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CASE STUDY 28:                GLOBAL – CARBON PARTNERSHIP FACILITY

 Barriers               Limited demand for post 2012 carbon assets

 Instrument             Purchase of carbon credits from emission reduction programs

 Application            n/a

 Amount                 n/a


PROJECT BACKGROUND AND OBJECTIVES                             - the Carbon Fund (CF) to purchase carbon credits from
                                                              the pool of emission reduction programs.
There were uncertainties regarding the future of
international climate regime for the post 2012 period. In     INSTITUTIONAL ARRANGEMENTS
addition, the short term, compliance driven buying
                                                              The CPF is employing a governance structure that
interests in the carbon market do not support large,
                                                              features the balanced participation of buyers and
cleaner investments in energy and infrastructure that
                                                              sellers. Host country governments and donors will also
have long term emission reduction potential. The
                                                              directly participate in the governance of the CPF in an
project-by-project approach under Kyoto Protocol
                                                              advisory capacity. Donor contributors may include
incurred high transaction costs and did not generate the
                                                              governments and other public and private entities.
kind of transformation in emission-intensive sectors that
large scale programs can produce.                             OUTCOMES
Therefore, the World Bank created a Carbon Partnership        As of June 2011, the CPF Buyer Participants included the
Facility (CPF), which was designed to develop emission        Governments of Spain, Norway and Sweden, and Endesa
reductions and support their purchase over long periods       SA and E.ON Carbon Sourcing GmbH. The Seller
after 2012. The CPF utilizes scaled-up, programmatic          Participants were the Fonds D’equipement Communal
approaches, such as the Programme of Activities, to           of Morocco, Caixa Econômica Federal of Brazil, the
enable carbon finance to support partner country              Ministry of Industry and Trade of Vietnam, the Greater
initiatives in their effort to move towards low-carbon        Amman Municipality, the Provincial Electricity Authority
economies.                                                    of Thailand and the Hebei Green Agriculture Company.
                                                              Donors to the Carbon Asset Development Fund included
INSTRUMENTS USED                                              the Governments of Spain, Norway and Italy, and the
The CPF is comprised of two trust funds:                      European Commission.

- the Carbon Asset Development Fund (CADF) to prepare
and implement emission-reduction programs, and

Further reading:
World Bank Carbon Partnership Facility website – click here
World Bank, Carbon Finance at the World Bank website – click here




1 | R E F I N e www.worldbank.org/energy/refine