The World Bank Group is introducing a new thermal emission reduction fund

On Tuesday, the World Bank announced a new multi-partner fund that will raise funding from the global community – including donor countries, the private sector and foundations – for scalable pathways to reduce greenhouse gas emissions.

Scaling Climate Action by Lowering Emissions (SCALE) will provide for verifiable emission reductions and expanded sources of funding for global public goods. According to the World Bank.

David Malpass, President of the World Bank Group, said: “SCALE provides an indivisible key means for the global community to take action on climate change.”

Verifiable emission reductions created by SCALE and similar mechanisms will also be an important step towards building effective carbon credit markets. ” Climate finance requires major new mechanisms that pool funding from the global community to achieve actual reductions in greenhouse gas emissions throughout the developing world.

SCALE will deploy results-based climate finance as countries receive grant payments to achieve pre-agreed and verifiable results based on 20 years of the World Bank Group’s experience in this area.

SCALE will support countries in building a track record for generating emission reductions from influential programmes and policies that they can apply towards their national emission reduction targets.

SCALE will also achieve surplus credits that can be offered in carbon markets with the potential to launch additional private sector funding.

SCALE will combine public and private resources to channel additional funding into emission reduction programmes in middle and low-income countries, helping to bridge the gap between supply and demand for high-quality emission reduction credits by supporting large-scale climate investments and helping countries develop high safety credits and enhance their access to international carbon markets.

Social inclusion was also included in the design of all SCALE programmes.