World Bank Launches $500M Carbon Market Scheme
Monday, November 30, 2015
The World Bank on Monday launched a $500 million market-based scheme designed to help developing countries pay for emission reductions and combat climate change.
Germany, Norway, Sweden and Switzerland have jointly pledged an initial $250 million to get the so-called Transformative Carbon Asset Facility (TCAF) up and running next year, while the bank hopes further contributions will take the eventual total to $500 mln.
The scheme, which will reward countries for reducing emissions by paying a fee for each tonne of carbon dioxide (CO2) reduced, was launched in Paris a day after senior officials from almost 200 nations met in the French capital for two-week talks aimed at thrashing out a global deal to cut greenhouse gas emissions.
The bank said the price per tonne paid would be set on a case-by-case basis and said the scheme would support energy efficiency, renewable energy and waste management projects, as well as schemes to cut emissions in cities and from the transport sector.