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clean development mechanism

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.

Reducing Methane with Innovative Finance

Brice Jean Marie Quesnel's picture

 Curt Carnemark/World Bank

One key to addressing climate change is attracting private capital to finance low-carbon sustainable development.   For 2013, the World Bank estimates over US$1 trillion will flow to developing countries from private sources.  In order to increase capital flows to finance low-carbon investment, many forms of innovation are needed.  One source of innovation could come in the shape of results-based finance (RBF).   RBF, also known as pay-for-performance, was pioneered in the health sector and serves as the backbone of anticipated payments for protecting forests. It is increasingly being considered as a means for financing the adoption of low-carbon development pathways and greenhouse gas (GHG) emissions abatement. RBF provides payments for success, and only upon the delivery of pre-defined, verified results.

To see how such a results-based approach to mobilizing private sector funding could work in methane reduction, the World Bank convened - at the request of the G8 - a dedicated study group which looked at the role that pay-for-performance mechanisms could play. The resulting report from the methane finance study group found that, when implemented, pay-for-performance provided by a credit-worthy third party can be a powerful catalyst for private investment. There is potentially much wider scope for the use of pay-for-performance mechanism in climate finance for its deployment to target other GHGs in addition to methane.

Can Transport Continue to Drive Development in the Face of Carbon and Resource Constraints?

Andreas Kopp's picture

 Shutterstock

Transport drives development: It leads agricultural producers out of subsistence by linking them to markets, enables regions and nations to become more competitive, and makes cities more productive.  But transport is also a big polluter, contributing 20 percent of global energy-related CO2 emissions.  These emissions have grown by 1.7 percent annually since 2000, with 60 percent of the increase in non-OECD countries where economic growth has been accompanied by a surge in demand for individual motor vehicles.

Are attempts to change this trend bad for development? Recent historical experience tells us otherwise. Countries with the lowest emissions per passenger-km are the ‘development miracles’ of recent decades: Japan, Korea, Singapore, and Hong Kong are all champions in transport fuel-efficiency.

So what would a low-emission future look like? Some see rapid improvements in engine technology as the path to de-carbonization. (Source: IEA) The IPCC, however, finds that technical breakthroughs such as mass affordability of fuel cell cars are unlikely to arrive soon. If so, emission reductions will have to be achieved by a modal change, emphasizing mass transit, railways, and inland water transport rather than individual motorization and aviation.

China Gets Ready for a New Carbon Era

Wang Shu's picture

 Rush hour traffic on a road in Beijing, China. - Photo: Shutterstock

Also available in Chinese

The 5th Assembly of the World Bank’s Partnership for Market Readiness (PMR) is coming to an end after rich and rewarding meetings in Washington DC this week. I had the opportunity to present China’s final Market Readiness Proposal (MRP) (pdf), or in more simple language, China’s proposal to build a national emission trading system (ETS). Together with China, the PMR also received proposals from Chile, Costa Rica and Mexico on their initiatives. (Also read: Can Carbon Taxes Be Effective?)

From the Chinese perspective, our MRP serves as a summary of the Government’s initial thoughts on how a domestic ETS would be established to cover the whole country. For this to happen, a lot of work needs to be done, and this proposal provides a framework and roadmap to guide us on our journey. We are expecting domestic and international institutions, experts and stakeholders from different levels to be involved in this design process. Above all, we hope to draw on the experience of existing carbon markets around the world as well as from the seven pilot ETSs - comprising five cities and two provinces - set to start this year in China. Facilitating continuous technical dialogues, PMR serves as a knowledge exchange platform for our team from China and all the participant countries. This is a unique and valuable experience. 

Adding climate finance to our promises

Kseniya Lvovsky's picture
Photo © istockphoto.com

Here is the sad truth: Presently, the resources available for developing countries to address the impacts of climate change cover 5% of estimated needs by 2020.

One of the challenges is to mobilize the resources needed without dipping into the same basket of current official development assistance (ODA). Another challenge is to measure and monitor what is 'new and additional' from the complex web of sources and channels.

More than a technical exercise, it is a useful tool to build trust and accountability with developing countries to show that assistance is being delivered in line with promises made. 

Why so few carbon projects in Africa?

Isabel Hagbrink's picture
In Ethiopia, Humbo mountain is thriving after early regeneration efforts. Photo © World Vision

What are the obstacles to implementing carbon projects in Africa?

This was the question underlying many of the discussions at the Africa Carbon Forum, which took place in Nairobi, Kenya on March 3-5, 2010.

Over 1,000 participants attended the conference to discuss obstacles such as lack of financing, lack of experience and technical skill, land titling and monitoring challenges, and the complexity of Clean Development Mechanism (CDM) rules. These hurdles have to date resulted in low numbers of African carbon projects: only 2% of CDM projects registered by the UNFCCC are in Africa.