The Carbon Initiative for Development (Ci-Dev) is a World Bank trust fund that mobilizes private finance for clean energy access in low-income countries. It delivers results-based finance to innovative and transformative business models driven by the private sector. Through 2025, Ci-Dev will have mobilized $267 million in private finance to provide low-carbon energy to more than 17 million people in the communities most vulnerable to climate change.
Ci-Dev has committed to purchase approximately $76 million in emission reductions (commonly known as carbon credits) from 12 energy access projects, all in sub-Saharan Africa. The fund will utilize the Clean Development Mechanism (CDM) as the methodological framework to quantify, verify and certify the emission reductions. However, the CDM may not be relevant after 2020 as the Paris Agreement replaces the Kyoto framework, driving the need for the international community to explore other types of crediting mechanisms (such as the SCF) to channel climate finance to client countries.
Ci-Dev objectives are:
- To demonstrate that performance-based payments for the purchase of certified carbon emission reductions (CERs) can lead to a successful and viable business model that promotes increased private sector participation, and share lessons for replication.
- To influence future carbon market mechanisms so that low income countries, and especially least developed ones, receive a greater and fairer share of carbon finance, resulting in high development benefits that avoid carbon emissions.
- To support low income countries in developing standardized baselines and establishing “suppressed demand” accounting standards in key areas such as rural electrification, household energy access and energy efficiency.
- To contribute proposals to further improve and extend the scope of the Clean Development Mechanism (CDM) for use by least developed countries (LDCs), in particular for Programmes of Activities (POA).