Meeting development objectives with carbon revenues
The MDG Carbon Facility provides services to a wide range of project types. These projects, of small to large scales, are viable with carbon revenues and are appropriate to the development objectives of the host country. Project types include: renewable energy, energy efficiency, fuel switching, agricultural waste management, biomass and biogas usage, and capture of fugitive emissions from landfills and industrial sources.
In order to achieve MDG objectives, and to support the varied nature of carbon finance, the Facility is organized into distinct, yet related, thematic areas:
  Project-based carbon finance. This is the “conventional” carbon finance window, where the Facility will target LDC project opportunities. These projects are taken through the CDM/JI mechanisms and will have a particular focus on programmatic approaches.
Sectoral crediting and trading mechanisms. The is an “emerging” carbon finance modality, in which financing can be applied across an entire industrial sector (for example, steel, or cement product, or aviation).
Unaddressed sources and sinks. This thematic window is for the development and implementation of new carbon finance instruments to mitigate previously unaddressed emissions sources (such as ozone-depleting substances) or to credit new carbon sinks that absorb emissions.
Due to the cross-cutting nature of climate change interventions, some projects will bridge several sectors.
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MDG Carbon Facility project types |
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Renewable energy |
Energy efficiency |
Cleaner energy |
Waste to energy |
Fugitive emission reductions |
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Grid-connected electricity and/or heat: wind, solar, hydro, biomass |
Building efficiencies - new and retrofit |
Co-firing of biomass/wastes |
Waste heat capture and use from industrial processes |
Landfill gas capture and flare or productive use |
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Off-grid electricity: solar PV , micro hydro |
Industrial energy efficiency, including cogeneration |
Fuel switching to cleaner fossil fuels: coal to gas, diesel to LPG |
Process changes to reduce energy content of product |
Animal waste digestion gas capture and flare or productive use |
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Refurbishment/upgrade of existing renewable energy plants, notably hydropower |
Energy efficient installations in programmatic approach – appliances, stoves |
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Biodigestors to produce usable methane as fuel |
Avoidance of industrial fugitive emissions from natural gas pipelines/ installations |
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Supply side energy efficiency improvements |
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Use of landfill gas for electricity generation |
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Refrigeration/chiller efficiency involving CFC replacement technologies |
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Clean energy and biogas projects can help ease the domestic burden on women and girls, facilitating the attainment of Millennium Development Goal 3: Promote gender equality and empower women.