Japan–World Bank Collaboration onCarbon Pricing and JCM

Dr Venkata Ramana Putti
04 December, COP25, Madrid

WBG role in carbon pricing
BUILD CASE AND EVIDENCE BASE THROUGH ADVOCACY, CAPACITY BUILDING, KNOWLEDGE
DISSEMINTION, INNOVATIVE INSTRUMENTS AND PILOTINGPMR/PMI

S&T,
Dashboard

Advisory

Advocacy

Innovation• Carbon Pricing
Readiness• Domestic policy
architecture• Capacity
building• Create
awareness• Mobilize
political support• Generate
evidence base

• Pilot innovative
instruments/pro
cesses/financialmechanisms

Knowledge Management

WB-Japan Collaboration
 Japan has been a contributor to the Partnership for Market

Readiness (PMR) Japan has been a member of Carbon Pricing Leadership

Coalition (CPLC) The MOU announced by MOE-J at the Asia Pacific Climate

Week in Bangkok in September 2019. The overall objective is tocollaborate on Japan’s Joint Crediting Mechanism (JCM) tosupport future carbon markets

 This is sought to be achieved through Support to the Partnership for Market Implementation (PMI),

successor to the PMR focusing on implementation of carbon pricing
instruments
 Formal announcement at COP25 on 10 December Participation in CPLC’s high level advocacy activities Leadership Dialogue at COP25, 10 December Participation in WB’s Innovate4Climate global flagship event onclimate action

 May 26-28, Barcelona, Spain

 Working on methods/instruments to help operationalize Article 6
 Climate Warehouse

PMI Goals and Objectives•

Support participant countries/jurisdictions in theimplementation of carbon pricing instruments
needed for GHG mitigation and NDC
implementation•

Develop the knowledge base on carbon pricinginstruments and facilitate information exchange
through technical discussions and dissemination ofknowledge products••

Assist countries to identify and implement bestpractice approaches and, where relevant, achieve
compatibility in design to support the development
and linking of international carbon markets
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

2025 CCAP Target:
10-20 new countries
achieve readiness;

5-10 countries begin
implementation

PMI Scope and Coverage

Carbon Pricing
Implementation Support Target: Countries with a

Carbon Pricing Readiness
Roadmaps

 Target: Countries readydemonstrated politicalcommitment or an existing
carbon pricing system inplace Support package:
Strengthening domestic
implementation capacity,strengthening legislative andpolicy review functions,scaling and expanding to
new sectors

for the decision to
implement a carbon
pricing instrument
Support Package: Early
stage activities todetermine which
instrument to adopt, build
stakeholder support forpolicy infrastructure, e.g.
MRVTargeted Support

 Target: Regional,

subnational jurisdictions
 Support Package:Harmonization of carbon
pricing infrastructure,development oftransparent accounting
procedures, etc.

Climate Warehouse JCM team participated in a simulation inOctober 2019 to connect with an internal
blockchain-based meta-registry systemdeveloped by the World Bank’s ITSTI Lab.

 JCM collaborating on two bilateral activities
 Bangladesh is exploring the role of registrysystems and institutional and governanceframework for Article 6, building on its pastexperience with CDM and JCM.

 Kenya is working to build its own capacity todevelop renewable energy projects byliaising with Japanese partners. An InterMinisterial Technical Working Group on
Article 6 is working to define the role ofclimate markets in NDC building on thecountry’s experience and learning from CDMand JCM.

Thank You!