World Bank Launches Forest Carbon Fund
The World Bank on Tuesday launched plans for a target size 300 million US dollar fund to fend off global warming by preserving th worlds forests.
The new financing mechanism, launched at UN talks on tackling climate change, aims to turn better forest management into a tradable commodity to try to halt destruction so rapid it accounts for around a fifth of annual carbon emissions.
A 100 million dollar “readiness” fund will provide grants to around 20 countries to prepare them for large-scale forest protection under a future climate change deal. A second 200 million dollar “carbon finance mechanism” will allow some of these countries to run pilot programs earning credits for curbing deforestation.
– This initiative is a practical pilot to expand the tools for climate change negotiations, World Bank President Robert Zoellick said.
Countries that complete a first step under the new Forest Carbon Partnership Facility (FCPF) would then be eligible to a “carbon finance fund” under which they would be financially compensated for the carbon emissions saved by preserving their forests.
Germany is the top contributor to the fund, offering 59 million of the 160 million dollar pledged by nine countries and a US group. “We must not lose another day when it comes to climate and forest protection”, German Development Minister Heidemarie Wieczorek-Zeul said in a statement, adding: “Forest protection must be a central element in a future agreement on climate change”.
The World Bank said that indigenous groups who live in tropical areas would be given observer status in the governance of the mechanism.
The World Bank and some of the international ministers present highlighted the importance of consultation with indigenous people before a projects starts.
– Under the terms of the facility, governments will ensure that indigenous people dependent on forests, as well as other forest dwellers, will be meaningfully consulted during the drafting of their countrys Readiness Plan and REDD Strategy, and benefit from capacity building, Zoellick said.
Thirty countries from Latin America, Africa and the Asia-Pacific region have requested an opportunity to participate, Zoellick said.
Kilde: www.worldbank.org
