67-History and Current Status of the World Bank "Carbon Fund"-February 2000-Environmental Commentary

67-History and Current Status of the World Bank "Carbon Fund"-February 2000-Environmental Commentary

### Establishment and Initial Efforts (2000)

On January 18, 2000, the World Bank established the Carbon Fund to reduce emissions of carbon dioxide (CO2), a greenhouse gas. The Fund is a mechanism whereby the Netherlands, Sweden, Norway, Japan, and other industrialized countries contribute a total of 9 billion yen to finance renewable energy projects in developing countries, and emission reduction achievements are incorporated into the environmental targets of each contributing country. In particular, India is shifting from coal-fired power generation to solar and wind energy, and wind farms are a new recipient of support in China. In addition, Norway has developed a tree-planting project in Africa, with the goal of reducing CO2 emissions by 5,000 tons per year.

### Carbon Price Expansion and Earnings (2020s)

By 2023, revenues from World Bank-supported carbon taxes and emissions trading (ETS) will reach $9.5 billion, with about 23% of global emissions managed through these schemes. This has accelerated countries' transition to a decarbonized economy and emission reductions. India aims to install 450 gigawatts of renewable energy by 2025, with $1.8 billion in World Bank financial support. In China, MHI and Ricoh are also expanding wind power generation with technology provided by the Bank, and World Bank support amounts to $2 billion.

### Sustainable Forestry Support and Global Warming Solutions in Africa

Norway's afforestation projects are contributing to environmental improvements in African countries and are expected to reduce CO2 emissions by 5,000 tons per year in Nigeria and Kenya. The World Bank provides financial support for these projects to promote sustainable development in these countries.

### Future Prospects and the World Bank's Role

The World Bank is providing technical advice and data analysis to countries to help them implement ETSs and carbon taxes with the aim of creating a trillion-dollar green investment market by 2030. By doing so, the Bank aims to reduce CO2 emissions by 50 billion tons per year, thereby balancing climate change measures and economic growth. In particular, it addresses challenges such as the energy crisis and inflation, and forms an important framework for achieving sustainable growth through carbon markets.

In this way, the World Bank continues to play a vital role in driving the international response to climate change and building a sustainable future for both the economy and the environment.