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Carbon finance in development projects: potential requiring investigation

Faced with the structural crisis in the carbon market, can carbon credit funding mechanisms continue to offer income opportunities for development projects?

Against a backdrop of dwindling traditional funding, carbon finance may have major advantages but its effectiveness has yet to be fully investigated. To this end, the NGOs AVSF, Initiative développement and GERES commissioned a cross-cutting study. Supported and co-funded by F3E, this study was conducted over a period of more than eight months by a team of independent consultants and its findings were first aired in public on 13 January in Paris.

The principles of carbon revenue allocation with a view to scaling up, fair distribution of income to communities involved in projects, the process of consultation and dialogue and methodologies capable of guiding allocation decisions were amongst the aspects tackled.

Following this first stage of debate on building a common vision, the NGOs concerned will be issuing recommendations on optimum, ethical, transparent use of carbon finance in development projects. Next stop March 2014.

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