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Capacity Building for Market Instruments

PMR

The Partnership for Market Readiness, bringing together developed and developing countries, will provide a platform for sharing experience, fostering new and innovative market instruments, harnessing financial flows, and building market readiness capacity for countries to scale up their climate change mitigation efforts.

As the world seeks to enhance mitigation efforts, a growing number of developing countries have adopted national climate action plans aligned with their development strategies.  Many of these countries are in the process of putting in place a portfolio of instruments that encourage investment towards lower carbon alternatives.  Market instruments – e.g., the Clean Development Mechanism, Joint Implementation and domestic emissions trading – have demonstrated their ability to drive the financial flows required to reduce emissions relative to business-as-usual trajectories cost-effectively.

Going forward the challenge is how to scale up carbon market mechanisms for them to gain in scope and efficiency.  To meet this challenge, opportunities need to be created: for a technical forum to develop new market instruments; for building capacity in-country to get ready for them; and for piloting and exchanging experience and lessons learned.

The Partnership for Market Readiness (PMR) is intended to achieve these objectives by bringing together interested countries, international organizations and private sector entities. It will be country-led and build on individual countries’ mitigation priorities and their development of market instruments.

The PMR aims to cover a range of market instruments, from domestic schemes such as emissions trading for carbon or its proxies (e.g., renewable energy and energy efficiency certificates) to international market instruments such as a reformed Clean Development Mechanism as well as any new scaled-up crediting mechanisms.  The PMR will provide capacity building for “readiness components” that are essential to any form of market instruments, including setting up domestic systems for monitoring, reporting and verification, enhancing institutional capacity, and establishing policy and regulatory frameworks.

The Partnership is aiming for a total capitalization of $100 million and is expected to become operational early 2011.

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For more information on the PMR, please contact:
Ms. Xueman Wang, Senior Counsel, Carbon Finance Unit, World Bank
Email: xwang5@worldbank.org

Ms. Martina Bosi, Senior Carbon Finance Specialist, Carbon Finance Unit, World Bank
Email: mbosi@worldbank.org

For questions by the media, please contact:
Ms. Isabel Hagbrink, Senior Communications Officer, Carbon Finance Unit
Ph: + 1 202 458 0422
Email: ihagbrink@worldbank.org

Related News:

Blogs: 

Launch of the Partnership for Market Readiness Event at COP 16:

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