Overview of World Bank’s ERP
The ERP includes two main workstreams.
- Workstream One is focused on ERC market development, by providing governments with access to knowledge and technical assistance. It incorporates analysis and recommendations around legal and institutional frameworks, governance models, policies, and infrastructural and resource capacity for accessing global ERC markets, as well as ways to synergistically align domestic markets with a global ecosystem. Under this workstream, the Guidelines for Assessing Country Systems for Global Carbon Markets has been developed.
- Workstream Two is targeted at supporting ERC generation in participating countries. It is designed to support the creation and generation of ERCs, offering guidance and implementation assistance for project selection and preparation. It is also targeted at mobilizing relevant finance to sustain the generation of ERCs over time, incorporating a wide range of financing mechanisms. Under this workstream, the Guidelines for Assessing Emission Reduction Projects for Global Carbon Markets has been developed.
The Project Assessment Guidelines aim to provide a comprehensive and adaptable guide to identify and develop ERC projects and investments in order to generate high-quality ERCs to be sold in global markets, under Workstream Two of the ERP. These can be used in parallel with the Guidelines for Country System Assessments, under Workstream One of the ERP.
The Country System Guidelines aim to provide governments with a strategic and holistic assessment of their current legal and institutional frameworks, to help them understand how the global market perceives their country systems and where any gaps or short-comings might be found, under Workstream One of the ERP.
As part of ERC generation support, there is a general need for enhanced market clarity on the transaction-enabling conditions for and barriers to ERC program development, potential strategies to address those barriers, and the appropriate financial structures to unlock finance at scale. This is particularly important due to the potential role ERCs can play in achieving Nationally Determined Contributions (NDCs) under the Paris Agreement and monetizing climate change mitigation outcomes. The Mobilizing ERC Finance Guidelines aim to assist governments, project developers, and financiers in understanding key transaction-enabling conditions and financial structures to mobilize finance for ERC generation.
The ERP is starting with countries in East Asia and the Pacific (EAP), as a region with a variety of emission reduction opportunities and well placed to be at the forefront of global ERC development and will be rolled out to other regions globally.
