Green Economy Priorities
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On this page: This criterion looks at the alignment of various project types with the country’s economic priorities, based on its indication of sectors to contribute to its green economy transition and its Nationally determined contributions. Read more below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, or Mobilizing ERC Finance.
S1: Green economy priorities is the only component assessed under Step Zero of the process, where a set of inputs per country are determined for use across all Project Profile Templates in the initial profiling exercise, and not assessed on a project-by-project basis. This criterion looks at the alignment of various project types with the country’s economic priorities, based on its indication of sectors to contribute to its green economy transition and its NDCs. The country-level assessments following the Guidelines for Country Systems developed alongside this paper can also be used in parallel, by taking the analyses for the criteria S2: Efficient permitting and adaptable standards. The analysis for the country assessment will focus on understanding the clarity of project implementation standards provided by host governments for project developers, by reviewing the basis for a country’s eligible project list, such as the project type’s potential supply, the country’s sectoral NDC commitments, and its perceived market demand. These can, therefore, inform the inputs required for the green economy priorities criteria under this guideline to map a list of project types indicated by the country as eligible for global VCMs. The following input can be used as a reference: Using this input, the following analyses serve as a guide for the assessment: Green economy priorities The guideposts below provide guidance to rank project types from being fully aligned (5) to not aligned (1), thus indicating each project type’s alignment to the country’s green economy priorities. See Figure 2.1. Figure 2.1. Guideposts for ranking project types’ alignment with green economy priorities For countries whose green economy priorities are still in development, or where useful to the objectives of the exercise, two other potential factors can be used to assess the alignment of project types to a country’s priority: Should these additional factors be used, the project type’s rating for the criterion S1 can then take its average rating across these factors. The project’s overall rating will correspond to the rating levels used for the Project Profile Template, as indicated in Introduction to the Project Assessment Framework. A rating level of 4 to 5 will correspond to “high potential”, 3 to “medium potential” and 1-2 to “low potential”. Supply capabilities The following inputs can be used as a reference: Using these inputs, the following analyses serves as a guide for the assessment: The guideposts below provide guidance on the project type’s rating for this factor, that will contribute towards its average priority rating. See Figure 2.2. Figure 2.2. Guideposts for rating the country’s supply capabilities for each project type Buyer priorities1 The following inputs can be used as a reference: Using these inputs, the following analyses serve as a guide for the assessment: The guideposts below provide guidance on the project type’s rating for this factor, that will go towards its average priority rating. See Figure 2.3. Figure 2.3. Guideposts for rating the project type’s potential for alignment with buyer priorities Footnote 1: This factor looks only at potential buyer countries at a government-to-government level. This does not include private sector buyers, which the rest of the criteria in the Framework are targeted towards by looking at key considerations from international VCM buyers, such as corporates.Guideposts for green economy priorities
Rating
Guideposts for green economy priorities
5 The project type is fully aligned with economic sector priorities and/or NDCs, and is a top priority for stakeholders, with significant support and funding from government. 4 The project type is highly aligned with economic sector priorities and/or NDCs, and is a major focus area for stakeholders with sufficient funding allocation. 3 The project type has some alignment with economic sector priorities and/or NDCs, but is not a significant focus area and funding allocated is moderate. 2 The project type has some alignment with economic sector priorities or policies and/or NDCs, but it is not a significant focus area and funding allocated is limited. 1 The project type is not aligned with green economy priorities and/or NDCs, and no government support or funding is allocated. Guideposts for supply capabilities
Rating
Guideposts for supply capabilities
5: Very high mitigation potential 4: High mitigation potential 3: Moderate mitigation potential 2: Low mitigation potential 1: No mitigation potential Guideposts for buyer priorities
Rating
Guideposts for buyer priorities
5 There is strong and specific alignment with potential buyer countries' MoU or NDC/climate strategies, with clear indications that mitigation activity is a high priority. 4 There is an alignment with potential buyer countries' MoU or NDC/climate strategies, with some indication that the mitigation activity is a priority. 3 There is vague mention in potential buyer countries' MoU or NDC/climate strategies about the mitigation activity being considered for credit purchase, but it is not a high priority area. 2 No clear articulation in potential buyer countries' MoU or NDC/climate strategies about mitigation activity being considered for credit purchase, but some indication of interest for future engagement. 1 There is no mention in potential buyer countries' MoU or NDC/climate strategies about the mitigation activity being considered for credit purchase
TABLE OF CONTENTS
UNLOCKING GLOBAL EMISSION REDUCTION CREDIT
Guidance for Countries in Assessing ERC Projects
1. Introduction to Emission Reduction Credits
• The World Bank's Emission Reduction Program
•Classification of Emissions Reduction Credit
• Policy Context of Emissions Reduction Credit
2. Objective of the Guidance for Countries in Assessing ERC Projects
• Objective of Project Preparation Guidelines
• Introduction to the Project Assessment Framework
• Process to Conducting Assessments
• S1: Green Economy Priorities
• S3: Article 6 Readiness and Eligibility
4. Conducting the Initial Profiling and Making a Preliminary Decision
• F2: Additional Value Enabled by Project
• C1, C2, and C3: Carbon Integrity and Environmental and Social Risk Management
5. Conducting the Project Assessment and Making the Final Decision
• F1: Project ERC value and F2: Additional Value Enabled by Project
• Q2: Marketing, Sales, and Pricing
• Q3: Project Governance and Structure
• C2: Environmental Risk Management
• C3: Social Risk Management and Benefits
6. Further Guidance for Application
• Country Context-driven Factors
• Considerations for Future Scope
Abbreviations: Guidance for Countries in Assessing ERC Projects
This section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.