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Carbon Finance

A New Generation of Carbon Warriors, New Wave of Climate Action

Neeraj Prasad's picture

I knew there was something different about Carbon Expo this year as I looked up during the opening ceremony and noticed the room was packed, with standing room only for late arrivals. 

That is when I first asked myself: I know why I am here, but why are you here? I felt like a veteran carbon warrior among a sea of young fresh-faced carbon players.

I started coming to Carbon Expo in 2004, and this year, for the first time, there are plenty of people I don’t recognize. So today I took some time to ask people what they were doing here and why there seems to be a growing interest in carbon markets.

Bold Ideas from Pioneering Countries: Saving the Climate One Tree at a Time

Ellysar Baroudy's picture

Also available in: Français

Participants at the ninth meeting of the Carbon Fund in Brussels

 

"This meeting is going to be different. It’s going to be a turning point from the lofty, theoretical policy deliberation to real action on the ground to save our planet’s green lungs and our global climate." Those were my thoughts last week when I walked into a packed conference room in Brussels, Belgium, where a crowd of about 80 people from around the globe had gathered to learn about cutting-edge proposals from six pioneering developing countries with big, bold plans to protect forests in vast areas of their territories.

Chile, the Democratic Republic of Congo (DRC), Ghana, Mexico, Nepal, and the Republic of Congo came to the 9th meeting of the Carbon Fund of the Forest Carbon Partnership Facility (FCPF) to convince 11 public and private fund participants to select their proposal as one of a small group of pilots intended to demonstrate how REDD+ can work.

Putting A Price on Carbon: Nations Opt For Market-Based Solutions

Xueman Wang's picture

 Curt Carnemark/World Bank

Climate change is a threat to global development and to poverty alleviation. And yet, reducing greenhouse gas emissions is proving difficult because all players in an economy contribute to the problem. To make a difference, we must reduce our emissions in a coordinated manner.

This is no easy task. So where do we go from here?

One approach involves pricing the “externalities” that are contributing to climate change. Pricing externalities into the costs of production is nothing new. A classic textbook example is the paper mill that sits upstream from a fishing village.

Discharge from the mill pollutes the river, diminishing the fishermen’s catch. The mill freely uses the water of the river in its production of paper, but does not pay for the damage of the negative externality that it causes. To remedy the situation, regulations can be put in place to stop waste from going into the river – or the mill can pay a fine equivalent to the loss of the fishermen’s revenue.

The latter is an example of an externality priced into the cost of production. The same can be done to combat climate change.

In this case, carbon emissions are the externality that must be priced. Doing so provides a cost-effective and efficient means to drive down greenhouse gas emissions as the cost of such pollution goes up.

Kenya Soil Carbon Project Points to the Future

Neeta Hooda's picture

 Curt Carnemark/World Bank

A few weeks ago, we passed a big milestone in the World Bank Group’s climate change and development work. For the first time, small-scale farmers earned carbon credits from an agricultural land management project.

The project in western Kenya kicked off what will surely be many more soil carbon projects in coming years. It also shows how sustainable farming (such as increased mulching and less tilling) can be part of the global effort to reduce greenhouse gas emissions – while improving livelihoods for poor, rural families.

The soil carbon project, made possible by an accounting system for low-carbon farming approved in 2011, took several years to prepare and implement. I had the fortune to be right there, working with farmers on the ground in Kenya and trying to understand their reality.

VP Rachel Kyte Welcomes UN Special Envoys on Climate Change

Climate Change Group's picture

World Bank Vice President for Sustainable Development Rachel Kyte issued the following statement welcoming the United Nations announcement today of two new UN special envoys on climate change: John A. Kufuor, who served as president of Ghana from 2001 to 2009 and chairperson of the African Union from 2007 to 2008, and Jens Stoltenberg, the prime minister of Norway from 2000 to 2001 and 2005 to 2013.
 
"The appointment of President John A. Kufuor and former PM Jens Stoltenberg as the Special Envoys on Climate Change by UN Secretary-General Ban Ki-moon is a crucial step to mobilize political will in advance of the UN 2014 Climate Summit. At the World Bank Group we are working with countries to increase ambition and take climate action by highlighting their opportunities for action that build growth, jobs, and resilience. We are delighted to support the Special Envoys, who will be critical to meeting the climate challenge."

