2ND TRACKING WORKING GROUP OF THE
PARIS AGREEMENTARTICLE 6 IMPLEMENTATION PARTNERSHIP
21 NOVEMBER 2023

World Bank Climate Warehouse Program Under PMIF:SCALINGTHE VOLUNTARYCARBON
MARKET
Building an End-to-End
Digital Ecosystem for Carbon
Markets
Pillar 1: Piloting and Developing Global
Public Goods

Pillar 2: Global Knowledge and CapacityBuilding

Making digital infrastructure for carbon markets
available to client countries through development,
testing and prototyping of innovative digital
infrastructure for carbon markets.

Support countries and jurisdictions toin implementation of digital infrastructure for carbonmarkets needed for GHG mitigation and NDC
implementation​.

• Monitoring, Reviewing and Verification (MRV)systems.
• National Carbon Registries.
• Tokenization instruments.
• Climate Action Data Trust (CAD Trust).
 Digital for Climate (D4C) Working Group. Collaboration with
EBRD, UNDP, UNFCCC, IETA, ESA for a modular and interoperable
end-to-end digital ecosystem for carbon markets.

• Develop knowledge base on digital infrastructure andfacilitate information exchange through technicaldiscussions and knowledge dissemination​• Assist countries to identify and implement best practice
approaches and, where relevant, achieve compatibility indesign to support the development and linking of digital
infrastructure for carbon markets• Encourage international and national cooperation,and inform the domestic and global policy discussions on
GHG mitigation by sharing lessons learned and providing aplatform for collective innovation on digital infrastructure
products

Digital Methodology

Digitalization of Methodologies: smart contract toward the digitization of the mitigation activity cycle

Building End-to-End Digital Solutions to Streamline Carbon Asset Development & Trading
Physical Layer(MRV)

Database Layer

Registry Layer(MRV)

Program Level MRV
Equipment
Sensors
MetersSatellite

CentralizedDatabase
optionally to
National MRV
SystemIndependentStandards

Countryregistries

UNFCCCregistries

WB registries

Metadata Layer

Service Layer

Compliance
Reporting
Benchmarking
Due Diligence
Ratings

Transaction
Layer

Tokenization
EngineForecasting

Digital Carbon Assets

Facility Level
MRV

Exchange A
Exchange B
Exchange X

Verificationof units

Account Holder
Wallets

DigitalAsset
StatusTracking

Digital Carbon Assets

EntityDue Diligence

Jurisdictional
Regulation

Reporting formarkets, UNFCCC

Digital workflow

Project preparation from document development, approval, validation toregistration in applicable standards3

Product Line – Available Opensource Carbon Markets Infrastructure

1. Data Management System (MRV for article 6) – system
to track and manage various data types and data flows
related to carbon units and emissions reductions,ensuring that they are accurately measured, reported,and verified.

World Bank offers a data management system (DMS) that
supports the data collection and aggregation at project,sector and national level.

2. National Carbon Registry – system to track and record
carbon credits and facilitate transactions of these credits.

Digital for Climate (D4C) offers three opensource
registries: WB Core Registry, WB Enhanced Registry,UNDP Registry.

3. Tokenization Engine – system to issue digital carbon
assets and conduct transactions through credentialed
wallet systems.

World Bank designed a tokenization engine, which waspiloted by market participants. It is currently available
opensource in the D4C page.

4. Climate Action Data Trust – global platform that
aggregates and harmonizes carbon market data andconnects registries across the world

World Bank supports the onboarding of country national
registries to Climate Action Data Trust.

Multiple pathways are
emerging for countries to meettheir Article 6 reportingrequirements• Countries are considering different market
infrastructure options for reporting andtracking to support their participation. These
range from simple to complex configurations
depending on factors such as level of carbon
market activities, available resources, and plans
to implement domestic carbon pricinginstruments.

Different
options andchoices to make

Some earlyobservations• Countries with cooperative approaches (under A6.2)
are ahead with plans to establish the infrastructure
systems• Lack of understanding on what the UNFCCC registry
supports and the need for having a national levelregistry• Some countries are ahead of having systems before
they develop the policy framework to govern them
• Countries with domestic carbon pricing or in theprocess of having one are exploring options to have
one that serves both; but influenced by thegovernance and resources

For more information, please reach out to:Hari Gadde (hgadde@worldbank.org)
Gemma Torras Vives (gtorrasvives@worldbank.org)
https://pmiclimate.org

Climate Warehouse- Website: https://www.theclimatewarehouse.org/work/climate-warehouse- Online Library: https://wbg.edcast.com/channel/23316
Climate Action Data Trust- Website: https://climateactiondata.org/- Launch Video: https://olc.worldbank.org/content/introduction-climate-action-datatrust