Future Carbon Fund

ADB established the Future Carbon Fund (FCF) in 2008 to enhance the competitiveness of low-carbon technologies and contribute to reducing greenhouse gas emissions in Asia and the Pacific. The fund aims to provide carbon finance by pre-purchasing certified emission reductions generated by Clean Development Mechanism (CDM) projects in 2013–2020. Established as a trust fund, the FCF has six contributing participants that have collectively committed $115 million. The FCF renders bridging and enabling support to a portfolio of 33 high-quality mitigation projects. This assumes all the more significance under the prevailing transitionary phase for the international carbon market. FCF projects are implementing a spectrum of renewable energy, transport, waste management, and energy efficiency technologies in 10 developing member countries. These include least-developed countries and small island developing states where implementing CDM projects had historically been difficult and project opportunities were few. In the renewable energy sector alone, the FCF is providing carbon finance to support the generation of 1.1 gigawatts of renewable energy. The fund has completed operations in 2023 and is expected to be closed in 2024.