What is ADBs involvement with the carbon market?
ADB is one of the few international institutions providing underlying finance for projects that can produce tradable emission reduction targets. ADB set up the Clean Development Mechanism (CDM) Facility in 2003 to provide technical and administrative assistance in parallel to ADB loans for projects that qualified under CDM. With lessons learned from the CDM Facility, ADB established the Carbon Market Initiative in 2006 to help its developing member countries tap into a global carbon market estimated to be at $80 billion in 2008. The extra resources would enable the developing countries to obtain new resources needed for clean energy and other greenhouse mitigation projects that qualify under the CDM.
