The World Bank announced the formation of a trust fund to pool public funds and provide grants for carbon-reduction projects such as coal-fired power station decommissioning.

In a LinkedIn post, World Bank President David Malpass said that the Scaling Climate Action by Lowering Emissions (SCALE) fund will provide grants to developing countries as long as they meet pre-agreed goals for lowering greenhouse gas emissions.

SCALE will be the new trust fund that will cover all of the bank's activities in climate finance. Malpass said that the World Bank was putting money into the new fund so that it could be launched at the COP27 climate change conference in Egypt in November.

In a paper given to the joint Development Committee of the World Bank and the International Monetary Fund, the bank said it had identified three areas that are extremely advantageous for these results-based financing grants: natural climate solutions based on agriculture, forestry, land use, and oceans; sustainable infrastructure, such as energy and transportation; and fiscal and financial solutions that directly or indirectly mobilise resources for climate actions.

The bank said that the SCALE fund would bring new resources to projects that reduce emissions in low- and middle-income countries, help create huge projects, generate high-quality carbon credit assets, and help countries get better access to carbon markets around the world.

Source: The Business Standard

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