The Japan Bank for International Cooperation (JBIC) has signed a memorandum of understanding (MoU) with the International Bank for Reconstruction and Development, part of the World Bank group.
This MoU aims at ensuring JBIC and IBRD join hands in further facilitating carbon finance activities related to greenhouse gas (GHG) emission reduction projects through enhanced collaboration, including information sharing on GHG emission reduction projects as well as poverty alleviation and sustainable rural development through such projects and capacity building initiatives to host country organisations of GHG emission reduction projects.
Since the launch of the Prototype Carbon Fund (PCF) in April 2000, the World Bank has been supporting GHG reduction activities in the developing world as part of the larger global effort to combat climate change. Since its investment in the PCF in May 2000, JBIC has been actively taking part in the operation of the PCF by dispatching a member to the Participants Committee, which plays an important role in the portfolio selection of PCF.
As the only government financial institution responsible for implementing Japan’s external economic policy, JBIC has been active in several areas relevant to the Kyoto Mechanism, utilising to the fullest extent its strong partnership with governmental organisations in developing countries and its overseas network created through operations such as lending and guarantee.
Recently, JBIC has strengthened partnership with the government of Chile by signing a cooperation agreement, and on December 1, JBIC joined forces with the Japanese private sector to establish the Japan GHG Reduction Fund, the first Asian fund purchasing emission reduction credits to help Japan fulfil its GHG emission commitment.