Mr. Odin Knudsen
Senior Manager, World Bank Carbon Finance
The World Bank
Washington, DC

Dear Mr. Knudsen

We note with interest your decision to develop a World Bank–European Investment Bank Carbon Fund for Europe.

We are certain that you are aware of the adoption of the Linking Directive by the European Union in 2004, regulating the admission of CDM credits into the EU’s emissions trading scheme (EU ETS). The directive stipulates that credits from hydropower projects exceeding 20 MW can only enter the EU ETS if the recommendations of the World Commission on Dams final report are respected during the development of such projects.

Article 11b,6 of the Directive states: "In the case of hydro–electric power production project activities with a generating capacity exceeding 20MW, Member States shall, when approving such project activities, ensure that relevant international criteria and guidelines, including those contained in the World Commission on Dams year 2000 Final Report, will be respected during the development of such project activities."

We would be grateful to hear what measures you are intending to take to ensure that any hydropower projects (>20MW) from which the Carbon Fund for Europe will source credits respect the criteria and guidelines of the WCD.

We look forward to hearing from you.

Yours sincerely,

Ann Kathrin Schneider
International Rivers, Germany

Jaroslava Colajacomo
Campagna per la riforma della Banca Mondiale, Italy

Magda Stoczkiewicz
CEE Bankwatch Network,

Anna Roggenbuck
Polish Green Network, Poland

Joanna Bulawa
Green Federation Gaja, Poland

Regine Richter
Urgewald, Germany

Christoph Bals
Germanwatch e.V., Germany

Nick Hildyard
The Cornerhouse, UK

Lucy Baker
Bretton Woods Project, UK

Jutta Kill
FERN / SinksWatch Initiative, UK

Himanshu Upadhyaya
Hydro Monitor India, India

Himanshu Thakkar
South Asia Network on Dams, Rivers & People, India

Wiert Wiertsema
Both ENDS, The Netherlands

Catherine Pearce
Friends of the Earth International

Martin Rocholl
Friends of the Earth Europe

Juraj Zamkovský
Friends of the Earth, Slovakia

Domitille Delaplace
DECA Equipo Pueblo, Mexico

Richard Worthington
Earthlife Africa, South Africa