The carbon Fund amounts to over USD 900 million pledged and deposited:
The Carbon Fund is set up to pilot incentive payments for REDD+ efforts in developing countries. FCPF participant countries that have made significant progress in their REDD+ readiness endeavors may be selected to participate in the Carbon Fund, which became fully operational in May 2011.
The FCPF is supported by a diverse group of entities, including governments, non-governmental organisations (NGOs), and private companies. Private companies are required to make a minimum financial contribution of USD 5 million to participate.
Carbon Fund Contributors:
European Commission, Australia, Canada, France, Germany, Norway, Switzerland, UK, USA, BP Technology Ventures Inc., The Nature Conservancy.
Carbon Fund payments will be complementary to financing from other sources, e.g., the government’s own budget, World Bank financing, loans or grants from the Forest Investment Program, the Global Environment Facility, bilateral donors, or the private sector.
The Monitoring and Reporting Procedures of the FCPF is split in several documents.
- The FCPF Methodological Framework
- The Process Guide
- The Buffer Guideline
- The validation and verification Guideline
The World Bank provides secretariat services through a Facility Management Team. The team has three core functions:
- Administering the Funds: The World Bank, as the trustee of the FCPF’s Readiness Fund and Carbon Fund, manages day-to-day operations, including fund management and administration
- Supporting Governance Bodies: The FMT prepares proposals for approval by the FCPF’s governing bodies, such as the Participants Committee and the Carbon Fund governance, facilitating decision-making processes
- Providing Technical and Methodological Support: The FMT offers technical assistance to REDD+ countries, including overseeing validation and verification processes to ensure compliance with World Bank Group policies and Carbon Fund requirements.
Additionally, the FMT manages the Carbon Asset Trading System (CATS), the FCPF’s transaction registry, and ensures that all operations comply with applicable policies in areas such as safeguards, procurement, and financial management.
The FCPF is open to REDD+ Country Participants. REDD+ Country Participants are defined as developing countries located in a subtropical or tropical area that has signed a Participation Agreement to participate in the Readiness Fund. Forty-seven developing countries have been selected to join the FCPF (18 in Africa, 18 in Latin America, and 11 in the Asia-Pacific region).
The Carbon Fund Process consists of the following steps:
The creation of emission reductions in the FCPF Carbon Fund consists of the steps below. Note that the steps may not necessarily be sequential.
22. The availability of FCPF Carbon Fund documents as mentioned in all the steps below is determined in accordance with the World Bank’s Access to Information Policy.
23. The Carbon Fund Process consists of the following steps:
a) ER Program pre-approval: Preparation of the ER Program Idea Note (ER-PIN) and presentation to the FCPF Carbon Fund for its acceptance;
b) ER Program approval: Preparation of the ER Program Document (ER-PD), FCPF due diligence and presentation to the Carbon Fund for its acceptance;
c) Monitoring and Reporting:
d) Validation and Verification:
e) Payments and allocation of Ers to the Carbon Fund f) Post-Carbon Fund
For detail, see here.