Community Development Carbon Finance toolkit

IIED's environmental economics programme prepared a carbon finance toolkit for the World Bank's Community Development Carbon Fund, highlighting the potential for incorporating carbon finance into community development projects.

2008 - 2009

The Community Development Carbon Fund (CDCF) was one of the World Bank’s Carbon Finance Funds, contributing to poverty reduction through carbon trading.

The role of the Carbon Finance Funds was to catalyse a global carbon market that would reduce transaction costs, support sustainable development and reach and benefit the poorer communities of the developing world.

The CDCF was created to extend the benefits of carbon finance to the poorest countries, and in particular the poorest areas of the poorest countries, which would otherwise find it difficult to attract carbon finance because of country and financial risk.

The CDCF supported projects of measurable benefit to poor communities and their local environment that generated Kyoto-compliant emission reductions. One key objective of the CDCF was to ensure that communities were empowered to play an active role in the delivery of services that would help improve their livelihoods and thus reduce poverty.

What IIED did

This project developed a toolkit to serve as a guide for task team leaders in the World Bank as well as local governments and communities. The aim was to help them to better understand carbon finance and the CDCF-related activities, and to help them streamline carbon finance components within the design of their projects.

The toolkit was formally disseminated at the Africa Carbon Forum in March 2010 in Nairobi.