About Spanish Carbon Fund (SPF)
The Spanish Carbon Fund is a public/private partnership administered by the World Bank on behalf of the Government of Spain, with the objective of purchasing greenhouse gas emission reductions from renewable energy, energy efficiency and other projects that contribute significantly to sustainable development in developing countries and countries with economies in transition.
The Fund—a public/private partnership administered by the World Bank—will purchase a minimum of 34 million tons of carbon dioxide equivalent. The emission reductions generated by the projects included in the Fund’s portfolio could be eligible to be considered for registration under the Kyoto Protocol’s Clean Development Mechanism (CDM) and Joint Implementation (JI) Mechanism, as well as the Emissions Trading Scheme (ETS) of the European Union.
The Fund, which started operations using financial resources provided by the Spanish Government, is open to the participation of Spanish public and private entities. The minimum contribution for private sector participants is set at US$2.5 million payable under annual installments.
The Fund's Objective
Spain has decided to achieve its greenhouse gas emission reduction target through a combination of implementation of domestic reduction measures and the use of the flexible mechanisms defined by the Kyoto Protocol. The Fund is one of the initiatives implemented by the Spanish Government to achieve this goal.
The main objectives of the Spanish Carbon Fund are:
Through the projects included in its portfolio, the Spanish Carbon Fund will contribute to improving the knowledge and the governance schemes of the projects’ host countries, complementing other development programs and projects managed and coordinated by the World Bank.
The Fund will also promote active participation of project developers, technological innovators and certifying institutions in the growing market for carbon finance.
Spanish Carbon Fund Portfolio
- To purchase greenhouse gas emission reductions to contribute to Spain’s emission reduction target at a competitive cost.
- To promote renewable energy and energy efficiency projects in developing countries and countries with economies in transition.
- To acquire knowledge and experience on carbon finance and to share that experience with the Fund’s participants and stakeholders.
The Fund is designed to include projects from many regions, including Latin America, North Africa, East Asia, South Asia, Eastern Europe and the Russian Federation.
Projects that may be eligible under the Spanish Carbon Fund comprise an array of technologies that include:
- Renewable energy. Projects aimed at maximizing the share of renewables in the energy generation profile, including small or medium hydro projects and wind projects.
- Biomass and agricultural waste products. Generation of heat and electricity using crop waste such as rice husks, sugar cane bagasse, paper plant residues, among others.
- Urban waste management. Improving liquid and solid waste treatment systems, creating an opportunity to generate heat and/or power from the gases captured in the process while contributing to the welfare of local communities.
- Industrial processes. Reducing greenhouse gas emissions through improving industrial processes or by reducing end-of-pipe gases, concurrently improving environmental and social conditions in the project host country through “green” energy projects developed through carbon revenue.