World Bank Carbon Finance Unit

World Bank Carbon Finance Unit uses funds contributed by governments and companies in Organization for Economic Cooperation and Development (OECD) countries to purchase project-based greenhouse gas emission reductions in developing countries and countries with economies in transition.

The emission reductions are purchased through one of the unit's carbon funds or facilities on behalf of the contributor, and within the framework of the Kyoto Protocols Clean Development Mechanism or Joint Implementation.

The World Bank has taken a leadership role in shaping the next generation of carbon instruments for the post-2012 period by developing new approaches to performance-based payments.

The World Bank's six most recent carbon instruments aim to scale up emission reductions, focus on readiness for market-based carbon initiatives, increase access to energy in least developed countries, and reduce emissions from deforestation and forest degradation.

These carbon inititaives have a total fund allocation of more than $1 billion and $0.5 billion committed for technical assistance. In 2013 alone, $640 million was raised for these new carbon initiatives.