Commonwealth Bank joins World Bank Community Development Carbon Fund

The Community Development Carbon Fund (CDCF) was launched by James Wolfensohn, President of the World Bank, at the World Summit of Sustainable Development in Johannesburg on 2 September.

The Commonwealth Bank of Australia has signed a non binding Memorandum of Understanding to participate in the consultative group which will investigate the design and operation of the new Fund.

Michael Ullmer, Group Executive, Institutional and Business Services, said, "The Commonwealth Bank is the only bank in the Asia Pacific region to join the CDCF, which will provide carbon finance to small-scale projects in small and least developed countries. The CDCF will provide resources to projects that contribute to sustainable development in the host country. It is hoped that some communities in South East Asia will receive particular attention. "

"Commitments to the Fund are envisaged to be US$2.5million for companies and US$5 million for countries up to a total of US$100million. Commitments will only be drawn down in line with funding requirements. It is hoped that the CDCF will receive sufficient commitments to be established by January 2003," Mr Ullmer added.

The CDCF may support projects such as renewable energy, clean transport, agricultural waste management and agro-forestry. Projects will measurably benefit the poorer rural communities in developing countries, who are disadvantaged when competing for carbon finance for small-scale projects.