Washington, DC , May 27, 2009 – The Adaptation Fund completed its inaugural sales of certified emission reductions (CERs) during the third week of May, 2009. This was the first set of transactions carried out as part of the Adaptation Fund’s program to monetize CERs. The Adaptation Fund is designed to finance concrete climate change adaptation projects and programs based on the needs, views and priorities of developing country parties to the Kyoto Protocol. The World Bank serves as trustee for the Adaptation Fund, and the World Bank Treasury conducts CER sales for the Fund. The Fund’s primary funding comes from a two percent share of proceeds of all CERs issued under the Clean Development Mechanism.
The World Bank Treasury arranged the sale of 600,000 tons of CERs. The CERs were sold at an average price of €12.17 per ton. Barclays Capital was appointed as the dealer for the sales. The end buyers of the CERs were widely diversified across sectors and regions and included corporate carbon off-setters as well as entities complying with the European Union Emissions Trading Scheme (EU ETS).
Jan Cedergren, Chairman of the Adaptation Fund Board said “This is an important step in the evolution of this innovative fund.” Under the Adaptation Fund’s CER monetization program, the World Bank Treasury will conduct ongoing sales on carbon exchanges, as well as regular OTC sales. Kenneth Lay, Vice President and Treasurer of the World Bank said “We are delighted the World Bank can bring to bear its markets, trustee and trading experience to support the Adaptation Fund’s important work.” Cyrus Ardalan, Vice Chairman and Head of Public Sector at Barclays Capital said: “We are committed to continue to provide the best strategic advice and market access to the World Bank, applying our award-winning market leading banking experience in the environmental markets.”
Media contact: World Bank: Angela Furtado, Washington D.C., Tel. 202-473-1909, Afurtado@worldbank.org