The Sky is Not the Limit: - Carbon Trade Watch

‘renewable’ projects.7 Although, withinthat definition of ‘renewable’ a greatvariety of projects can qualify. As aresult, the PCF counts energyefficiency in the Czech Republic,waste management in Latvia,aforestation in Romania, wasteincineration in Mauritius, landfill gasextraction in South Africa and soilconservation in Moldou as ‘renewable’.While environmental groups such asGreenpeace define ‘renewable’ energystrictly in terms of solar and windpower, the PCF and its source, theKyoto Protocol, include energy thatstretches this definition to the limit. 8Another prototype fund that came outof this formula, the CommunityDevelopment Carbon Fund (CDCF),whose slogan is “carbon with a humanface,” was launched at the WorldSummit on Sustainable Development(WSSD) in Johannesburg 2002, with acapitalisation of US $100 million. It isintended to fund small-scalerenewable energy and energyefficiency projects and is a joint projectwith the industry lobby group, theInternational Emissions TradingAssociation (IETA). 10The Bio Carbon Fund, launched in thebeginning of 2002, is intended tosupport carbon sequestration projectssuch as forest sinks and reduceemissions from agricultural practices. 11Environmentalists are concerned thatthe Bank is pushing controversialforest sinks projects despite a lack ofscientific consensus on their ability toabsorb carbon, and mass oppositionfrom community groups andindigenous peoples worldwide.wind power 5geothermal 1afforestation 2biomass 2hydropower 3Meanwhile, the corporate sector istaking heart. A World Bank studyfound that after the launch of the BioCarbon Fund carbon trades in the firstsix months of 2002 by companiesdoubled in volume from the previousyear. 12 The Bank estimates thatcarbon trades increased by 400 percent in 2002 as a result of its highprofile financial backing of thesystem. 13 By creating these funds, theBank together with the partnercorporations and governments areestablishing norms and standardswhich will have an enormous influenceon the rules governing theseprojects. 14Type of projectNumberwaste management 3energy efficiency 528