Supporting the growth ofcarbon markets in the EBRD
region0 1 September 2023

EBRD SUPPORTS THE GREEN TRANSITION IN 36 ECONOMIESFINANCEDCOMMITTEDMOBILISED

2,700+€50 billion€1 billionof green financing since2006

of estimated GET AMI in2022

REDUCING

SAVINGAVOIDING

124 million

468 million

3.7 million

tonnes of CO2 annually
since 2006

m3 of water
annually since 2013

tonnes of material use
annually since 2013

green projects since 2006

OFFICIAL USE

EBRD ECONOMIES ARE REDUCING THEIR CARBON INTENSITY, BUT MORE NEEDS TO BE DONE AS THE
GHG INTENSITY IS HIGHER THAN THAT OF THE REST OF THE WORLD

Achieving the Paris Agreement goals will require a rapid shift and massive scale up in green investment flows. Policies and incentives are needed to systemically align markets
and investments to drive innovation and enable rapid scale-up of net zero solutions. Initial estimates for the investment gap in the EBRD region are about US$ 400 million /year. Carbon pricing, including international cooperation through Article 6, is part of the broader arsenal of tools available and can help leverage the investments.

OFFICIAL USE

CARBON PRICING AND MARKETS ARE A KEY DRIVER IN OUR PARIS ALIGNMENTAND GREEN ECONOMY TRANSITION APPROACH

Carbon Markets•Guide investment decisions throughprice signal•Unlock additional revenue streams tosupport climate investments•Drive cost efficient GHGe reductions
and removals•Help countries to achieve NDCs more
flexibly•Promote international co-operation &global partnerships•Strengthens MRV and accounting

PolicyEngagement

GETABI
Leveraging carbon markets to facilitate:• Green Financial Systems• Industrial Decarbonisation• Sustainable Food Systems• Energy Systems Integration• Cities and Environmental Infrastructure• Sustainable Connectivity• Green Buildings• Natural Capital✓ Support countries integrating carbon markets inNDCs and LTSs
✓ Capacity building for GHG accounting, D-MRV✓ Support countries with the implementation ofcarbon pricing instruments (ETS, carbon tax, A6)✓ Engaging in policy dialogue - UNFCCC, J-MDBWorking Group, IETA, ICAP, VCM-standards✓ Support recycling of auctioning proceeds (e.g.
EU Innovation Fund, Modernisation Fund)✓ On Article 6 we look at both market and nonmarket mechanisms, and work with AfDB on theAdaptation Benefit Mechanism,✓ Support the PA methodology
update to ensure alignment withapplicable emerging carbon
market standards & baseline
methodologies incl. under Article
6, Article 13 of the ParisAgreement✓ Knowledge sharing on carbon
market integrity standards andnew initiatives influencing themarket

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WE SUPPORT COUNTRIES WITH LEVERAGING MARKET MECHANISMS AS AN IMPORTANT
TOOL TO DELIVER CARBON AND CLIMATE FINANCE FOR LTS AND NDC IMPLEMENTATIONI.PAST▪

>Managed two carbon trading
funds under the Kyoto
ProtocolA) MCCF (w. EIB)
B) Netherlands Carbon Fund▪
▪

▪

Supported over 30 JI andCDM projects.
Linked supply and demandof GHG emission reductions
in a region that lacked aclear route to market

II. PRESENT▪ Building capacity and piloting
activities to facilitate
monetisation e.g. D-MRV to
increase market efficiency

Ukraine• Support 2nd NDC (incl. ETS)
• Article 6 pilot exploration▪ Facilitate uptake of ambitious
NDCs and national climate
policies (ETS, carbon tax)
▪ Assisting clients in developing
their carbon assets undervarious carbon markets

Supported VCM in Türkiye▪ Engaging in policy dialogue –UNFCCC, IETA, J-MDB, ICVCM, D-MRV WGsVVKyoto Protocol Carbon
Trading as Business ToolPolicy Dialogue andStructuring Transactions

