Total capitalization of USD 127 million
Launched in 2010, the Partnership for Market Readiness (PMR) is helping to establish carbon markets in developing, emerging and transition countries. The secretariat function is performed by the World Bank. Guided by the needs of the partner countries, the PMR is pursuing various approaches, such as the development of national emissions trading systems or new market instruments (new market mechanisms, CO2 taxes and national certification standards). The PMR functions both as a dialogue forum for technical exchange and as a trust fund for developing, piloting and implementing new carbon market instruments. Its work is also helping create systems for the measuring, reporting and verification (MRV) of emission reductions as well as expanding resources and expertise.
The PMR brings together more than 30 countries, various international organizations, and technical experts to facilitate country-to-country exchange and knowledge sharing and, as such, enables enhanced cooperation and innovation.
Objectives:
- Providing grants for countries to build market readiness components
- Piloting, testing, and sequencing new concepts for market instruments
- Creating a platform for sharing experiences and information about market readiness, promote south-south cooperation and innovation
- Creating and disseminating a body of knowledge on market instruments that could be tapped for country-specific applications
- Sharing lessons learned, including with the UNFCCC
Australia, Denmark, European Commission, Finland, Germany, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom, United States
Co-financing is a very important indication of a country’s willingness and readiness for piloting and implementation. Types of co-financing may include a country’s own resources (funding and in-kind such as human resources) and sources from other initiatives, including bilateral and multilateral programs. Types of co-financing may include a country’s own resources (funding and in-kind, such as human resources) and sources from other initiatives, including bilateral and multilateral programs.
PMR Annual Reports highlight results, summarize activities, and report on the status of the trust fund.
Decisions about PMR funding allocation are made by the Partnership Assembly, which meets 2-3 times a year. Meetings are co-chaired by elected participants - one from the implemented Country Participants and one from the Contributing Participants. Decisions of the Partnership Assembly are made by PMR Participants on a consensus basis, unless all efforts to reach a consensus have been exhausted and no decision has been reached, decision will be taken by ⅔ majority of contributing participants and ⅔ of Implementing Country Participants.
Governed by the Participant Assembly, observer countries and organizations, technical experts, and a Secretariat, trustee and delivery partner. The Participant Assembly is the decision-making body made up of representatives from all of the 17 Implementing Country Participants (countries that participate in the PMR) and 13 Contributing Participants (donors that have contributed financially to the PMR). The World Bank serves as the secretariat of the PMR to provide secretariat services and technical support for day-to-day operations.
Countries must have an approved Market Readiness Proposal (MRP), which is developed in the Preparation Phase of the process.
Become eligible to access funding by joining the PMR as an Implementing Country Participant. Countries interested in joining the PMR as Implementing Country Participants submit an expression of interest to the Secretariat. Depending on the availability of funding, a country is invited to present an Organizing Framework for the Scoping of PMR Activities.
The framework outlines the types of activities a country is prepared to explore in its MRP, including:
- Overview of a country’s mitigation objectives and emissions profile
- Potential core readiness components (and potential market-based mechanisms if a country is at this stage) for development
- Identification of sectors to be targeted
- Inclusion of other relevant work streams that could complement the PMR work.
The Organizing Framework is presented to the PA for consideration and endorsement. Once a country is confirmed by the PA, it is allocated preparation phase funding in the amount of USD 350,000.
Implementing Country Participants use the preparation phase funding to prepare a MRP. The MRP provides a detailed roadmap of the market readiness components and - if appropriate - market-based mechanisms a country intends to explore as part of its participation in the PMR. The MRP also includes a timeline and budget for these activities. For more details on the contents of the MRP, visit Country Work to read about the MRP's six building blocks or download the MRP Tool.
During the preparation phase, draft MRPs receive feedback through two channels: first from an independent expert group with technical expertise specific to the proposal, and second from other PMR Participants following a presentation to the PA. Following revisions based on this feedback, a final version of the MRP is presented to the PA for consideration of funding.