What specific role is the Bank playing in the development of a market for carbon trade?
The role of the Bank through its Carbon Finance Unit has been one of market facilitator and catalyst. The Bank has made significant efforts in the development of the carbon market, first by launching the Prototype Carbon Fund (PCF) to demonstrate how to cost-effectively achieve GHG reductions while contributing to sustainable development. More recently, the Bank launched a series of carbon funds to expand learning-by-doing to other countries and economic sectors, and to address market failures, such as through the Community Development Carbon Fund (CDCF) and Bio Carbon Fund (BioCF), which are designed to enable smaller and rural poor communities to benefit from carbon finance. The Bank has developed a balanced approach between stimulating demand as a buyer in the early stages of the market and its support to sellers to tap new and additional sources of funds from carbon trade to support their sustainable development and to alleviate poverty. This will consist of meeting the demand for
