World Bank President Robert Zoellick has launched a fund to support carbon trading initiatives at the sidelines of the ongoing Cancun climate summit.
The Partnership for Market Readiness will back carbon market readiness initiatives that cover technical, policy and institutional interventions. The new fund seeks to mobilize capital worth USD100 million and is expected to begin operations in early 2011.
Australia, the European Union and U.S. have committed a total of USD20 million for the fund, while Germany, Japan and the U.K. have also pledged financial support for the fund.
In Cancun, the World Bank, Denmark and United Nations Development Program have announced another initiative meant to increase the access of small island nations to renewable sources of energy.
The Danish government has pledged 80 million kroner (USD14.5 million) for the initiative. The funding will help island countries in Africa, the Caribbean and Pacific promote low-emission, climate-resilient economies.
The World Bank and UNDP will manage the initiative.