Region: Global
Country: Global / Non-Specific
Sector: Energy and Power
Keywords: Emission Reduction Program
Document Link(s):
Document(s):
Document Summary:
This approach paper aims to reach a common understanding on what market infrastructure may be needed at the national and international level to meet transparency and integrity requirements of Article 6, as well as to store, track, and transact units at different stages of a carbon asset’s life cycle. Different options will be explored to assess how the market infrastructure at the national and international level could be developed under different scenarios. As this space is evolving rapidly with different market players adopting innovative technologies and approaches to serve different needs, and also with the infrastructure requirements at the national level and the role of UNFCCC becoming clearer, the assessment and analysis presented in this paper might warrant revision on a regular basis.
Document Details:
The Kyoto Protocol has provided a common framework for greenhouse gas (GHG) accounting through its internationally governed market-based approaches. On the other hand, the Paris Agreement is not calling for the establishment of one centrally coordinated or interlinked emissions trading architecture. The discussions at COP25 on Article 6.2 only suggest that each participating Party shall have, or have access to, a registry for tracking purposes. While this market infrastructure will need to reflect the diversity of instruments and market transactions, as well as differences in country capacities, a certain degree of standardization is likely to be required if the countries intend to use international market mechanisms or cooperate by connecting their national registries to those of other jurisdictions. Striking the right balance between these two purposes - that is, creating a registry that is both nationally appropriate and internationally compatible - will be one of the biggest challenges. That said, future developments regarding infrastructure design in the Paris framework will benefit greatly from already existing infrastructure, as well as knowledge and experience that have been gained over the years. This approach paper aims to reach a common understanding on what market infrastructure may be needed at the national and international level to meet transparency and integrity requirements of Article 6, as well as to store, track, and transact units at different stages of a carbon asset’s life cycle. Different options will be explored to assess how the market infrastructure at the national and international level could be developed under different scenarios.
Updated: January 11, 2024
Related Content
Unlocking Global Emission Reduction Credit
Page Specific DisclaimerThis 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 PPPLRC at ppp@worldbank.org.
KeywordsBanner NoticeWatch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Introduction to Emission Reduction Credits
Page Specific DisclaimerThis 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 PPPLRC at ppp@worldbank.org.
Banner NoticeWatch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Strategic Guidance for Country System Assessments
Page Specific DisclaimerThis 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 PPPLRC at ppp@worldbank.org.
Table of contents TitleTable of ContentsTable of contents link/Emission_Reduction_Program/Strategic_Guidance_Country_System_Assessments/Table_of_ContentsBanner NoticeWatch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Guidance for Countries in Assessing ERC Projects
Page Specific DisclaimerThis 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 PPPLRC at ppp@worldbank.org.
Table of contents TitleTable of ContentsTable of contents link/Emission_Reduction_Program/Guidance_for_Countries_in_Assessing_ERC_Projects/Table_of_ContentsBanner NoticeWatch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Mobilizing ERC Finance
Page Specific DisclaimerThis 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 PPPLRC at ppp@worldbank.org.
Table of contents TitleTable of ContentsTable of contents link/Emission_Reduction_Program/ContentsBanner NoticeWatch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.