Credit Suisse, AIL Structured Finance and South Pole Carbon Asset Management have entered into an agreement to launch a carbon investment vehicle, which intends to provide equity and mezzanine capital to high quality emission reduction projects.

The underlying assets will be energy efficiency and renewable energy infrastructure projects, which will generate carbon credits under the Kyoto Protocol. The majority of the fund will be invested in projects that are certified by Gold Standard, a Swiss-based non-profit foundation that labels renewable energy and energy efficiency projects with sustainable development benefits.

The firms say that high-quality energy infrastructure projects can offer particularly attractive investment opportunities as Gold Standard carbon credits are fetching premium prices while at the same time fostering sustainable projects in developing countries.

“We are very excited about this partnership with AIL and South Pole which will allow us to offer our clients a unique and attractive investment opportunity in the fast growing carbon market, generating enhanced returns from green infrastructure projects,” said Yves Robert-Charrue, head of single manager alternative investment business at Credit Suisse, in a release.

The new investment product is expected to be launched in the first quarter of 2008.