World Bank Umbrella Carbon Facility to Buy Post-2012 Carbon Credits
12 January 2011: The World Bank has announced that Tranche 2 of its Umbrella Carbon Facility (UCF) is now operational with initial funding of €68 million. This Tranche provides the opportunity for existing carbon projects to continue selling their carbon credits well beyond 2012.
Seventeen projects and programmes are being considered, with a potential to reduce a total of 26 megatons of carbon dioxide and other greenhouse gases (GHG) during the 2013-2018 period, of which the UCF Tranche 2 intends to purchase a portion. Funding for the tranche, contributed by Deutsche Bank, GDF SUEZ and the Swedish Energy Agency, will benefit investments in wind, waste management, lighting and transport projects across the developing world.
This Tranche has been developed to complement other carbon funds as it intends to purchase carbon credits far beyond the end of the Kyoto Protocol's first commitment period, thus offering project developers longer contract periods than available in the market at the moment. There is still an opportunity for new participants to join the Tranche, which will become fully subscribed when it reaches a total capitalization of €105 million. [World Bank Press Release] [World Bank UCF Tranche 2 Website]