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Partnerships for climate protection |
In 2002, BASF became the first German company to join the World Bank’s climate fund. The Community Development Carbon Fund (CDCF) invests in projects in developing countries that reduce greenhouse gas emissions and simultaneously play a role in development. BASF joined the World Bank’s Community Development Carbon Fund (CDCF) with a commitment of $2.5 million.
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CDCF projects are recognized as clean development mechanisms (CDM) under the Kyoto Protocol. Participation in these projects allows companies to fulfill some of their CO2 reduction requirements via projects in developing countries. In return, participants in the fund receive certified greenhouse gas emissions rights that will be accepted in 2005 as part of the E.U. emissions trading system.
One of the first projects started in Honduras in 2004. In the city of La Esperanza a run-of-river power plant is being built to provide a reliable supply of electricity to some 40,000 people in the town and surrounding communities. This will reduce CO2 emissions by 720,000 metric tons of CO2 equivalents in 21 years because fossil fuels will be replaced or avoided. Furthermore, the project will also provide a boost for the local economy since small companies can now operate electrical devices that could not be used previously because of the irregular power supply. In addition, the hydro power plant will provide regular jobs for about 30 people.
Another project currently being established in Ethiopia involves the reforestation of 15,500 hectares of forest. Thus, water quality for people will be improved and soil erosion ought to be avoided. Furthermore the goal is to create greater biodiversity and more jobs. Another key advantage is that there will be approximately 5 million metric tons less CO2 in the atmosphere over the next 10 years.
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