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Carbon Finance at the World Bank: List of Funds

Prototype Carbon Fund
A partnership between seventeen companies and six governments, and managed by the World Bank, the PCF became operational in April 2000. As the first carbon fund, its mission is to pioneer the market for project-based greenhouse gas emission reductions while promoting sustainable development and offering a learning-by-doing opportunity to its stakeholders. The Fund has a total capital of $180 million. more...

BioCarbon Fund

Since its creation in 2004, the BioCarbon Fund has allocated resources to projects that transform landscapes and directly benefit poor farmers. It was the first carbon fund established in the world to focus on land use.

Housed within the Carbon Finance Unit of the World Bank, the BioCarbon Fund is a public-private sector initiative mobilizing financing to help develop projects that sequester or conserve carbon in forest and agro-ecosystems. It has been a pioneer in this sector, developing the infrastructure needed to pilot transactions and paving the way for the growing land-use carbon market established to date. more...

Community Development Carbon Fund

The CDCF pioneers projects that benefit local communities and that generate emission reductions in some of the poorest areas of the world. The Fund is a public-private initiative designed in cooperation with the International Emissions Trading Association and the United Nations Framework Convention on Climate Change. The first tranche of the CDCF became operational in March 2003 and is closed to further subscriptions. It is capitalized at $118 million with nine governments and fifteen private sector companies participating in it.

Download the CDCF Brochure


Italian Carbon Fund
In fall 2003, the World Bank entered into an agreement with the Ministry for the Environment and Territory of Italy to create a fund to purchase greenhouse gas emission reductions from projects in developing countries and countries with economies in transition that may be recognized under such mechanisms as the Kyoto Protocol's CDM and JI. The Fund is open to the participation of Italian private and public sector entities and has a total capital of $155.6 million. more...

The Netherlands CDM Facility
The World Bank announced an agreement with The Netherlands in May 2002, establishing a facility to purchase greenhouse gas emission reduction credits. The Facility supports projects in developing countries that generate potential credits under the Clean Development Mechanism (CDM) established by the Kyoto Protocol to the UN Framework Convention on Climate Change. more...

The Netherlands European Carbon Facility
The Netherlands, acting through its Ministry of Economic Affairs, the World Bank and the International Finance Corporation (IFC) in August 2004, signed an agreement appointing the World Bank and the IFC as Trustees of the Netherlands European Carbon Facility, in order to purchase greenhouse gas emission reductions for the benefit of the Netherlands. The Facility purchases emission reductions from JI projects only, i.e. from projects located in countries with economies in transition. more...

Danish Carbon Fund
The Danish Carbon Fund (DCF) was established in January 2005 with an initial capitalization of €26.4 million. The full capitalization of the DCF now stands at €90 million. The fund consists of five Participants: the Danish Ministry of Climate and Energy, DONG Energy A/S, Aalborg Portland A.S., Maersk Olie og Gas A.S., and Nordjysk Elhandel A/S. more...

Spanish Carbon Fund
The Spanish Carbon Fund was created in 2004 in an agreement between the Ministries of Environment and Economy of Spain and the World Bank. This fund was established to purchase greenhouse gas emission reductions from projects developed under the Kyoto Protocol to mitigate climate change while promoting the use of cleaner technologies and sustainable development in developing countries and countries with economies in transition. The Fund has a total capital of $278.6 million. more...

Umbrella Carbon Facility T1

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.


Carbon Fund for Europe
The Carbon Fund for Europe (CFE) is designed to help European countries meet their commitments to the Kyoto Protocol and the European Union's Emissions Trading Scheme (EU ETS). The CFE is a trust fund established by the World Bank, in cooperation with the European Investment Bank (EIB). The Fund will purchase greenhouse gas emission reductions through the Kyoto Protocol’s Clean Development Mechanism and Joint Implementation from climate-friendly investment projects from either bank’s portfolio as well as self-standing projects. While the World Bank brings its expertise and experience of the carbon market to the CFE, the EIB brings its intimate knowledge of the European economy and a rich project pipeline in developing countries. Through the CFE, the two institutions will complement private sector development in the emerging carbon market and seek ways to support essential private carbon market development. more...

Umbrella Carbon Facility T2

Tranche 2
Tranche 2 of the UCF was intended to provide Participants with a facility to obtain post-2102 CERs. The objective of the facility was to sign new ERPAs with projects in the World Bank's existing Carbon Finance portfolio. The UCF's current capitalization is €105 million.


Forest Carbon Partnership Facility
Developing and industrialized countries have requested the World Bank to explore a framework for piloting activities that would reduce emissions from deforestation and degradation using a system of policy approaches and performance-based payments. The proposed framework is called the Forest Carbon Partnership Facility. more...

Carbon Partnership Facility

The new proposed Carbon Partnership Facility is designed to develop emission reductions and support their purchase over long periods after 2012. Its objective and business model are based on the need to prepare large-scale, potentially risky investments with long lead times, which require durable partnerships between buyers and sellers. more...

BioCF Initiative for Sustainable Forest Landscapes

The BioCarbon Fund Initiative for Sustainable Forest Landscapes (ISFL) seeks to promote reduced greenhouse gas emissions from the land sector, from deforestation and forest degradation in developing countries (REDD+) and from sustainable agriculture, as well as smarter land-use planning, policies and practices. The initiative will deploy results-based finance to incentivize changes at the landscape level.


Partnership for Market Readiness
The Partnership for Market Readiness (PMR) is a grant-based, capacity building trust fund that provides funding and technical assistance for the collective innovation and piloting of market-based instruments for greenhouse gas emissions reduction. The Partnership brings together developed and developing countries, as well as other key experts and stakeholders, in order to provide a platform for technical discussions on market instruments, foster South-South exchange, facilitate collective innovation for pilot efforts and harness financial flows for implementation and scale up. For many countries, the first step toward implementing a market-based instrument is to build market readiness capacity, such as measuring, reporting and verification systems or the creation of a regulatory framework. As such, market preparation is also a crucial part of the work of the PMR. more...

Carbon Initiative for Development
The Carbon Initiative for Development (Ci-Dev) was launched in December 2011. It will build capacity and develop tools and methodologies to help the poorest countries of the world access carbon finance, mainly in the area of energy access. more...

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