Four European countries Germany, Norway, Sweden, and Switzerland on 30 November 2015 launched the Transformative Carbon Asset Facility (TCAF) to boost large scale climate action in developing countries in Paris. The World Bank Group worked with these countries to develop the initiative.
This 500 million US dollars initiative will help find new ways to create incentives aimed at large scale cuts in greenhouse gas emissions in developing countries to combat climate change.
Highlights of Transformative Carbon Asset Facility
• It will help developing countries implement their plans to cut emissions by working with them to create new classes of carbon assets associated with reduced greenhouse gas emission reductions.
• It will measure and pay for emission cuts in large scale programs in areas like renewable energy, transport, energy efficiency, solid waste management and low carbon cities.
• It could also make payments for emission reductions to countries that remove fossil fuel subsidies or embark on other reforms like simplifying regulations for renewable energy.
• It will work alongside a range of global initiatives and national climate plans to help both developed and developing countries achieve their mitigation goals.
• It will also pay for carbon assets with high environmental integrity and a strong likelihood to comply with future international rules and will share its learning with the international community.
• This new initiative is planned to start operations in 2016 with an initial expected commitment of more than 250 million US dollars from contributing countries.
• The facility will remain open for additional contributions until a target of 500 million US dollars is reached.
• It is expected that the new facility’s support will be provided alongside 2 billion US dollars of investment and policy-related lending by the World Bank Group and other sources.
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When: 30 November 2015