The World Bank has launched a $500 million dollars Transformative Carbon Asset Facility (TCAF) to help developing countries pay for emission reductions and combat climate change.
It is market-based scheme specially designed to help developing countries and would establish the world’s first programmatic carbon market.
- The scheme will reward countries for reducing emissions by paying a fee for each tonne of carbon dioxide (CO2) reduced.
- The facility will help countries implement their Intended Nationally Determined Contributions (INDCs).
- Of the total 500 million dollars, Germany, Norway, Sweden and Switzerland have jointly pledged an initial 250 million dollars investment.
- The scheme would support renewable energy, energy efficiency and waste management projects as well to cut emissions in cities and from the transport sector.