BRIEF

Climate Finance and Initiatives

August 14, 2019

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Annika Ostman / World Bank


The World Bank’s Climate Change Fund Management Unit is home to climate finance initiatives that deliver innovative and scalable climate and environmental action. With more than $5 billion in capital these initiatives:

  • Create partnerships to develop new financial instruments for low-carbon, climate-resilient development,
  • Build supportive policy and regulatory environments to help lower the cost of capital and dismantle barriers to projects,
  • Catalyze private sector capital to finance and scale-up climate action.

The Unit’s results-based climate finance funds take three approaches to reducing greenhouse gas emissions:

The Forest Carbon Partnership Facility (FCPF) and the BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) focus on sustainable forest and land use. These funds guide readiness and implementation of reducing emissions from deforestation and forest degradation (REDD+), including testing purchase of REDD+ credits and incentivizing the development and implementation of sustainable land use activities.

The Transformative Carbon Asset Facility (TCAF) works with national policy makers to help shape environmental, energy, and climate change policy to reach meaningful scale and create a lasting, transformative social impact.

The Carbon Initiative for Development has a portfolio of programs that supporting similar emissions reduction projects, often small-scale at the household level. It has developed the Standardized Crediting Framework—a new approach to crediting emission reductions in the post-Kyoto era.

The Unit also includes climate change and environment programs administered through the World Bank with the Green Climate Fund and the Pilot Program for Climate Resilience.  

The World Bank’s carbon finance initiatives have supported activities in 65 countries and have made $2 billion in Emission Reduction payments since the first carbon fund (Prototype Carbon Fund) was launched in 1999.

For media inquiries please contact:

Breen Byrnes 
bbyrnes@worldbank.org

Catherine Sear 
csear@worldbank.org


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