World Bank launched $500 million dollars Transformative Carbon Asset Facility

The World Bank has launched a $500 million dollars Transformative Carbon Asset Facility (TCAF) to help developing countries pay for emission reductions and combat climate change. It is market-based scheme specially designed to help developing countries and would establish the world’s first programmatic carbon market. Key facts The scheme will reward countries for reducing emissions by paying a fee for each tonne of carbon dioxide (CO2) reduced. The facility will help countries implement their Intended Nationally Determined Contributions (INDCs). Of the total 500 million dollars, Germany, Norway, Sweden and Switzerland have jointly pledged an initial 250 million dollars investment. The scheme would support renewable energy, energy efficiency and waste management projects as well to cut emissions in cities and from the transport sector.