European Union• Modernisation Fund
• Innovation FundSEMED• Carbon MarketOptions Study• D-MRV MoroccoTürkiye• CBAM, A6, VCM
support• Carbon asset
development

Kazakhstan• KZ ETS policy support• Carbon asset development

Uzbekistan• Carbon Market Options
studyGeorgia• Carbon Market Scoping• Article 6 pilotingJordan• Yellow Door Energy /Monetisation Support
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KAZAKHSTAN – CARBON MARKET POLICY DIALOGUEForms part of GCF-EBRD Kazakhstan Renewables Framework
Development of elements of carbon market strategy based on analysis of Kaz ETS with key policy
recommendations toward a sustainable RE market, addressing:

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UZBEKISTAN - CARBON PRICING ROADMAPEBRD supported the Ministry of Investment and Trade with a strategy and roadmap to develop andimplement carbon market instruments in Uzbekistan. Project included: a) A review of carbon market optionsb) Economic modelling of abatement options - MACC; c) Identification of roadmap for implementation ofcarbon market instruments, d) Consultation with key stakeholders on project results

Carbon PricingWorkshop

7TÜRKIYE - CARBON MARKET DEVELOPMENT & DIALOGUE ON CBAM, ARTICLE 6
I. NATIONAL LEVEL

II. BANK LEVEL

Capacity Buildingand policy
dialogue

Developing bank’s
carbon market
services

Promoting initiatives that canfurther increase participation ofsovereign and private sector
actors in the national andinternational carbon market incl.
advising on the impacts of CBAM,Article 6, CORSIA and theTurkish ETS

Banks are well positioned to help
clients manage the risks andopportunities created by carbon
markets. EBRD provides
training to Turkish partnerbanks across a range of carbon
market activities, including project
origination; trading & brokerage

III. PROJECT LEVEL

Carbon asset
development
supportTA to renewable energy andenergy efficiency projects thatare eligible for carbon financing.
This support included carbon
asset development andmonetisation of the generated
carbon credits under relevant
carbon standards.

Partner:

www.turkishcarbonmarket.com

8LEVERAGING OUR MARKET KNOWLEDGE AND GREEN FINANCING TOOLS TO
FACILITATE ARTICLE 6 TRANSACTIONS
1.

Scoping in close partnershipwith selling and buying
countries the markets &technologies that can scale todeliver both NDC
implementation and ITMOtransactions. Using Article 6 toinitiate green markets.

2.

Designing and structuring thedelivery mechanism, including
use of carbon transaction
proceeds and leverage thiswith EBRD and private sector
finance for projects at a
programmatic scale.

3.

Support in structuring anddocumentation to ensure
Article 6 schemes deliver thegreenhouse gas emission
reductions.

9INTERNATIONAL CARBON MARKET COOPERATION & ENGAGEMENT

Partnershipsand Network
MDB Working Group on Article 6Digital4Climate Collaboration

Climate Market Club

The objective of the WG is to position
Article 6 as a high strategic priority inclimate negotiations and encourage Parties
to leverage market/price-based
mechanisms as an important tool to deliver
NDCs cost-effectively. A second objective isto find mutually interesting opportunities topilot Article 6 transactions through theMDB investment portfolio.

Digitalisation of MRV approaches helps
increase efficiency, reliability and credibility
in the carbon market.

MDBs act as Secretariat to the Climate
Market Club, which is a group of national
governments and non-sovereign membersthat agree on common principles andjointly develop modalities for piloting
activities under Article 6.2 of the ParisAgreement. The objective of the Club is toserve as a forum for discussion andconsensus on how different elements ofArticle 6.2. of the Paris Agreement can bepiloted.

The D4C work program is a collaboration
between EBRD, UNDP, UNFCCC, and WorldBank that aims to coordinate respective
workflows and create a modular end-to-end
digital ecosystem for the carbon market.

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