The Terra Viva Grants Directory develops and manages information about grants for agriculture, energy, environment, and natural resources in the world's developing countries.

Future of the Carbon Market

FutureCarbonMarketFunding for start-up financing and capacity building to promote a program approach in the international carbon market

Principal Office: Germany


The Foundation “Future of the Carbon Market” (Stiftung Zukunft des Kohlenstoffmarktes) promotes a market-based approach at a program level to reduce carbon emissions in developing countries.

The Foundation aims to go beyond the level of individual carbon projects to reach entire economic sectors via a program approach. The program approach relies on start-up finance generated by the sale of tradable emissions certificates, combined with national policies and incentives favorable to emissions reductions. In the view of the Foundation, this program approach is the future of the carbon market (i.e., explaining the Foundation’s name).

Grant Programs for Agriculture, Energy, Environment, Natural Resources

Program Approach in Carbon Markets. The Foundation defines three funding priorities:

Start-Up Finance –The Foundation supports pre-financing needs of technologies that contribute to reduced emissions. Examples of pre-financing are investment subsidies and/or price discounts on solar water heaters, efficient cook stoves, energy-saving light bulbs, etc. Pre-financing is required until the sale of verified emission reductions enables these technologies to be self-financing. The maximum start-up support is €2 million.

Raising the Profile of the Program Approach — This refers to educating policy makers, investors, and industries about the advantages of the program approach through workshops, conferences, and information materials.

Capacity Building of Governments — The Foundation supports the efforts of national governments to integrate market-based programs for carbon reductions into climate policies.

The Foundation favors programs in an advanced state of planning and preparation; that are carried out in least-developed countries and/or poor regions vulnerable to climate change; that are integrated into the country’s climate policy; that will positively influence the development of the future carbon market; and that meet other criteria.

About the program

APPLICATION: The Foundation posts funding guidelines and application forms, one for funding through the Clean Development Mechanism (CDM) and another for funding external to the CDM.

The Foundation announces calls for proposals on their website.

About how to apply

Geographical Distribution of Grant Activities in Developing Countries



The Foundation’s website is available in German and English.

The Foundation was established as a complement to the International Climate Initiative by Germany’s Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) and the German Development Bank (KfW).

The Foundation offers an electronic form for contact information.

Last Profile Review

November 2019