IDB Launches MicroCarbon Development Fund
21 October 2010: Through its Multilateral Investment Fund, the Inter-American Development Bank (IDB) has launched the MicroCarbon Development² Fund, which will invest in energy efficiency programmes to benefit lower income households, microenterprises, small companies and forest communities, while combating climate change.
Fund investments will consist of residential, commercial and municipal appliance and equipment replacement programmes, such as compact fluorescent lamps, LED-powered street lighting, air conditioners, refrigerators, solar water heaters, and other systems that promote greater energy efficiency and reduce greenhouse gas (GHG) emissions. It may also invest up to 20% of its total committed capital in forest preservation and reforestation, as well as in other land-use based carbon projects. Land-use investments may use emerging carbon protocols such as the Voluntary Carbon Standard and the Climate Action Reserve, to enhance their access to the US market.
The MicroCarbon Development² Fund is expected to reach a total capitalization of US$50 million and extend financing and grants to 6-10 projects, each ranging from US$2 to US$8 million, capable of earning carbon credits under the Clean Development Mechanism (CDM), as well as under other protocols and carbon standards. [IDB Press Release]