The FCPF Carbon Fund Methodological Framework was adopted by Carbon Fund Participants in December 2013. The framework provides a global standard for REDD+ transactions at scale, and guides the piloting of results-based carbon finance transactions through the FCPF Carbon Fund.
In 2014, Carbon Fund Participants indicated a preference for fixed pricing under current conditions and a willingness to pay up to $5/tCO2e, while recognizing that the ultimate price is subject to negotiations at the time of Emission Reductions Payment Agreement (ERPA) negotiations.
Cost Assessment Tool
The FCPF is working with several countries, especially Carbon Fund Participants, to perform analysis and planning for the financing of Carbon Fund Emission Reductions Programs using the FCPF’s previously developed cost assessment tools. Such an upstream analysis has allowed countries to start structuring ERPs, and to align various streams of finance, including the resources provided through the FCPF Readiness Fund, other investment finance, and results-based finance through the Carbon Fund.
The Emission Reductions Payment Agreement (ERPA) General Conditions were adopted at the FCPF’s 18th Participants Committee Meeting held in November 2014. The general conditions build on the criteria and indicators specified in the FCPF’s Methodological Framework and provide, among others, for the general legal rules and procedures that are expected to be followed during Emission Reductions Program implementation. They further provide a set of non-negotiable general rules and procedures that apply to each carbon transaction, while the ERPA covers the negotiable commercial terms of such transactions.
FAQ for ERPA General Conditions (English)
Transfer of title
The FCPF Carbon Fund Methodological Framework requires that country participants demonstrate their ability to transfer title to Emission Reductions. The FCPF is developing guidance on the type of evidence country participants should submit to demonstrate their ability to transfer title to Emission Reductions.