The Future Carbon Fund (FCF) was established in July 2008 when the commitment period under the Kyoto Protocol (international framework for reducing greenhouse gas emissions and the trading of carbon credits) was due to expire in December 2012, creating a cloud of uncertainty over international carbon markets and their contribution for the future investments.

The FCF provided much-needed certainty through long-term fixed-price forward contracts and up-front payments at the outset of a project for carbon credits to be generated after 2012, thus helping reduce the initial heavy capital constraints involved in projects and stimulate new investments.

During its 15 years of operations, the FCF successfully disbursed $51.0 million in carbon finance. It cofinanced 33 climate mitigation projects in 10 ADB developing member countries across Asia and the Pacific. The FCF contributed to avoiding emissions of 8.32 million tons of carbon dioxide equivalent. The successful operations of the FCF provided proof of concept on the role of a clear price signal and the effectiveness of carbon finance for incentivizing investments in low-carbon technologies and solutions.

The projects supported by the FCF not only mitigated greenhouse gas emissions but also delivered a host of social, environmental, and economic co-benefits for communities, all contributing to sustainable development in the region. FCF-supported projects contributed toward all 17 of the United Nations Sustainable Development Goals, including potentially 6.22 million people gaining access to clean, reliable, and affordable electricity; nearly 788,000 people gaining access to basic resources and services; and over 55,000 people gaining access to health systems and facilities.

The fund has completed operations in 2023 and financially closed in 2024.