The World Bank has mobilized a fund to demonstrate projects that sequester or conserve carbon in forest and agro-ecosystems. The Fund, a public/private initiative administered by the World Bank, aims to deliver cost-effective emission reductions, while promoting biodiversity conservation and poverty alleviation. The Fund is composed of two Tranches: Tranche One started operations in May 2004, has a total capital of $53.8 million; Tranche Two was operationalized in March 2007 and has a total capital of$ 38.1 million. Both Tranches are closed to new fund participation.

The BioCarbon Fund can consider purchasing carbon from a variety of land use and forestry projects; the portfolio includes Afforestation and Reforestation, Reducing Emissions from Deforestation and Degradation and is exploring innovative approaches to agricultural carbon.

NOTICE: Private or public sector entities interested in participating in the BioCarbon Fund should contact Ms. Ellysar Baroudy (ebaroudy@worldbank.org). The project portfolio of Tranche One is now identified and no new project proposals will be received. However,the call for project proposals for Tranche Two is currently open. Proponents interested in submitting a LULUCF project proposal to the BioCarbon Fund should submit a Project Idea Note via the website (http://carbonfinance.org/Router.cfm?Page=SubmitProj&ItemID=24683). The BioCarbon Fund's capacity to respond is conditioned upon available capital. Please also note that priority will be given to projects from the World Bank's project portfolio or that fit in the World Bank's country dialogue and have demonstration value and replication potential.