World Bank Carbon Finance Unit

Donor: 
Any donor
International Finance Institutions
Geographical focus: 
Global
Africa
Americas
East Asia and the Pacific
Europe
Middle-East
South Asia
Thematic focus: 
Tourism in general
Energy in Tourism
Sustainability of natural resources in Tourism
Intro text: 
The World Bank has continuously sought to promote sustainable development through its work in promoting projects that mitigate climate change.

Official website

http://www.climatefinanceoptions.org/cfo/node/38

Geographic focus

IBRD, IDA member countries worldwide

Who can apply?

Eligibility:

  • IBRD/IDA member countries;

  • CDM or JI-eligible project activities (also voluntary window mainly for forestry and agriculture-based projects) and AAU transactions (through GIS);

  • Project with at least 200,000 MtCO2e emission reductions by 2012;

  • Host country approval

Objectives and activities

Objective:The WB has been able to leverage new resources in this area through the use of carbon finance, in particular by strengthening the capacity of developing countries to benefit from carbon asset transactions and playing a catalytic role in building, sustaining and expanding the carbon market.

Activities:  The emission reductions are purchased through one of our carbon funds or facilities on behalf of the contributor, and within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI).

Type and level of funding

About USD 2.5 billion under management through 10 carbon funds and facilities. The most important ones are:

  • Prototype Carbon Fund: a total capital of $180 million.
  • BioCarbon Fund: a total capital of $80 million.
  • Community Development Carbon Fund: $118 million.
  • Italian Carbon Fund: $155.6 million.
  • Danish Carbon Fund stands at €90 million.
  • Spanish Carbon Fund:  $278.6 million.

Financing mechanisms: Carbon Finance, with possible upfront payment (up to 25% of transaction amount) and some possible post-2012 purchase. Carbon asset development costs can also be covered in deserving cases.

Project proponents must submit a Project Idea Note (PIN), a short form that provides the basic information about the project, to demonstrate, for example, the viability of technology, sound financing, credible baseline and adequate volume of emission reductions. Furthermore, a financial analysis model is mandatory when submitting a PIN. The PIN is used as an initial screening instrument and provides the proponents with feedback. At this stage it is purely the exchange of an idea and neither party has legal obligations to proceed further. See Submit a Project Idea for templates and additional guidance.