The World Bank and other development finance institutions have increasingly used Results-Based Climate Finance (RBCF) in developing countries to incentivize climate action and help countries achieve their Nationally Determined Contributions (NDCs) to the Paris Agreement. How will RBCF catalyze transformative climate action? We asked Erwin De Nys, Manager at the World Bank’s Climate Funds Management Unit, to explain the significance of RBCF.
A wide array of programs and markets around the world offer to deliver, buy, and sell emissions reduction credits (ERCs) —commonly known as carbon credits—with mixed reactions and results. How can buyers know that the carbon credits they purchase are real? And how does the World Bank ensure that its emission reductions programs are fully inclusive and benefit the people and communities participating in them?