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About The Netherlands Clean Development Mechanism Facility (NCDMF)

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 in exchange for such credits under the Clean Development Mechanism (CDM) established by the Kyoto Protocol to the UN Framework Convention on Climate Change.

The fund purchases Emission Reductions from projects in the following categories: (i) renewable energy technology, such as geothermal, wind, solar, and small-scale hydro-power; (ii) clean, sustainably grown biomass (no waste); (iii) energy efficiency improvement; (iv) fossil fuel switch and methane recovery; (v) sequestration.

Opportunities for Both Developed and Developing Countries
For developed countries, such as the Netherlands, the establishment of a clean development mechanism facility increases the range of options for complying with their Kyoto Protocol emission reduction requirements, while at the same time promoting sustainable development, capacity building, fostering of knowledge, and market creation.

The Netherlands CDM Facility provides an excellent opportunity for many more developing countries to gain invaluable experience, by undertaking their first commercial transactions for the purchase of emission reduction credits under the CDM, and to compete in the emerging global carbon market.

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