A sthe latest press release out on September 15, states, the World Bank (in its capacity as trustee of the Netherlands European Carbon Facility) and OJSC UkrHydroEnergo today signed a landmark emission reductions purchase agreement for the purchase and sale of 1,000,000 Emission Reduction Units under the Joint Implementation mechanism of the Kyoto Protocol. The agreement was signed by Paul Bermingham, World Bank Director for Ukraine, Belarus and Moldova and Semen Potashnik, Chairman of UkrHydroEnergo.

Ukraine became a party to the Kyoto Protocol of the United Nations Framework Convention on Climate Change (UNFCCC) in February 2005 and has since undertaken significant efforts to meet the participation requirements of the Joint Implementation mechanism established by the 11th Conference of the Parties under UNFCCC.

“UkrHydroEnergo is proud to implement one of the first Joint Implementation mechanism projects in Ukraine and to pioneer the use of this new financing mechanism. The revenue from the sale of Emission Reduction Units to the World Bank Netherlands European Carbon Facility provides important added cash-flow to the project”, said Semen Potashnik, UkrHydroEnergo Chairman.

The Emission Reduction Units, each representing a reduction of one ton of climate warming carbon dioxide emissions, are generated by the Hydropower Rehabilitation Project financed by a World Bank loan and implemented by UkrHydroEnergo. The project will rehabilitate 46 hydroelectric units at nine hydropower plants. By the year 2012 it is expected that the increased generation will be approximately 470 GWh/year, providing much needed additional peaking and regulating capacity to the Ukrainian electricity system. The emission reductions are realized through the displacement of fossil fuel based electricity generation by increased generation of zero emission hydropower electricity.

“This agreement shows that the Joint Implementation mechanism of the Kyoto Protocol can make an important contribution to the many infrastructure and energy efficiency investment needs in Ukraine. I am confident that many more projects of this type will be implemented in Ukraine in the coming years, and we in the World Bank are committed to helping Ukraine exploit the opportunities they present to the full,” said Paul Bermingham, World Bank Director for Ukraine, Belarus and Moldova.

This is the first emission reduction purchase agreement signed by World Bank in Ukraine and the first Joint Implementation project by the carbon funds of the World Bank in the country.


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