This paper proposes an innovative financing mechanism, known as the
Low Carbon Development Facility (LCDF) that would bring additional
investment financing at concessional rates to unlock low carbon
development projects in non-Annex 1 countries, increasing
project-based emissions avoidance in these countries. The LCDF
could be a modality of the Copenhagen Green Climate Fund to
implement the financial pledges made by Annex 1 countries as a
result of Copenhagen and post-COP15 negotiations to support
projects, programs, policies and/or other activities in developing
countries related to NAMAs. LCDF will not substitute the Global
Environment Facility (GEF) and the Clean Technology Fund (CTF) and
would rather support the innovative projects pioneered by these
instruments.
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