Finance : Insights from Working with the Kyoto Mechanisms
Resource information
Under the Kyoto Protocol to the United
Nations Framework Convention on Climate Change (UNFCCC), the
industrialized countries adopted quantified emission
reductions obligations. Marking the 10th anniversary of the
establishment of the World Bank Prototype Carbon Fund (PCF)
the world's first global carbon fund, this report seeks
to take stock of the World Bank's experience of working
with the Kyoto Protocol's project-based mechanisms over
the past decade. The Clean Development Mechanism (CDM), as
the much larger system in terms of projects, emission
reductions and host countries, is the basis for much of the
report's discussion. Joint Implementation (JI) is also
discussed. Policy-makers and negotiators are working on
advancing the policy framework and the regulatory structures
to mitigate greenhouse gas (GHGs) at greater scale.
Furthering the use of market instruments should incorporate
the lessons of the past into future designs, making full use
of the experience and learning that has been gained. This
will mean building upon the successes of the current CDM and
JI regulatory frameworks, addressing weaknesses, and
abandoning what is not working. This publication seeks to
make a constructive contribution to this debate, in full
respect of the ongoing international climate change
negotiations, by providing insights and recommendations from
a practitioner's experience and perspective.
