1. Progress with Portfolio Development Prototype Carbon Fund July 2002

2. Projects Portfolio Development Project selection and Portfolio development criteria –Bank and Kyoto Protocol standards –Focus on renewables and energy efficiency –Carbon purchase: $ 3-15 m (total investment: $15-100 m) –Geo-political diversity in projects Pipeline development strategy –Responding to demand in Latin America –Developing a deal flow in Africa, Eastern Europe and, of late, in South Asia –Increasing emphasis on developing deal flow in East Asia Current Pipeline –45 projects under development with potential carbon financing of $300-350 million –As of June 2002, over $ 90 million in 21 project approved by investment committee

3. Carbon Purchases Finalized Output Target for FY 2002: 11 projects (not including Latvia) with carbon purchase agreements Status as of July 2002 14 ERPAs with completed Validation: Latvia, Brazil, Chile, Uganda, Romania, Poland (Stargard and Pisz) and Czech Republic (Thomayer and Rozmital), Costa Rica, Nicaragua. Nearing Completion: 4 more deals by end October, 2002. Bulgaria Svilosa Wood Waste to Energy, Durban MSW, Poland Kolo Geothermal, Guatemala Hydro. Pipeline exceeds $150 million of carbon purchases under preparation.

4. Status of Approved Projects (1) Latvia: $2.5 million PCF Purchase –anaerobic decomposition of about 20,000 tons of garbage a year –ERs from the existing landfill site gas recovery by June 2002 Uganda: $3.9 million PCF purchase –a 5.1 MW and 1.5 MW small hydro generating facilities in the West Nile region –Displaces >200 small and few large public diesel gensets Chile: $6 m PCF Purchase –26MW run-of-river hydro generating 175 GWh to replace coal/gas Brazil: $5 mm of PCF Purchase –Substituting coal/coke by sustainably produced charcoal in pig iron production, plus afforestation and ecosystem restoration, biodiversity and health benefits

5. Status of Approved Projects (2) Czech Republic –Small energy efficiency projects with the Czech Energy Agency and the State Environment Fund Poland heat and power applications –2 geothermal and 1 biomass waste district heating project –About $3 million of emission reduction; more projects due Costa Rica: $10 million PCF Purchase “umbrella” –Consists of 1 hydro rehab and 2 windfarms (total of 18 MW). –Sectoral baseline and MVP to be finalized and validated in November, 2001 Colombia Jepirachi Windfarm: $ 5 million PCF purchase –19.6 MW windfarm with on Wayuu land with substantial social benefits Nicaragua: $700,000 PCF purchase –1.4MW rice-husk fired power plant displacing diesel power

6. Concluded deals as of June 2002…

7. …expected by end of September 2002

8. Schedule of delivery of emission reduction from PCF projects

10. Latin America Eastern and Central Europe AfricaCentral and South Asia East Asia Wind C Rica, Colombia, Honduras, Mexico MoroccoSri Lanka Hydro Chile, CRica, Guatemala, Colombia Uganda Waste BrazilLatvia, CzechR MauritiusIndia Bagasse El Salvador, Guyana, Mexico Kenya, Swaziland IndiaThailand, Vietnam Biomass Brazil, Nicaragua Bulgaria, Poland Thailand EE CzechR, Poland, Bulgaria, Romania Uzbekistan Gas Flaring PeruKazakhstan

11. Indicative Allocations for Regions Allocation guidance as of Feb. 2001 Allocation for $180 fund CDM85 (59%)105 (58%) Latin America30 (21%)35 (19%) Africa15 (10%)20 (11%) C&S Asia20 (14%)25 (14%) East Asia20 (14%)25 (14%) East. Europe/ JI60 (41%)75 (42%) Total145180