World Bank introduces new fund for lowering emissions
“Climate finance needs major new mechanisms that pool funding from the global community to accomplish actual reductions in greenhouse gas emissions across the developing world. SCALE offers a key non-fragmented avenue for the global community to take action on climate change,”
The World Bank has announced a new multi-partner fund that will pool funding from the global community — including donor countries, the private sector and foundations — for scalable pathways to greenhouse gas emission reduction.
The Scaling Climate Action by Lowering Emissions (SCALE) partnership will provide grants for verifiable emissions reductions and expand the funding sources for global public goods.
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“Climate finance needs major new mechanisms that pool funding from the global community to accomplish actual reductions in greenhouse gas emissions across the developing world. SCALE offers a key non-fragmented avenue for the global community to take action on climate change,” said David Malpass, President of the World Bank Group.
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“The verifiable emission reductions created by SCALE and similar mechanisms will also be an important step toward building effective carbon credit markets.”
SCALE will deploy Results-Based Climate Finance where countries receive grant payments for achieving pre-agreed, verifiable results, drawing on twenty years of World Bank Group experience in this area.
SCALE will support countries to build a track record of generating emission reductions from impactful programs and policies that they can apply toward their national emission reduction targets.
SCALE will also yield excess credits that can be offered in carbon markets with the potential to unlock additional private sector funding.
SCALE will pool public and private resources to
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(i) channel additional funding to middle and low-income countries’ emission reduction programs
(ii) help bridge the gap between the supply of and demand for high-quality emission reduction credits by supporting large-scale climate investments; and
(iii) help countries develop high integrity credits and enhance their access to international carbon markets.
Social inclusion is embedded in the design of all SCALE programs.
An associated fund within the SCALE umbrella – Enabling Access to Benefits while Lowering Emissions (EnABLE) – enhances the inclusion of marginalized communities and indigenous peoples in programs under the partnership through specially designed benefit sharing arrangements.
Source: norvanreports.com
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