World Bank starts fund to curb carbon emissions

The World Bank has launched the Community Development Carbon Fund in collaboration with the International Emissions Trading Association and also signed the first agreement with a developing country on carbon finance with the Development Bank of Southern Africa. One of the challenges facing the world is how to equitably and cost-effectively reduce greenhouse gas emissions to avert the worst effects of climate change.

Michael Rudino, World Bank manager for new funds development, for carbon and environment finance, said at the world summit many cities, states, local governments, and responsible firms had already taken action to cut carbon emissions. “At the international level, the Kyoto Protocol, adopted under the United Nations framework convention on climate, commits industrialised countries to reduce their carbon emissions,” he said.
Rudino said the new fund, to be capitalised at $ 100 mm, was aimed at linking small-scale projects in developing nations seeking carbon finance with firms, governments and foundations. “It would also aid nongovernmental organisations seeking to improve the livelihoods of local communities and obtain verified emission reductions,” he said.

An example of a project to be funded is Durban's large landfill site which produces substantial amounts of methane gas. World Bank group president James Wolfensohn said continued global warming was in no one's interest. “But the simple facts are that developing countries will suffer the most damage, and their poor will be at an even greater disadvantage,” he said.
He said the Bank's role in climate change was to provide every chance to developing countries to benefit from the huge investment Organisation for Economic Co-operation and Development countries and companies had to make in reducing climate change.