Transformative Carbon Asset Facility (TCAF) is an international finance facility piloting innovative, results-based carbon market mechanism under Article 6 of Paris Climate Change agreement. TCAF supports developing countries in planning, implementing, and scaling up their Nationally Determined Contributions (NDCs) to accelerate the transition to low-carbon economies. As well, TCAF helps shape international carbon markets for the post-Kyoto era.
What does TCAF do?
Piloting results-based finance for greater impact
Supporting climate mitigation ambitions in developing countries
Helping shape international carbon markets for post-Kyoto era
On a country level
- TCAF helps developing countries implement market-based carbon pricing and sector-wide mitigation measures
- TCAF leverages public finance to create favorable conditions for private sector investment in low-carbon technologies, provide blueprints for efficient and low-cost mitigation, and achieve lasting transformational impact
On the international arena
- TCAF’s informs the international process to develop standards and agreements for future carbon crediting instruments and transfer of carbon credits
- TCAF tests various methods to transparently transfer “mitigation outcomes” between parties and to provide stringent accounting and transparency, ensuring the environmental integrity of these assets.