Fund to benefit carbon investors in Kenya

16/05/2011 - Kenya property & investment news Posted by Bob Brunskill
Fund to benefit carbon investors in Kenya

People investing in carbon trading projects in Kenya are set to benefit from the launch of a new fund.Established by the International Finance Corporation (IFC), the fund will cover a financing gap arising from the European Union's decision to stop buying carbon credits from developing countries as of next year, Business Daily Africa reported.The IFC will set up a total of Sh18.3 billion to benefit Kenyan companies that are planning to start carbon trading projects.Approximately 80 per cent of these environmental conservation projects started by Kenyan companies are currently sponsored by the EU, but this will end from 2012.Joelle Chassard, manager of the Carbon Finance Unit at the World Bank, commented: "During a period of regulatory uncertainty, [this fund] is helping to maintain demand for post-2012 carbon credits."Meanwhile, the head of the fund, Lasse Ringius, remarked that the financing will "facilitate implementation of carbon credits-eligible private sector projects".