Finance from a London-based bank has helped Georgia’s largest hydro power plant sell carbon credits.

The European Bank for Reconstruction and Development (EBRD) provided a total amount of $70 million since 1998 to upgrade all five units and increase the Enguri Hydro power plant’s operational capacity.

The project is now registered under the Kyoto Protocols’ Clean Development Mechanism and is estimated to generate more than 5.8 million carbon credits over ten years. The credits could be sold in global carbon markets to businesses and Governments that are close to exceeding their greenhouse gas emissions.

Believed to be the largest energy source in Georgia, the hydro power plant is located on the Enguri River and provides around 40% of Georgia’s domestic power supply.

Friso de Jong, Carbon Manager at the EBRD said: “Since 1998 the EBRD has been consistently supporting upgrades at Enguri hydro power plant to increase its energy efficiency. Most recently the Bank has helped build capacity to enable the plant monetise the environmental benefits of cutting greenhouse gas emissions.

“We are now very proud that the latest project to refurbish the plant has been registered under the Kyoto Protocol’s Clean Development Mechanism and will allow the plant to monetise its CO2 emission reduction potential. It is another prominent achievement for Georgia and the wider region, that so far has struggled to benefit from carbon trading.”