For large scale renewables such as geothermal, the preparation, construction and commissioning could take four to five years. For industrial and residential energy efficiency programs, the lead time to emission reductions generation is shorter, likely two to three years.
The Transformative Carbon Asset Facility 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, including those achieved through policy actions. The facility 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.
- TCAF will assist countries to implement market-based carbon pricing and sectoral mitigation measures in the emitting sectors of these countries’ economies.
- TCAF will leverage public finance through these programs to create favorable conditions for private sector investment in low-carbon technologies, provide blueprints for efficient and low-cost mitigation (globally and at scale), and achieve lasting transformational impact.
- TCAF’s efforts will inform the international process established in Paris to develop standards and agreements for future carbon crediting instruments and transfer of mitigation assets.
- TCAF will test various methods to transparently transfer “mitigation outcomes” between parties and to provide stringent accounting and transparency, thereby ensuring the environmental integrity of the assets.
Climate Cent Foundation, Germany, Norway, Sweden, Switzerland, Canada, and the United Kingdom
TCAF funding can be used to leverage private financing.
The World Bank Group works with the countries to develop the initiative.
This fund supports developing countries.
IBRD and IDA borrowing countries