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THE World Bank yesterday announced it was going to establish a new multi-partner fund that will pool funding from the global community, including donor countries, the private sector and foundations, for scalable pathways to greenhouse gas emission reduction.

The Scaling Climate Action by Lowering Emissions (Scale) partnership will provide grants for verifiable emission reductions and expand the funding sources for global public goods.

“Climate finance needs major new mechanisms that pool funding from the global community to accomplish actual reductions in greenhouse gas emissions across the developing world. Scale offers a key non-fragmented avenue for the global community to take action on climate change,” David Malpass, the president of the World Bank, said.

He said the verifiable emission reductions created by Scale and similar mechanisms will also be an important step toward building effective carbon credit markets.

The initiative is expected to deploy results-based climate finance where countries receive grant payments for achieving pre-agreed and verifiable results.

It will further support countries to build a track record of generating emission reductions from impactful programmes and policies they can apply to their national emission reduction targets.

It will also yield excess credits that can be offered in carbon markets with the potential to unlock additional private sector funding.

This will be through pooling public and private resources to channel additional funding to middle and low-income countries’ emission reduction programmes and also help bridge the gap between the supply of and demand for high-quality emission reduction credits by supporting large-scale climate investments.

The fund will also help countries develop high-integrity credits and enhance their access to international carbon markets.