the needs of obligated entities under Phase III of the EU’s emissions trading system”, said NEFCO’s Vice President Ash Sharma.

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