Publication: Contracting Emissions Reductions from Natural Climate Solutions: The Experience of the BioCarbon Fund in Contracting Emissions Reductions Purchase Agreements (ERPAs)
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2025-08-04
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2025-08-04
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As the international community seeks to address climate change, it is widely understood that there is an enormous financing gap for climate mitigation and adaptation. Trillions of dollars are needed annually by 2030 to fund the climate transition, while roughly only 300 billion dollars is currently being committed. This resource shares the unique experience of the ISFL to date in contracting for these ER transactions for jurisdictional land use programs. While several other World Bank trust funds have designed and negotiated ERPAs, and the ISFL itself builds on the experience of the Forest Carbon Partnership Facility (FCPF), the similarities and differences between them are beyond the scope of this report. Using the example of the ISFL program, this resource explains how ERPAs are created, how quality and integrity are maintained, and what terms and conditions are negotiated and documented. It shares insights into what parties may need to consider when designing and preparing to negotiate an ERPA or similar agreement. While the focus is on principles and processes used in ISFL ERPAs, the content covered is relevant to any entity, both within and outside the World Bank, looking to engage in the purchase or sale of carbon credits from jurisdictional land use programs.
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“World Bank. 2025. Contracting Emissions Reductions from Natural Climate Solutions: The Experience of the BioCarbon Fund in Contracting Emissions Reductions Purchase Agreements (ERPAs). © World Bank. http://hdl.handle.net/10986/43539 License: CC BY-NC 3.0 IGO.”
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