A country may also want to consider the use of innovative financing
mechanisms to provide capital for an NCF. In this case, an NCF is
designed to collect resources from non-traditional sources of finance
such as levies on oil or coal production, fees from polluting compa-
nies or proceeds from carbon markets. Revenues from these sources
are collected by an NCF and then directed toward the programmes
and projects that fulfill the goals of the NCF. For example, the Brazil
National Fund on Climate Change collects funds from revenue from
the oil production industry and channels them toward climate
change mitigation and adaptation activities.
Innovative mechanisms require that complementary structures be
put in place within the NCF to ensure the efficient collection and
delivery of funds. NCFs should have the ability to manage and
account for funds coming from these non-traditional sources.
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