ADB established the Future Carbon Fund or FCF in 2008 to enhance the competitiveness of low-carbon technologies and contribute to reducing greenhouse gas emissions in Asia and the Pacific. The fund aims to provide carbon finance through the pre-purchase of certified emission reductions generated by Clean Development Mechanism (CDM) projects in 2013–2020. Established as a trust fund, the FCF has six contributing participants that have collectively committed $115 million. The FCF renders bridging and enabling support to a portfolio of 33 high-quality mitigation projects. This assumes all the more significance under the prevailing transitionary phase for the international carbon market. FCF projects are implementing a spectrum of renewable energy, transport, waste management, and energy efficiency technologies in 10 developing member countries. These include least-developed countries and small island developing states where implementing CDM projects had been historically difficult and where project opportunities were relatively fewer. In the renewable energy sector alone, the FCF is providing carbon finance to support the generation of 1.1 GW of renewable energy.
Stories
Future Carbon Fund Delivering Co-Benefits for Sustainable Development
Projects supported by the FCF are providing a broad set of co-benefits to the beneficiary communities and delivering positive impact to more than 10.5 million people across Asia and the Pacific. Co-benefits include improving energy access and energy security, employment generation, diffusion of low-carbon technologies, technological innovation, health benefits associated with reduction in air pollution, reduced dependence on imported fuels, reduced traffic congestion, and an increase in net trade of technologies and services.