Transformative Carbon Asset Facility

Climate change is a fundamental threat to sustainable economic development and the fight against poverty. A warming planet threatens to put prosperity out of reach of millions. Pricing carbon is a necessary element in spurring climate change mitigation action. TCAF which is managed by the World Bank and supported by countries like Germany, Norway, Sweden, Switzerland and United Kingdom, is an important initiative in the international fight against climate change. The facility will 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 support countries to implement market-based carbon pricing and sectoral mitigation measures, and in the process pilot new and innovative greenhouse emission reduction crediting mechanisms, providing blueprints for efficient and low-cost mitigation globally and at scale. The instruments that will be piloted by the Fund will provide a financial incentive in the form of payments for verified emission reductions, or carbon credits. The Fund will aim to support programs that can achieve results relatively quickly and that are scalable.

Greater participation/mobilization of private and public sector financing for low carbon development in relevant sectors.

Mitigation from crediting programs.

Establishment of necessary technical requirements for further mitigation activities/programs.

Risultati principali attesi:  

Countries have formally entered in the TCAF portfolio with donors agreeing to a funding envelope.

Financing mobilized from private and public sources.

High Quality baseline methodology and stringent Measurement, Reporting and Verification system in place, endorsed by host country agencies and TCAF Contributors when appropriate.

Crediting programs have received disbursements in support of TCAF interventions.

Innovation, learning, and Knowledge dissemination.