The purpose of this fund is to demonstrate that two of the flexible mechanisms in the Kyoto Protocol can be implemented. In practice, this means that the Fund buys CO2 credits from projects that offer an acceptable market price.
The Fund invests in projects in developing countries and in “economies in transition” in order to use the flexible mechanisms in the Kyoto Protocol. The Fund’s investors consist of six nations and 17 international industrial companies in addition to some financial institutions.
