EBRD Reply on Multilateral Carbon Credit Fund

European Bank for Reconstruction and Development
Peter Reiniger
Business Group Director
Energy and Telecommunication

Ann Kathrin Schneider
International Rivers
Berlin Office
Reichenbergerstr.81
10999 Berlin
Germany

Dear Mrs. Schneider,

Thank you for your letter of 5 August 2005 in which you express an interest in the Multilateral Carbon Credit Fund ("MCCF") envisaged to be established and its relation to large hydropower projects. I have been asked to respond on Mr. Lemierre’s behalf.

The Founders of the MCCF will consider mandating the Fund to source carbon credits for the account of its participants from a variety of greenhouse gas emission reduction projects in which EBRD is financially involved.

The EBRD will consider the criteria and guidelines of the November 2000 report by the World Commission on Dams ("WCD") for any qualifying large hydro project. This will be done as part of the normal due diligence carried out by Bank staff.

Therefore, if the MCCF purchases carbon credits from large hydro projects financed by the EBRD they will have been considered in relation to the WCD criteria and guidelines where applicable. We would like to inform you that in the past no Greenfield large hydro projects had been presented to the Bank for financing.

Yours sincerely,

[signed]