As initially established, the Umbrella Carbon Facility (UCF) was intended to manage the purchase of very large volumes of emission reductions (over 10 million tons CO2e) for varying groups of participants in multiple tranches. In 2006, the first tranche of the UCF (UCFT1) contracted to purchase 129.3 million tons of certified emission reductions (CERs) generated from two Chinese HFC-23 incinerators. That tranche included 16 participants, five of which were other Carbon Funds. Subsequently, in March 2008, the requirement that the Facility only purchase emission reductions from projects of over 10 million ton project minimum was eliminated.
Tranche 2 Tranche 2 of the Umbrella Carbon Facility (UCFT2) would package together a group of small to medium size projects, of varying technologies, across several countries and regions. The emission reductions from these projects represent the tail end of the first crediting period of projects already under contract with existing World Bank Carbon Funds. The tranche is intended to provide post-2012 CERs to participants in the World Bank Carbon Funds.
Anticipated participant interest in such post-2012 CERs coincides with the World Bank’s interest in supporting projects and project entities which have encountered CDM regulatory delays; from commissioning delays in countries that have not benefited from CDM as much as was hoped; from lags in the introduction of methodologies supporting transport and building energy-efficiency; and in the late start for programmatic approaches to CDM.
