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This paper proposes an innovative financing mechanism, known as the
Low Carbon Development Facility (LCDF) that would bring additional
investment financing at concessional rates to unlock low carbon
development projects in non-Annex 1 countries, increasing project-based
emissions avoidance in these countries.
The LCDF could be a modality of the Copenhagen Green Climate Fund to
implement the financial pledges made by Annex 1 countries as a result
of Copenhagen and post-COP15 negotiations to support projects,
programs, policies and/or other activities in developing countries
related to NAMAs. LCDF will not substitute the Global Environment
Facility (GEF) and the Clean Technology Fund (CTF) and would rather
support the innovative projects pioneered by these instruments.
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