The World Bank on Tuesday announced a new multi-partner fund that will pool funding from the global community for projects aimed at reducing greenhouse gas emissions.

This is contained in a statement obtained from the World Bank website on Tuesday in Abuja by the News Agency of Nigeria (NAN).

NAN reports that the announcement was made at COP27 – Conference of the Parties of the United Nations Framework Convention on Climate Change, in Sharm El-Sheikh, Egypt.

According to the statement, funds would also be pooled from donor countries, the private sector and foundations, for scalable pathways to greenhouse gas emission reduction.

It said the Scaling Climate Action by Lowering Emissions (SCALE) partnership would provide grants for verifiable emissions reductions and expand the funding sources for global public goods.

The statement quoted President of the World Bank Group, David Malpass, as saying “climate finance needs major new mechanisms that pool funding from the global community to accomplish actual reductions in greenhouse gas emissions across the developing world.

“SCALE offers a key non-fragmented avenue for the global community to take action on climate change.”

Malpass said the verifiable emission reductions created by SCALE and similar mechanisms would also be an important step toward building effective carbon credit markets.

According to the statement, SCALE will deploy Results-Based Climate Finance where countries receive grant payments for achieving pre-agreed, verifiable results, drawing on 20 years of World Bank Group experience in this area.

It said SCALE would support countries to build a track record of generating emission reductions from impactful programmes and policies that they could apply toward their national emission reduction targets.

The statement said SCALE would also yield excess credits that could be offered in carbon markets with the potential to unlock additional private-sector funding.

“SCALE will pool public and private resources to channel additional funding to middle- and low-income countries’ emission reduction programmes.

“SCALE would also help bridge the gap between the supply of and demand for high-quality emission reduction credits by supporting large-scale climate investments.

“It would also help countries develop high integrity credits and enhance their access to international carbon markets.”

The statement said social inclusion was embedded in the design of all SCALE programmes.

“An associated fund within the SCALE umbrella called Enabling Access to Benefits while Lowering Emissions (EnABLE), enhances the inclusion of marginalised communities and indigenous peoples in programmes under the partnership through specially designed benefit sharing arrangements.”