Green Climate Fund Seen Demanding UN Carbon Credits (Bloomberg)

As the Board of the Green Climate Fund meets in Bali, Indonesia from 19-21 February, Climate Mundial draws attention to the possible design of the Fund’s Private Sector Facility, which will be of interest to participants in the CDM market.

On the CDM the paper states:

“Regardless of the fate of carbon credits as compliance instruments in a post-2020 world, the Clean Development Mechanism (CDM) has created a credible and transparent framework for results-based (pay-for-performance) financing of low cost mitigation activities, in poor rural and urban communities in developing countries. Using reverse auctions to establish required floor prices, the PSF could provide price guarantees on certified emission reductions (CERs) from CDM projects that supply clean efficient cook stoves, high-efficiency lighting, solar photovoltaic supply and solar energy appliances, small-scale biomethanation projects and the like, driving private capital into marketplaces and countries where the product and services are unaffordable and private capital is rarely deployed at scale. The PSF could retire the CERs to avoid double-counting by re-use of these CERs for compliance purposes.”

This item and others related to climate finance were the subject of an interview today by Climate Mundial managing director Daniel Rossetto with Bloomberg News. Contact us for further details about the interview.

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