SlovSEFF III is co-financed by the proceeds from the sale of carbon credits from the Slovak Republic to Spain. This will help Spain to meet its emission reduction target under the Kyoto Protocol, while the Slovak Republic will reinvest these funds to further decarbonise its economy. It is the first time that donor funding for a sustainable energy financing facility is sourced from a market-based mechanism.
The transaction was structured under the Green Carbon Fund of the Multilateral Carbon Credit Fund (MCCF), established and managed jointly by the EBRD and the European Investment Bank (EIB). See the EBRD's press release.