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Carbon fund investor

March 29, 2000, 10:00 CEST

Statoil has resolved to invest in the World Bank's carbon fund, and will make a USD 5 million contribution spread over 11 years.

The fund has been established to back projects designed to achieve cuts in greenhouse gas emissions which can be credited under the Kyoto protocol's rules.

"We will receive certified emission reductions which correspond to our investment in the fund," explains Statoil environmental adviser Frede Cappelen.

"These can then be used in Norway to meet the climate-policy obligations we'll face in future."

Talks on the rules for joint implementation and clean development mechanisms, as provided for in the protocol, are currently under way between the parties to the UN's framework conventionon climate change.

The target is to finalise these negotiations at the next conference of the parties in the Hague during November.

Apart from helping industrial countries to meet their Kyoto commitments, the carbon fund is intended to assist countries which are short of capital but which have substantial opportunities to curb greenhouse gas emissions.

In addition, it aims to help solve local pollution problems as well as contributing to efficient energy utilisation and economic development in these nations.

A number of countries have decided to contribute to the fund, and the Norwegian government resolved in January to become an investor. In addition, a number of European, Canadian and Japanese companies will participate.