Treading Water While Sea Levels Rise

Rachel Kyte's picture
Also available in: Español | Français | العربية

 UNFCCC/Flickr

At the UN climate talks that ended wearily on Saturday night in Warsaw, negotiators showed little appetite for making firm climate finance commitments or promising ambitious climate action. But they did succeed, again, in keeping hope alive for a 2015 agreement.

The final outcome was a broad framework agreement that outlines a system for pledging emissions cuts and a new mechanism to tackle loss and damage. There were new pledges and payments for reducing deforestation through REDD+ and for the Adaptation Fund, however the meeting did little more than avoid creating roadblocks on the road to a Paris agreement in 2015. In one of the few new financial commitments, the United Kingdom, Norway, and the United States together contributed $280 million to building sustainable landscapes through the BioCarbon Fund set up by the World Bank Group.

At the same time, COP19 was an increasingly emotional Conference of Parties to the UN Framework Convention on Climate Change. The overture to this round of climate drama was provided by Typhoon Haiyan. Haiyan added, sadly, more to the mounting evidence of the costs of failure in tackling climate change. The language is inexorably moving towards one of solidarity, of justice. But for the moment, this framing is insufficient to prevent emission reduction commitments from moving backwards.

And yet again, as was the case in the climate conferences in Cancun, Durban, Doha, and now Warsaw, outside the official negotiations, there is growing pragmatic climate action driven by climate leaders from every walk of life.

The sense of urgency and opportunity is building, it just fails to translate into textual agreement.

Committed to Healthier Forests and Landscapes

Ellysar Baroudy's picture




Today, three countries – Norway, the United Kingdom and the United States – pledged $280 million to the World Bank’s BioCarbon Fund, kicking off a groundbreaking initiative for sustainable forest landscapes. 

Their significant commitment to land and forest preservation is important for two reasons.

The new Initiative for Sustainable Forest Landscapes will manage landscapes in a holistic fashion by working across sectors, rather than in “silos.” It also brings in the private sector already in the design phase, recognizing that many private firms are committed to “greening” and securing their supply chains from the impact of climate change.

Kenya’s first Carbon Credits from Geothermal Energy Pay for Schools

Patricia Marcos Huidobro's picture

Kids at the Oloirowua Primary School in Suswa, Kenya.

Last month, I drove through dust on bumpy dirt roads from Nairobi to visit the Oloirowua Primary School in Suswa, 140 kilometers northeast of the Kenya capital. The school sits on the vast savannah near Hell’s Gate National Park, an area with substantial geothermal potential.

Here, KenGen, Kenya’s electric generating company, has built the country’s largest geothermal plant with support from the World Bank. It’s part of the utility’s effort to “green the grid.”

At the school, classes are being taught outdoors and kids sit under a few trees with notebooks in their laps. Their old and crumbling school will soon be replaced by a new building that will accommodate 200 students. Their faces light up when they talk about the new school, and I feel thankful for being able to work with projects like this where I see the direct effects of our work on kids’ education.

Countries Push Forward with Greenhouse Gas Market Plans

Sarah Moyer's picture

 Shutterstock
On the outskirts of Marrakesh’s historic medina, amid bustling construction and new housing developments, the Partnership for Market Readiness’ governing group gathered this month for its final meeting of 2013.

After nearly three years of operation, this group of 30 countries has much to be proud of.

So far, nearly $30 million in grant funding has been allocated to 16 nations to support the design and development of market approaches to greenhouse gas emission reductions. A one-of-a-kind platform to exchange ideas and lessons on market approaches to mitigation has been created. And a technical work program has been launched to support country implementation of critical tools such as data management systems, offset standards, and policy mapping exercises.

A Possible Rebirth of the Carbon Market?

Chandra Shekhar Sinha's picture

 Priya.Balraju1/Flickr
Photo courtesy: Priya.Balraju1/Flickr

Many people have voiced pessimism over an international agreement to address climate change since the 2009 climate conference in Copenhagen fell short of expectations. The lack of a comprehensive, global effort to curb emissions; the failure by the United States to pass meaningful federal legislation, the continued recession in Europe; and, most recently, the election results in Australia have undermined efforts to put a price on carbon and dampened hope for market-based solutions to climate change.

The somber mood was evident at the Carbon Forum Asia, held in Bangkok between September 24 – 27.  But participants at the event also found a glimmer of hope.

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