Contacts: Anita Gordon : In Bali 62-(0)811-969-3554 In Washington: 202-473-1799 agordon@worldbank.org Roger Morier: in Bali 62-(0)811-969-3552 In Washington: 202-473-5675 rmorier@worldbank.org BALI, INDONESIA, December 13, 2007— Norway today became the latest entrant into the Forest Carbon Partnership Facility which was launched this week at the UN Climate Change conference in Bali. Norway’s US$5 million commitment brings the new facility’s resources to US$165 million. Working through two mechanisms -- the Readiness Mechanism and the Carbon Finance Mechanism -- the Forest Carbon Partnership Facility (FCPF) will help reduce deforestation and forest degradation. Developing countries will earn money from carbon dioxide emissions realized by keeping their forests standing. “Norway has been an extraordinarily good partner for the World Bank in a number of areas so we are delighted that Norway is taking this significant step,” said World Bank Group President Robert B. Zoellick. “It is a sign of Norway's steadfast commitment to development. Whether in health, forestry or other areas, Norway plays a leadership role, and we very much appreciate this partnership.” More than a decade ago, Norway played a pivotal role with the World Bank in the creation of the first global carbon fund (the Prototype Carbon Fund) and is now one of the first 10 countries to sign onto the groundbreaking Forest Carbon Partnership Facility. “Norway is pleased to chip in to the funding of this innovative mechanism, hoping other countries will follow suit. I also hope it will serve as an important catalyst for large scale private financing,”says Erik Solheim, Minister of Environment and International Development of Norway. Many developing countries have expressed their interest in participating in the FCPF. To date, 30 countries from Latin America, Africa and the Asia-Pacific region, have requested an opportunity to participate. ### For more information on Carbon Finance at the World Bank, please visit the website: www.carbonfinance.org ANNEX: FCPF Mechanisms: The FCPF consists of two separate mechanisms, each with its own trust fund for which the World Bank will act as Trustee: The Readiness Mechanism (target size: US$100 million) will assist approximately 20 countries in preparing themselves to participate in a future, large-scale, system of positive incentives for REDD. This will include some basic “infrastructure capacity building” for these countries such as preparing a national REDD strategy, establishing a baseline (i.e., reference scenario) and putting in place a monitoring system. Indigenous groups and other forest dwellers will participate in the process so they can benefit from future carbon finance flows. The Carbon Finance Mechanism (target size: US$200 million) will enable an initial group of these countries that will have successfully participated in the Readiness Mechanism to pilot incentive payments for REDD. The Carbon Fund will remunerate the selected countries or actors within the selected countries, in accordance with negotiated contracts, for emissions reductions that are verified independently. |
RSS