Press Release

Norway to participate in the World Bank Prototype Carbon Fund

Minister of the Environment Guro Fjellanger and Minister of International Development and Human Rights Hilde Frafjord Johnson confirmed today that Norway will participate in the World Bank Prototype Carbon Fund by allocating USD 10 million over 10 years. The Fund will invest in projects to reduce greenhouse gas emissions in developing countries and countries with transition economies. The projects will contribute to real, measurable and longterm reductions in greenhouse gas emissions and help industrial countries to fulfil their commitments under the Kyoto Protocol. The Prototype Carbon Fund is the first of its kind to be set up, and is a concrete measure for reducing global CO ₂ emissions by means of the Kyoto mechanisms.

"The Prototype Carbon Fund is an important tool for involving the developing countries in the efforts to mitigate climate change through investment in cleaner and better technology. This will promote our development cooperation goals of partnership, technology transfer and sustainable development," says International Development Minister Hilde Frafjord Johnson. Norway’s contribution to the Fund comes in addition to its regular development assistance.

The period until the Conference of the Parties takes place in November 2000 marks a decisive phase in the climate negotiations. One of the most important goals is to reach agreement on the rules for the Kyoto mechanisms.

"If we are to achieve progress in the negotiations, it is important that countries play a more active role with regard to implementing practical measures. This is the only way we can gain experience and knowledge of how the Kyoto mechanisms will function in practice," says Environment Minister Guro Fjellanger. This is one of the main reasons why the Government is now advocating Norwegian participation in the Prototype Carbon Fund. At the same time the environment minister emphasizes that the Kyoto mechanisms are to serve as a supplement to measures carried out at home and that it is important that the development of new environmentally sound technology does not stop as a result of these mechanisms.

Both countries and the private sector are investing in the Fund. Participating states commit themselves to individual shares of USD 10 million and private companies to shares of USD 5 million. So far four countries and 10 companies have invested. The Fund has an upper limit of USD 150 million.