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Carbon Partnership Facility: Innovation in Scaling-up Emission Reductions

Richard Zechter's picture
LED lights are part fo an energy efficient street lighting program in Thailand. Carbon Partnership Facility

We’re about 16 months away from the 2015 UN climate meeting in Paris, intended to reach an ambitious global agreement on climate change. Now, more than ever, there is a need for innovation to scale up climate action.

The Bank’s Carbon Partnership Facility (CPF) is helping blaze that trail.

The role of the CPF is to innovate in scaling up carbon crediting programs that promote sustainable, low-carbon economic growth in developing countries. In its first set of programs, the CPF moved past the project-by-project approach to larger scale through the Clean Development Mechanism’s Programme of Activities, catalyzing investment in methane capture from landfills, small-scale renewable energy, and energy efficiency.

Shaping the Next Generation of Carbon Markets

Rachel Kyte's picture

 Smoke coming out of two smokestacks at a factory in Estonia. - Photo: World Bank/Flickr

Right now, the carbon markets of the future are under construction in all corners of the world.

China is determined to pursue low-carbon development and is embracing the market as the most efficient way to do so. Wang Shu, the deputy director of China's National Development and Reform Commission, told us this week that he sees the "magic of the market" as the most efficient way to drive China's green growth.

Five Chinese cities and two provinces are piloting emissions trading systems with the goal of building a national carbon market. Chile is exploring an emissions trading system and focusing on energy efficiency and renewable energy. Mexico is developing market-based mechanisms in energy efficiency that could cut its emissions by as much as 30 percent by 2020. Costa Rica is aiming for a carbon-neutral economy by 2021.

Each of the countries pioneering market-based mechanisms to reduce their domestic carbon emissions are leaders. Bring them together in one room, and you begin to see progress and the enormous potential for a powerful networking domestic system that could begin to produce a predictable carbon price -- a sina que non for the speed and scale of climate action we need.

That's happening this week at the World Bank.

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LED bulbs, potted plants and electric cars - the story of climate innovation in Vietnam

Anthony Lambkin's picture

We raised glasses and cheered to the future success of Mr. Minh’s company. I had just visited his manufacturing facility where his company ASAMLED produces light-emitting diode (LED) lights for a variety of applications. A 40 person start-up and the only LED lighting company to manufacture over 90% of the final product locally, ASAMLED had the makings of Vietnamese clean tech success story. But as the day rolled on, we began discussing the real challenges the company and industry face. Starting an energy efficiency business in a country where energy is cheap and Chinese importers (who he called ‘screw-driver innovators’) are plenty, is not easy.

He told me how ASAMLED was conducting market tests with dragonfruit farmers. Using LEDs at night, dragonfruit production could jump from four harvests a year to nine – good news for the Vietnamese farmers who supply 40% of the fruit’s market in Europe. But he explained research like this was expensive and difficult to do with limited resources. According to him, the World Bank-run Climate Innovation Center could help him advocate his technology, inform consumers and access funding to market test a host of new LED applications.