A significant amount of effort has gone into quantifying the supply and demand for ERCs globally. There has been less focus on understanding the scale of investment into ERC-generating activities or analyzing the financing structures that are best suited to accelerate capital flow to ERC activities. This report aims to assist governments, project developers, and financiers in understanding key transaction-enabling conditions and financial structures to mobilize finance for ERC generation.

Practical and implementable guidelines for governments to select ERC projects:

The Guidelines are designed to provide practical and implementable guidelines for governments to select ERC projects that are most likely to attract high demand and best-value pricing, and identify key elements related to the project’s governance and sales strategy that will enable the project to achieve its value potential. 

This section 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.

Through the establishment of an Emission Reduction Program (ERP), the World Bank aims to help developing countries to engage strategically with evolving global Emissions Reduction Credits (ERC) markets, support efforts to generate ERCs to sell into these global markets, and mobilize finance for such transactions.