World Bank 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 Transformative Carbon Asset Facility (TCAF) while the bank hopes further contributions will take the eventual total to $500 mn.
Launch of new Scheme
During UN climate summit in Paris, a scheme was launched which will award countries for reducing emissions by paying a fee for each ton of carbon dioxide (CO2) reduced aimed at thrashing out a global deal to cut greenhouse gas emissions.
- The price per ton paid would be set on a case-by-case basis and 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.
The facility will contribute to helping countries implement their emission reduction plans called Intended Nationally Determined Contributions (INDCs) in U.N. jargon submitted to the U.N. ahead of the talks.
Climate summit is expected to achieve significant impact on the ground through the TCAF and ensure the sustainability of reducing emissions even beyond the Facility’s initial support.