Regional Carbon
Markets Engagements
World Bank
September 2023

Context• The Paris Agreement and country NDCs set the direction for increasing climate action in countries, requiring
significant financing and capacity building needs.
• Carbon markets and carbon pricing offer the opportunity to increase the resources mobilized from theprivate sector, reduce the burden of NDC implementation and increase global ambition.

• Several countries in different regions, notably Africa, Pacific and Caribbean, have shown interest in support
from the World Bank managed Partnership for Market Implementation Facility (PMIF) and in engaging oncarbon pricing and carbon markets. In addition, regional entities such as the West African and Southern
African Power Pools have also shown interest.
• A programmatic engagement is proposed to provide capacity building, knowledge sharing, and piloting at
the country level and disseminate lessons through regional entities.
• The objective of the program is to build capacity, harmonize carbon markets infrastructure, and facilitate theadoption of innovative tools and approaches.
• The program considers the specific needs of the regions and countries engaged and utilizes the World Bank
supported tools, systems and frameworks to maximize the impact and optimize resources.

Partnership for Market Implementation• PMI, launched at COP25 Madrid, builds on a decade of carbon pricing readiness experience gained from thePMR. PMR supported readiness roadmaps for 23 countries, built the capacity of over 3000 technicalprofessionals, and produced and disseminated a vast body of knowledge on carbon pricing and markets, allof which acts as a foundation for PMI.
• PMI Objectives:o Support participant countries/jurisdictions in the implementation of carbon pricing instruments needed
for GHG mitigation and NDC implementationo Develop the knowledge base on carbon pricing instruments and facilitate information exchange
through technical discussions and knowledge disseminationo Assist countries to identify and implement best practice approaches and, where relevant, achieve
compatibility in design to support the development and linking of international carbon marketso Encourage international and national cooperation, and inform the domestic and global policy
discussions on GHG mitigation by sharing lessons learned and providing a platform for collective
innovation on carbon pricing instruments

3Partnership for Market Implementation
Window 1

Window 2

Window 3

Implementation Support

Readiness Roadmaps

Targeted Support• Target: Countries withdemonstrated politicalcommitment to carbon pricing or
an existing carbon pricing system• Support package: Strengthening
domestic implementation capacity,strengthening legislative and policy
review functions, scaling andexpanding to new sectors, etc.

• Target: New countries committing
to implement a carbon pricing
instrument• Support Package: Early-stage
activities to determine which
instrument to adopt, build
stakeholder support for policy
infrastructure, assess co-benefits.

• Target: Regional, subnational
jurisdictions• Support Package: Harmonization ofcarbon pricing infrastructure,
adoption of innovative tools,
development of transparent
accounting procedures, etc.

Support under the PMI Regional Engagement
REGIONAL

Regional
Institutions
Leverage the regional
entities like UNFCCC RCCs,
West African and East
African Alliances for Carbon
Markets and Climate
Finance for coordination.

NATIONAL

Needs
Assessment
Use tools such as theCarbon Pricing Assessment
Tool, CPI Guidebook, andMitigation Action
Assessment Protocol toassess the role of carbon
pricing and markets.

Knowledgesharing
Sharing lessons andexperience from country
experiences, and capacity
building workshops on
carbon pricing to benefit all
the member states in theregion.

Infrastructure
SupportDeveloping options forharmonized MRV at theregional level; pilot dMRV
and assist with registrysystems.

Capacity
Building

Piloting

Capacity building
workshops and facilitated ecourses building on theknowledge base developed
under the Partnership forMarket Readiness (PMR).

Inputs to piloting formonitoring, reporting, andverification (MRV) tofacilitate the developmentof information systems forcarbon markets andcustomize registry systems

InternationalCarbon
Markets

Elements of an institutionalframework for participation
in international markets
that can be coordinated at
the regional level to reduce
the required level of effort
at the country level.

InternationalCarbon
Markets

Inputs for developing adomestic institutionalframework for participation
in international carbon
markets to build familiarityand practical experience
with carbon pricing.

International Transfer Readiness Support
Two Groups of KI
Party’s Readiness

Double counting
prevention• Double claiming, double
issuance, double registrationand double use

MO alignmentwith NDCs• Actions should be taken toensure alignment with Issuingand Using Parties’ NDCs

Environmentalintegrity• Does not lead to an overall
increase in global GHG
emissions and that ITMOs
are real, permanent, andverifiable.

Unit Transfer Authorization• As per Article 13’s “Enhanced
Transparency Framework”

NDC CompletenessTransparency

assesses country's institutional
and infrastructure readiness in
preparation to future
implementation of mitigation
activities intended forinternational transfer.
Article 6 Implementationassesses specific infrastructure
and processes in place for
Article 6 units transfer
implementation activities.

Harmonizing MRV and supporting with registrysystems
Support on MRV and Registry Systems

Support countries incoordination withthe Digital for
Climate (D4C)
members (WB,EBRD, UNDP,UNFCCC, ESA, IETA)

Support for
Customization ofsystems

Capacity building,training,
technical/advisory
supportInnovative MRVpractices &Resource material
development

Collaboration / Partnership with other agencies / initiatives

Exploring options for harmonized MRV at the regional level

Piloting digital MRV
Knowledge sharing on MRV practices
The initiative will be coordinated through the Partnership for Market Implementation(https://pmiclimate.org/)

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REGIONAL PROGRAM – SUB-SAHARAN AFRICA
Policy-Level Capacity Building

Engagement with regional institutions that bring together relevant policymakers/ministries suchas West and East African Alliances for Carbon Markets and Climate Finance, UNFCCC RCCs, etc.

Project-Level Capacity Building

Engagement with regional entities responsible for sectoral coordination, such as
the West African and Southern African Power Pools

WEST AFRICA▪ Joint workshop with the West African Power Pool (WAPP) in
Lome from April 24 – 27 in English and French.
•Participants: 19 participants from WAPP’s member utilities,
4 participants from the WAPP Secretariat•
Countries represented: Benin, Burkina Faso, Cote d'Ivoire,Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria,Senegal, Sierra Leone, and Togo•
Speakers: West African Alliance, Ghana EPA, UNFCCC RCC
Lome, World Bank, consulting firm (Promethium)•Format: In person with separate French and English sessions•Topics covered: Basics of carbon markets through practicalexamples; regional grid emission
factor; MRV approaches including digitization; lessons
learned from the implementation of the Standardized
Crediting Framework in Senegal and Ghana’s experience
with the development of carbon projects▪

Virtual workshop (scheduled for May 22–25)• Participants: WAPP utilities and Ministries of Environment(through RCC Lome and West African Alliance)• Topics: Institutional arrangements for accessing carbon
markets, opportunities for regional harmonization

OTHER REGIONS• RFP issued for CB initiative with Southern African Power
Pool (SAPP)• Partnership details developed with RCC- UNFCCC andSAPPNATIONAL TRACK• Needs have been identified in Rwanda, Uganda, Namibiaand working with clients to develop specific activities

For more information, please visit
www.pmiclimate.org

For questions or comments, please contact:
Harikumar Gadde: hgadde@worldbank.org

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