SUPPORTING COUNTRIESWITH
DEVELOPMENT OF INFRASTRUCTURE
FOR
INTERNATIONAL CARBON MARKETSChanging context and changing requirements
means countries need to get prepared, quickly
ReportingAccounting

Tracking

..and, countries need an infrastructure thatsatisfy multiple requirements

An infrastructure that supports domestic and international markets determines
the country’s ability to participate in markets and meet climate goals
Outcomes

Domestic
Instruments likeETS, JCM,
VoluntaryMarkets, etc.

National/digital
Monitoring,
Reporting andVerification (MRV)systemLink to Inventory

Link with ITMOs(Article 6)•Tools to support NDC reporting•

Ability to support transactions andinteroperability between domestic
mechanisms

Enhanced National
Climate Registry•

Participation in international carbonmarket•

Address risk of double counting anddouble claiming

World Bank Climate Warehouse Program:

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 carbon
markets 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

Climate Warehouse Program: Building an End-to-end digital Ecosystem for Carbon Markets

Digital Methodology

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

Physical Layer(MRV)

Database Layer(MRV)

Program Level MRV
Equipment
Sensors
MetersSatellite

Centralized
Database/
optionally toNational MRV
SystemIndependentStandards

Country registries

UNFCCC registries

WB registries

Compliancereporting
Benchmarking
Due diligence

Tokenization
EngineForecasting

Transaction
Layer
Exchange A

Verification ofunits

Digital work-flow

Service
Layer

Ratings

Digital Carbon Assets

Facility Level MRV

Metadata
Layer

Registry
Layer

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

Exchange BExchange X

Reporting formarkets, UNFCCC

Inventory Systems

Main Features of the World Bank supported MRV and Registry System
Projects

Sectors

Methodologies

Independentval/ver

Grid EFtool

Co-benefits

Data frominventory

Manual andauto data pullStandard
Reports
NDC
linking/tag

Database,
Serialization

ERs

ClimateFinance recd

Connectivity
Automatedsystems(e.g. dMRV)

Tracking of units(transfer, acquisition,hold, cancellation anduse )Documentation

MRV System(Project, Sector, National)

Registry System
Both will have a ‘Public Part’ + ‘Private Part’

Connection
to otherSystem(s)The World Bank offers two opensource national carbon registries

Core Registry

Enhanced Registry- Issuance of digital carbon credits- Simplified manual entry mechanism toupload project and unit data
- Tool to digitize carbon credits fortransactions (tokenization)- Automatically synced to the global
platform Climate Action Data Trust forreporting purposes- Issuance of carbon credits- Domestic and international crediting
market transactions- Embedded national MRV system with
automated data entry mechanisms- Multistakeholder account managementsystem

8What are the Key Characteristic of the Registry Offering?

9Infrastructure Strategy: What countries
should do and know?
• Understand the needs•••••••••••

What is used for – carbon pricing, carbon markets, both
MRV or Registry or both
Is something already there? What state?
What the plans are? Develop a new one or strengthen the existing or add new functionalities
MRV – project level, facility level, sector level, national level
Standards/methodologies - domestic, international, both
Process – who is responsible, who validates, who maintains
Registry – Register, Transaction registry, linking with other registries
Access to the systems – only to the govt or market players or both
Info public/market participants – aggregate date, where to publish, what frequency
Maintenance requirements – inhouse, domestic or international capacity• Understanding the functionalities of MRV and Registry that are offered by Partners• Identify the gaps
• Assess capacity building needs• Assess the need for regulatory support• Assess the scope and estimate the budget needs

Some early observations• Countries with cooperative approaches (under A6.2) are ahead with plans to establish
the infrastructure systems• Countries with already established data mgmt. systems are building on the existing ones;
but not a straight-forward process• Priority to have the registry system over the MRV system; but mainly due to lack ofclarity on which one does what and their usefulness• Lack of understanding on what the UNFCCC registry supports and the need for having anational level registry• No best practices to adopt for development of systems for carbon markets and tounderstand the costs to build such (vary from $50k to $500k)• Some countries are ahead of having systems before they develop the policy framework
to govern them
• Countries with fewer projects and decided to have systems are likely to make systems
redundant• Countries with domestic carbon pricing or in the process of having one are exploring
options to have one that serves both; but influenced by the governance and resources

Some early challenges• Lack of resources (manpower) to manage the systems• Inability to get the resources needed for maintenance of systems• Difficulties to align with the governments own IT policies, mainly on
the security of systems and the ownership• Challenges with the user management• Obtaining the quality data and in a timely manner• Connectivity with other registries due to lack of standard
communication protocols

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