Carbon Finance for Sustainable Development
Achieving the MDGs through innovative carbon finance
MDG Carbon is an innovative programme to harness the resources of the carbon market in order to bring long-term sustainable development, at scale, to wide range of developing countries. Since its launch in 2007, MDG Carbon has assisted developing countries in implementing a host of low-carbon interventions, spanning multiple technologies, active in all regions of the world, and leveraging significant sums in private-sector co-investments.
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Since its inception, MDG Carbon has assisted a large number of Clean Development Mechanism and Joint Implementation projects under the Kyoto Protocol. In order to maximize development benefits, UNDP carefully selects high MDG-impact emission reduction projects to which it provides a comprehensive suite of project development services.
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Scaled-up and sector-wide activities
Going forward, the opportunity for carbon finance is to move to mitigation actions at scale, and to draw linkages with emerging instruments such as Nationally Appropriate Mitigation Actions (NAMAs) and New Market Mechanisms (NMMs). In this regard, the CDM’s Programme of Activities (PoA) and Standardised Baseline (SB) modalities can act as an important starting point for sector-wide activities, acting as a building block for next generation carbon finance mechanisms.
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Unaddressed sources and sinks
Carbon finance typically acts through a range of domestic, regional and international policy and financial instruments. However, a number of significant sources and sinks of greenhouse gasses (GHGs) are currently not covered by these instruments, for example: ozone depleting substances (ODS), peatlands, biochar and black carbon. Where appropriate, MDG Carbon aims to explore the use of carbon finance to tackle these unaddressed sources and sinks.
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On April 11-12, 2015 UNFCCC organized an African Regional Workshop on Carbon Finance. UNDP's work on the standardized baseline for the rice sector in the Philippines (ASB0008), which became the building stone for the Philippine Adaptation and Mitigation Initiatives in Agriculture was presented as a replicable example for Africa.