Blog » Black Carbon Finance Study Group
The Black Carbon Finance Study Group report finds that existing funds are already in a position to finance businesses, activities, technologies, and policies that will contribute to cutting black carbon emissions, and that several black carbon-rich sectors are sufficiently mature to absorb finance. The report also outlines key strategies and steps needed to scale up black carbon finance over time.
The report recommends funding the development of black carbon performance standards so that investors can screen potential projects to ensure that activities are reducing emissions and achieving climate and health benefits. However, practical steps can be taken immediately in the diesel transportation and residential cooking sectors. In the transportation sector, the suggestion is for development finance institutions to use concessional loans and grants to incentivize diesel vehicle owners to transition to lower-soot or soot-free engines. Results-based finance instruments can be used to incentivize the adoption and continued maintenance of diesel abatement technology. In practice, funds could flow through designated national authorities to municipalities, private fleet owners, and other beneficiaries. The report also identified four additional black carbon-rich sectors that offer strong potential for impact and action in the near to medium term. These include: Brick kiln efficiency and the adoption of alternative materials, replacing kerosene lanterns, adopting alternative of agricultural residues to avert burning, and reducing emissions from oil and gas flaring.
Over the longer term the report recommends cross-cutting strategies like including black carbon in development finance investment decision making. Such a step could see development banks offer sovereign borrowers more concessional loan terms if they choose to follow a low carbon pathway, or offer loans and grants to finance transformation of a particular sector.
Hello Yekbun G,
Thank you for sharing Black Carbon Finance Study Group document. We work as social entrepreneur in India. Our reduction strategies includes reduction of Energy intensity in Industries, Household & Service sectors. We have few projects under way where we target a zero carbon organisation in specified time. We work on challenge based projects where Intensity of Energy of a sector is reduced by step by step mitigating actions. Currently we focus on eliminating Wood and Kerosene from household cooking. We propose Solar cooking for 200 days supported by Biogas from waste generated. We need your expertise in replacing boilers with higher energy absorption. Though most of industries have started working towards savings and energy reduction, we propose to use solar/ steam fed boilers for 250 days supported by conventional source of energy.