The Transformative Carbon Asset Facility (TCAF) is a new climate protection scheme set up by the World Bank, in which the Climate Cent Foundation and the State Secretariat for Economic Affairs (SECO) are jointly participating with a share of 12.5 million US$ each. Among the other investors are the governments of Germany (2 million US$), Great Britain (60 million GBP), Canada (3 million CAD), Norway (80 million US$) and Sweden (25 million US$). The fund has a total endowment of around 210 million US$.
The Paris Agreement’s stated objective is to limit temperature rises due to anthropogenic climate change to distinctly less than two degrees. To do so, global greenhouse gas emissions must decline sharply in coming decades, leading to almost no greenhouse gases being emitted any more by the second half of the century. This can only be achieved within the context of strong international cooperation.
This is where TCAF intervenes. Studies show that –
due to strong economic growth and advancing industrialisation – emerging
countries’ greenhouse gas emissions will keep rising in years to come. TCAF
wants to support emerging countries in implementing carbon pricing measures and
sectorial emission reduction schemes, in order to break the trend of rising
greenhouse gas emissions. More concretely, the TCAF will develop and pilot test
innovative CO₂ crediting and quantification mechanisms, such as policy
crediting. The aim is to show how greenhouse gas reductions can be triggered in
a cost-effective and large-scale manner.
The TCAF has been operational
since March 2017 and is currently assessing various possible activities. First
contracts are expected to be signed in 2019.