Community Development Carbon Fund

The CDCF worked on delivering the following key community benefits:

• Improving local infrastructure – This category of benefits included a range of activities such as construction of sewage facilities, potable water connections, construction and rehabilitation of local roads, renovations to local schools and health clinics, construction of parks, community centers etc. These benefits were typically provided as part of an additional CBP.
• Improving access to clean energy for heating and cooking – These projects contributed to providing poor rural households with cleaner and more affordable energy solutions. They also contributed to decreasing the negative impact on health of using firewood or inefficient heating systems.
• Improving livelihood and employment opportunities – CDCF projects sought to directly benefit the labor force employed in the industry by enhancing sector productivity, job security and increasing incomes. In many cases, employees benefited from year-long employment and equal pay for men and women, often in contrast to the traditional industry norm. Furthermore, most CDCF projects have had some tangential impact on employment creation at the local level, as the construction, operation and maintenance of CDCF projects often entailed the hiring of community residents.
• Improving access to electricity and energy-efficient lighting – These projects included renewable energy projects (such as micro-hydro and solar) and energy efficient lighting programs that focused on the installation of compact fluorescent lamps. These projects typically provided direct benefits in the form of energy bill savings, as well as increased economic activity due to a more reliable and brighter lighting.

As compared to other Clean Development Mechanism (CDM) projects, most CDCF projects have been targeted towards communities with high levels of poverty.

The CDCF was unique in that its projects measurably contributed to local community welfare through direct or indirect co-benefits. Such co-benefits were typically meant to arise from the project itself and include contributions to local employment and infrastructure, freeing up financial resources for households, and improving air quality and living conditions. In cases where there were limited or no identifiable benefits integral to the project, a separate Community Benefits Plan (CPB) was prepared in consultation with the identified beneficiary communities. These indirect benefits were typically financed by an additional price premium attached to each credit sold. Activities implemented under the CBPs benefited both men and women in identified communities. Examples of the types of goods and services provided by the CBP include: access to social services and economic infrastructure such as rehabilitation of, and provision of equipment for schools or health clinics, capacity building and training workshops and micro-lending programs.