The Environmental Economics Programme together with South North prepared a carbon finance toolkit for the Community Development Carbon Fund of the World Bank.
This is aimed at multiple audiences including Task Team Leaders, Local Government and local communities to help them better understand carbon finance and the potential for incorporating carbon finance into community development projects.
The Community Development Carbon Fund (CDCF) is one of the World Bank’s Carbon Finance Funds that contributes to poverty reduction through carbon trading. The role of the Carbon Finance Funds is to catalyse a global carbon market that reduces transaction costs, supports sustainable development and reaches and benefits the poorer communities of the developing world.
The CDCF was created to extend the benefits of carbon finance to the poorest countries and in particular the poorest areas of the poorest countries, which would otherwise find it difficult to attract carbon finance because of country and financial risk. The CDCF supports projects that measurably benefit poor communities and their local environment and generate Kyoto-compliant emission reductions. One key objective of the CDCF is to ensure that communities are empowered to play an active role in the delivery of services that help improve their livelihoods and thus reduce poverty.