The Danish Carbon Fund became operational in January 2005 to purchase emission reductions from projects under the Kyoto Protocol’s Clean Development Mechanism (CDM). It supported projects that were consistent with all international rules and procedures established under the Kyoto Protocol’s clean development and joint implementation mechanisms, and that complied with the operational policies and procedures of the Bank, including the World Bank’s Safeguard Policies, Country Assistance Strategies, applicable National Sustainable Development Programs and Poverty Reduction Strategy Papers. The Danish Carbon Fund purchased emission reductions from a wide range of sectors, including waste management, energy efficiency, renewable energy, oil and gas and HFC-23 reduction.
- About
- Scope of work
- Structure and governance
- Funding
- Objectives
- Participants
- Fund publications
- Multimedia
- Media coverage
About
Scope of work
The vision for the fund upon its establishment was for it to have a life of five years from the operational date of the first tranche of the fund. After five years, it was planned that either the management of the fund would be passed to a third party, or the participants, upon agreement with the World Bank, would request the World Bank to continue its role as a trustee till December 21, 2013. The World Bank, as a trustee of this fund, had the discretionary right to decide to terminate the fund at any given time.
Under the agreement establishing the fund, the World Bank was supposed to fully recover its costs in creating Kyoto-compliant emissions reductions, have the resources to supervise the underlying projects and maintain the associated emissions reductions assets in accordance with the Kyoto Protocol over the 10-14-year periods of most emissions reductions purchase agreements.
Objectives
- To build knowledge and understanding of the flexible mechanisms of the Kyoto Protocol and support implementation of projects among the participants through their engagement in the activities of the fund.
- To help build Danish private and public sector capacity to meet Danish climate obligations arising from the Kyoto Protocol.
Participants
| Public sector | |
| Denmark | Government of Denmark |
| Private sector | |
| Denmark | DONG Energy A/S |
| Aalborg Portland A/S | |
| Mærsk Olie og Gas A/S | |
| Nordjysk Elhandel A/S |
