The World Bank Carbon Finance Unit (CFU) uses money contributed by governments and companies in OECD countries to purchase project-based greenhouse gas emission reductions in developing countries and countries with economies in transition. The emission reductions are purchased through one of the CFU's carbon funds on behalf of the contributor, and within the framework of the Kyoto Protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI).
The World Bank has been supporting these mechanisms since 1999 in a variety of carbon funds and facilities. Carbon funds and facilities under World Bank management have grown from $145m to $2.3b since year 2000. They have demonstrated the role market instruments can play in supporting cost-effective emission reductions and channeling mitigation finance to developing countries.
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