EUROPEAN CARBON FUND™ The first carbon fund structured and managed by major financial institutions Managed by:

Carbon Market Asia Page 2 Agenda ECF presentation Recent Carbon market evolutions Our Strategy for Asia

Carbon Market Asia Page 3 ECF definition European Carbon Fund (ECF) is a financial fund, designed and operated by major EU financial institutions, dedicated to purchase Carbon Credits.

Carbon Market Asia Page 4 ECF shareholders: large financial institutions – 142.7M€

Carbon Market Asia Page 5 ECF manager: IXIS Environnment & Infrastructures IXIS Corporate & Investment Bank is Groupe Caisse d’Epargne’s corporate and investment banking arm and a leading player on capital markets. French saving Banks are France 3rd bank. IXIS CIB is present worldwide through its Paris headquarters, branches in Frankfurt, London and Tokyo, and subsidiaries in New York and Hong Kong. S&P AA

Carbon Market Asia Page 6 EU Carbon Market: VOLATILITY!

Carbon Market Asia Page Transactions (6 months): Approx.10Mt CO2 purchased 250,000 ERUs Biomass - Lituania Jan 06 1,210,000 CERs N 2 O - Brazil Feb 06 1,210,000 CERs N 2 O - Korea Feb 06 3,600,000 CERs Landfill - Argentina Mar ,000 CERs Wind - China May 06 2,500,000 CERs Swine - Brazil Jun 06 17,800,000 CERs CMM - China Nov 06 1,080,000 CERs Straw - China Oct 06

Carbon Market Asia Page 8 ECF purchasing strategy Today, China is under-represented in our portfolio ECF will invest M€ in Carbon Assets in China in the next 2 years Volumes contracted: 100,000t/y to 5,000,000t/y Portfolio approach: diversification of technology and counterparty Strong sustainable development criteria expected

Carbon Market Asia Page 9 From a carbon seller perspective:risks Risks of selling carbon –Volatility of prices –Contractual clauses (penalties, event of default…) –Lack of experience, generally first deal –Sometimes unreliable counterparties

Carbon Market Asia Page 10 From a carbon seller perspective: rewards Carbon credits can enhance the profitability of environmental-friendly projects in Asia Need to find a reliable partner… … that can harness or mitigate: –Regulatory risk –Counterparty risk –Delivery risk –Market risk

Carbon Market Asia Page 11 Conclusion ECF has closed 4 deal in China, and has a robust pipeline of projects to be concluded in the coming months ECF is a reliable partner for purchasing the carbon credits ECF has been created by leading EU financial institutions to absorb risks within a portfolio strategy ECF buys CER, whatever the market conditions

EUROPEAN CARBON FUND™ The first carbon fund structured and managed by major financial institutions Managed by: LI Chao