The Carbon Initiative for Development (Ci-Dev) was launched in December 2011 to build capacity and develop tools and methodologies to help the world’s poorest countries access carbon finance, mainly in the area of energy access. It is set up to use performance payments based on reduced emissions to support projects that use clean and efficient technologies in low-income countries.

The objectives of the Ci-Dev are the following:

• To demonstrate that performance-based payments for the purchase of certified carbon emission reductions (CERs) can lead to a successful and viable business model that promotes increased private sector participation, and share lessons for replication.
• To influence future carbon market mechanisms so that low income countries, and especially least developed ones, receive a greater and fairer share of carbon finance, resulting in high development benefits that avoid carbon emissions.
• To support low income countries in developing standardized baselines and establishing “suppressed demand” accounting standards in key areas such as rural electrification, household energy access and energy efficiency.
• To contribute proposals to further improve and extend the scope of the Clean Development Mechanism (CDM) for use by least developed countries (LDCs), in particular for Programmes of Activities (POA).

Ci-Dev comprises two reinforcing components, the Readiness Fund and the Carbon Fund.

• The Readiness Fund finances capacity building activities in least developed countries to develop standardized baselines and technical assistance for energy access programs. It supports the development of new methodologies and proposals for simplified CDM rules, and dissemination of results. Where needed, it also provides technical assistance to the projects and programs supported by the Carbon Fund.
• The Carbon Fund provides performance-based payments to low-carbon investments in the form of purchases of certified carbon emission reductions.