There has been an announcement by the World Bank of a new fund for reducing emissions on a global scale

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By Suraj Bediya

The World Bank today unveiled a new multi-partner fund that would combine resources from the international community, including contributions from donor nations, the business sector, and foundations, to find scalable solutions for reducing greenhouse gas emissions. The Scaling Climate Action by Lowering Emissions (SCALE) alliance will increase the funding sources for global public goods and offer incentives for verifiable emissions reductions.

David Malpass, President of the World Bank Group said, “Climate finance needs major new mechanisms that pool funding from the global community to accomplish actual reductions in greenhouse gas emissions across the developing world. SCALE offers a key non-fragmented avenue for the global community to take action on climate change.” The verifiable emission reductions created by SCALE and similar mechanisms will also be an important step toward building effective carbon credit markets.

Taking advantage of the 20 years of experience the World Bank Group has in this field, SCALE will implement results-based climate finance, wherein nations receive grant payments for reaching pre-agreed, verifiable results.

To achieve their national emission reduction targets, SCALE will help countries establish a track record of reducing emissions through effective programs and policies. Additionally, SCALE will produce surplus credits that might be sold in carbon markets to potentially raise more private finance.

To increase funding for middle- and low-income countries’ emission reduction initiatives, close the gap between the supply and demand for high-quality emission reduction credits by supporting significant climate investments, and assist nations in creating high-integrity credits and improving their access to global carbon markets, SCALE will pool public and private resources.

Each SCALE program is created with social inclusion in mind. Through carefully crafted benefit-sharing arrangements, a linked fund under the SCALE umbrella called Enabling Access to Benefits while Lowering Emissions (EnABLE) improves the engagement of marginalized communities and indigenous peoples in the partnership’s initiatives.