OREANDA-NEWS. December 18, 2008. The Multilateral Carbon Credit Fund (MCCF) established by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) has agreed to purchase a substantial portion of 300,000 carbon dioxide equivalent tonnes (tCO2e) of carbon credits from five sugar mills of the leading Ukrainian agribusiness holding Astarta-Kyiv, reported the press-centre of EBRD.

The agreement, which is covering the carbon credits generated during the period between 2008 and 2012, is the first purchase contract of the MCCF in Ukraine.

This transaction is a result of the project signed between Astarta and the EBRD in May 2008 and aimed at higher energy efficiency at its sugar production plants. The proposed energy efficiency measures envisaged energy savings of up to 30 per cent, which could allow Astarta to approach an average energy performance of Western European facilities, thereby increasing its efficiency, productivity and competitiveness.

The credits are to be generated via the Joint Implementation (JI) scheme under the Kyoto protocol. The JI is a market-based approach for addressing global climate change that uses international partnerships to achieve low-cost reductions in greenhouse gas emissions. A JI project generates carbon credits (Emission Reduction Units), which may then be traded internationally.

In addition to bringing new standards and practices to sugar production in Ukraine, the JI project prepares Astarta to participate in rapidly emerging carbon markets and generates much needed additional income.

Fully subscribed, with EUR190 million in commitments, the MCCF is one of the few carbon funds dedicated specifically to countries from Central Europe to Central Asia. The MCCF includes six private (CEZ, Endesa, Gas Natural, PPC, Union Fenosa and Zeroemissions) and six sovereign participants (Finland, Belgium (Flanders), Ireland, Luxembourg, Spain and Sweden).

This first MCCF deal in Ukraine was negotiated by GreenStream Network Plc., acting as Carbon Manager for MCCF in Russia, Ukraine, Belarus and Kazakhstan. GreenStream is a leading Northern European developer and manager of green investment vehicles, basing its excellence on a variety of advanced advisory and intermediary services (www.greenstream.net).

Agri-industrial holding Astarta-Kyiv is Ukraine's leading agri and sugar producer. It includes 6 sugar plants, as well as over 60 agricultural companies with more than 160,000 ha of agricultural land under lease. The production assets are located in Poltava, Vinnytsya, Kmelnytsky and Ternopil regions and the head office is located in Kyiv. Since IPO in August 2006 ASTARTA has been listed at the Warsaw Stock Exchange.