The European Investment Bank (EIB) and World Bank have launched the Carbon Fund for Europe (CFE) as a trust fund. The fund will purchase greenhouse gas emission reductions from climate-friendly investment projects through the Kyoto Protocol’s Clean Development and Joint Implementation mechanisms. Projects are prepared, appraised and financed by the World Bank or the EIB either directly or through implementing entities. Implementing entities will include private sector companies selected by public procurement procedures. European banks and financial institutions will also be invited to collaborate with the fund. Credible and financially sound projects should be able to offer a minimum annual emission reductions volume of 100,000 tonnes of carbon dioxide equivalent. The fund may purchase carbon credits generated by a project beyond 2012 – up to a limit of 40 per cent.