Future Carbon Fund
What is the fund?
The Future Carbon Fund is a trust fund established and managed by ADB on behalf of fund participants. The fund is a component of ADB's ongoing Carbon Market Program (CMP), which provides financial and technical support for Clean Development Mechanism (CDM) projects. It became operational in January 2009.
What are the objectives of the fund?
The fund seeks to:
- support and encourage energy efficiency and renewable energy projects, and other projects with long-term greenhouse gas (GHG) abatement benefits beyond 2012 undertaken in developing member countries (DMCs)
- assist Participants that have mandatory or voluntary GHG reduction targets and policies beyond 2012 by providing ongoing access to certified emission reductions (CERs) and verifiable emissions reductions (VERs)
- enhance the affordability and attractiveness of low-carbon technologies over conventional options through the reduction of the initial capital barriers of GHG mitigation projects
What kind of activities will be supported by the fund?
The fund is targeting the following project types:
- energy efficiency
- industrial technology
- supply-side technology (e.g., upgrade of generation equipment)
- public transport and vehicle efficiency
- renewable energy
- small-to mid-scale run-of-river hydropower
- wind power
- solar power
- geothermal power
- methane capture and utilization
- coalmine methane
- solid waste and waste water treatment
Who is eligible to receive the grant?
Eligible projects should meet the following criteria:
- be located in one of ADB's DMCs that is also a non-annex one country under the Kyoto Protocol and eligible to host CDM projects
- be (a) financed by ADB through a loan, equity investment, or guarantee, have entered into an agreement(s) with ADB for financing the project, or (b) supported with technical assistance from ADB's Carbon Market Initiative and have entered into agreements with a third party or parties for financing the project (satisfactory to the Trustee)
- generate CERs that result in permanent GHG Reductions and not temporary GHG Reductions
- comply with ADB Operational Policies and Procedures
Who supports the grant?
On its closing date of 31 March 2010, the fund received financing commitments from the following public and private partners:
- Republic of Korea
- 2 private sector partners