What is the World Bank’s role in the carbon market?
The Bank’s pioneering engagement in carbon finance started with the establishment of the US$180 million Prototype Carbon Fund (PCF) in 1999. This was rapidly followed by the establishment of other funds and facilities as the Kyoto Protocol was ratified. Today, the World Bank manages just over US$2 billion across 10 carbon funds and facilities. Sixteen governments and 66 private companies from various sectors have made financial contributions to these funds. In December 2007, the World Bank launched two additional facilities, the Forest Carbon Partnership Facility (FCPF) and the Carbon Partnership Facility (CPF), aimed at increasing the flow of benefits to vulnerable communities. The World Bank-administered carbon funds are supporting low-carbon investments which address the capture of methane in landfills, improved energy efficiency in steel production, bagasse co-generation, renewable energy (wind, geothermal, hydropower) and land use change, and the reduction of emissions from defore
