Country:Denmark
Year:2005
Policy status:In Force
Date Effective:2005
Date Amended:

2014

Policy Type:Economic Instruments>Fiscal/financial incentives, Economic Instruments>Market-based instruments
Policy Target:Framework/ Multi-sectoral Policy
Agency:Ministry of Environment
Funding:€57.985 million as of August 2005
Description:

Managed by the World Bank, the Danish Carbon Fund (DCF) was established in January 2005 with two public sector participants (the Danish Ministry of Foreign Affairs and the Danish Environmental Protection Agency) and two private sector participants (Elsam Kraft and Energi E2). In the summer of 2005, three other private sector participants (Aalborg Portland, Nordjysk Elhandel, and Maersk Olie) joined the DCF, increasing the Fund’s capital from 46.3 million euros in January 2005 to 57.985 million euros in August 2005. The DCF is open to considering CDM projects throughout the developing world, and as such treats all regions equally, without favoring one particular region over another. Moreover, the DCF seeks to contribute to the mitigation of greenhouse gases in countries with economies in transition, so a portion of its overall capital is committed to the purchase of emission reductions from JI and CDM projects in countries in Eastern Europe and Central Asia. The DCF has also adopted a pragmatic and flexible approach with respect to the technologies that it considers for its portfolio, albeit it has a preference for projects in the areas of wind power, combined heat and power (co-generation), hydropower, biomass, and landfills. The DCF also favors investment in smaller communities that are particularly vulnerable to climate change. A portion of the DCF capital ($5.125 Million) has thus been committed to the World Banks Community Development Carbon Fund.

This record supersedes:Denmark Carbon Facility

Last modified: Wed, 26 Nov 2014 09:55:56 CET