French bank BNP Paribas SA (13110.FR) said in a statement Friday that it has signed a deal with Russia's state-owned Vnesheconombank to jointly finance low-carbon projects in Russia.
The two banks will identify and finance projects eligible for the United Nations Framework Convention on Climate Change Joint Implementation and Clean Development Mechanism. Under that scheme, rich countries can invest in clean energy projects in developing countries as an alternative to making emissions reductions at home.
BNP Paribas Chief Operating Officer Georges Chodron de Courcel, said, "This agreement...will drive our two leading institutions to share their knowledge and expertise on this fast-growing carbon market, and we expect that numerous projects will emerge in 2008 and further on."
Vnesheconombank is a development bank focussing on promoting the competitiveness of the Russian economy, including through funding infrastructure and environmental projects.