Today is Monday, 01 July 2024.
TCAF stands for Transformative Carbon Asset Facility, a World Bank trust fund that supports countries’ efforts to implement market-based carbon pricing, aligned with Article 6 of the Paris Agreement. It also helps private sector investments in low-carbon technologies.
TCAF supports three types of programs through results-based payments for verified emissions reductions:
Policy-Based
Sector-Based
Jurisdictional
Specifically, the World Bank rewarded Uzbekistan for successfully cutting 500,000 tons of carbon emissions under the iCRAFT Project, a policy-based crediting program.
iCRAFT stands for the Innovative Carbon Resource Application for Energy Transition, the first international carbon market initiative in Uzbekistan and Central Asia under the Paris Agreement. It will help to generate carbon emission reduction credits that can be sold in international carbon markets.
In that sense, the government of Uzbekistan launched political reforms, cutting subsidies, gradually adjusting energy tariffs to real costs, and with a commitment to use part of the funds to protect vulnerable families in this transition. Funds from the project will also support the reform and transition of the country's energy sector.
As required in the project, the first annual verification of emission reductions and implementation was conducted by the independent third-party company AENOR, Spanish Association for Standardization and Certification, as indicated in this interesting 18-pages March 2024 “Management Letter And Aide-Memoire”.
Uzbekistan plans to reduce 60 million tonnes of CO2, with iCRAFT purchasing approximately 2.5 million of carbon credits and the remainder destined for sale on international markets.
Click at the image below to read more about all this at World Bank’s press release.
If further interested, click here for the complete list of documents related to this project in Uzbekistan.
