New Financing for Climate Protection: World Bank

Jakarta - The World Bank has announced that the Finnish, German, and Norwegian governments have contributed US$180 million to the Forest Carbon Partnership Facility (FCPF) that it administers. "The forests are declining along with global efforts to decrease global carbon use and to face the challenge of climate change in the future," said Vice President of the World Bank for Sustainable Development Rachel Kyte in a written statement here on Monday. Because of this, she noted, the World Bank was very pleased with the ongoing support of the FCPF from the donor countries. The FCPF was established by the multilateral financial institution to provide compensation to developing countries for reducing their carbon-dioxide emissions to preserve their forests. The contribution of new funds raises the FCPF¿s capital to US$650 million and ensures support for the efforts of developing countries in reducing the loss of forest coverage and the level of greenhouse-gas emissions. The FCPF is funded by the Readiness Fund, some US$260 million, which provides financing for developing countries to plan their national strategies for reducing emissions from deforestation and forest degradation. Other funding of about US$390 million comes from the Carbon Fund. It provides payment upon verification that emissions have truly been reduced, using REDD+ programs that run in the affected countries. Some ministries in Indonesia have developed action plans associated with protection against the effects of climate change. (*)