What is the CPF?
|The Carbon Partnership Facility brings together industrial country buyers and developing country sellers of emission reductions, as well as developing and donor country governments, into a partnership with shared decision making and opportunities for sharing experience and knowledge regarding carbon finance. It facilitates the implementation of low-carbon programs across an array of sectors and technologies - energy generation and distribution, energy efficiency, and waste management - in situations where governments need policy measures or investments.|
In the current Kyoto period, the CDM has operated largely on a project-by-project basis. The CPF utilizes scaled-up, programmatic approaches, such as the Programme of Activities, to enable carbon finance to support partner country initiatives in their effort to move towards low-carbon economies. It also targets areas that have not been reached effectively by CDM in the past, such as energy efficiency, and will pilot city-wide carbon finance programs.
A Balanced Partnership:
For the first time in one of the World Bank's carbon funds, the Carbon Partnership Facility (CPF) is employing a governance structure that features the balanced participation of buyers and sellers. Host country governments and donors will also directly participate in the governance of the CPF in an advisory capacity. Donor contributors may include governments and other public and private entities. Closer collaboration and partnership between all parties in the carbon market provides a unique operational level opportunity for the parties involved to exchange views and discuss issues of mutual interest, with the goal of making carbon finance an even more effective tool in climate change mitigation and development.
The CPF is comprised of two trust funds: (i) the Carbon Asset Development Fund (CADF) to prepare and implement emission-reduction programs, and (ii) the Carbon Fund (CF) to purchase carbon credits from the pool of emission reduction programs.
As of December 2013, the CPF Buyer Participants included the Governments of Spain, Norway and Sweden. The Seller Participants were the Fonds D’equipement Communal of Morocco, Caixa Econômica Federal of Brazil, the Ministry of Industry and Trade of Vietnam, the Provincial Electricity Authority of Thailand, the Hebei Green Agriculture Company, the Rural Energy Agency of Tanzania, the Ministry of Finance of the Arab Republic of Egypt and the Land Bank of the Philippines. Donors to the Carbon Asset Development Fund included the Governments of Spain, Norway and Italy, and the European Commission.
For further information, please contact Mr. Richard Zechter.