Cutting emissions
the World Bank has launched a us $150 million fund to help developing countries invest in cleaner technologies that will reduce their greenhouse gas emissions. The programme, known as the Prototype Carbon Fund, will be funded by corporations and industrial nations which will receive emission reduction certificates.
"We are determined to explore how market-based mechanisms involving the considerable financial muscle of the private sector can contribute to addressing the twin challenges of climate and sustainable development," said James Wolfensohn, president of the World Bank. Probably for the first time a market-based initiative has been launched to address greenhouse gas emissions. The bank said the fund will invest in projects in developing countries that will help them produce cleaner energy.Reduction of these emissions will be independently verified, and then transferred to the carbon fund contributors in the form of certificates instead of cash, the bank said. So far, Finland, the Netherlands, Norway, and Sweden have contributed money for the bank's carbon fund. Among the companies financing the fund are Japan-based Tohoku Electric Power Co, Chubu Electric Power Co, Shikoku Electric Power Co Inc, Chugoku Electric Power Co, and the Belgian power company, Electrabel. Also involved are the Japanese trading houses Mitsubishi and Mitsui.
The bank said top executives of Norway's state oil firm Statoil, Gaz de France, and us -based Environment Banc were also considering participation in the fund. The fund is capped at us $150 million, and will start operations in April. During the next three years, the World Bank will invest the fund's proceeds in 20 or so projects. Greenhouse gas emissions have been blamed by many scientists for contributing to global warming. In 1997, Washington signed a global treaty in Kyoto to reduce carbon emissions to 1990 levels by 2012, but negotiations to finalise the accord with other nations are still underway.
Most greenhouse gas emissions are caused by automobiles, coal-burning power plants, gasoline fumes and other industrial plants. Washington has urged other countries to help develop an international emissions trading market.
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