About

The Italian Carbon Fund (ICF) was created in 2004 to purchase greenhouse gas emission reductions from projects in developing countries and countries with economies in transition that may be recognized under such mechanisms as the Kyoto Protocol’s Clean Development Mechanism (CDM) and JI. Starting in June 2003, the Bank entered discussion with the Government of Italy through its Ministry for the Environment and Territory of Italy (government) regarding the establishment of a Bank-executed trust fund, initially to be financed through contributions from the government and subsequently also to include contributions from Italian companies. Consultations were held with various stakeholders within Italy, including members of the Italian industry. The Participation Agreement was signed in mid-February 2004 with the Ministry of Environment and Territory in Italy. The Ministry of Environment and Territory in Italy participated in the World Bank’s Community Development Carbon Fund.

Scope of work

The ICF provided one alternative for obtaining emission reductions while at the same time helping developing countries achieve sustainable development by leveraging substantial investments— including investment from the private sector in modern energy services and technologies. As with other carbon funds facilitated by the World Bank, the income from payments by participants in the fund was used for project identification and preparation activities such as capacity building, outreach and research—leading to the creation of supportive project approval systems in host countries.

The ICF project portfolio included support for various regions, namely East Asia and Pacific, South Asia, and North Africa and the Middle East. Examples of technologies under the ICF project portfolio include HFC-23 destruction, energy efficiency, hydropower, urban landfill gas, and gas recovery. 

Objectives

The Italian Carbon Fund had three main objectives:

  • Purchasing emission reductions at a competitive price to reach the reduction targets of the domestic program for the allocation of quotas of permissible emissions;
  • Promoting international projects in renewable energy and energy efficiency;
  • Acquiring knowledge and experience on carbon finance and the carbon market.

Participants

Public sector
Italy Government of Italy
Private sector
Italy Enel Trade S.p.A.
E.O.N. Produzione S.p.A.             
ERG S.p.A.          
IREN Mercato S.p.A.
Italcementi S.p.A.
Cementerie Aldo Barbetti S.p.A.

Portfolio projects