Objective of Country Assessment Guidelines Public Private Partnership

Objective of Country Assessment Guidelines

On this page: These Guidelines are intended to be complementary to the different programs and initiatives offered by the World Bank in relation to climate policy and financing. Read more below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, or Mobilizing ERC Finance.

These Guidelines are primarily intended to provide governments with a strategic and holistic understanding of how the demand-side participants of the global emission reduction credit (ERC) markets perceive local policies and institutions in their ability to support the generation of high-quality ERCs. For this reason, these Guidelines take the view of parties, across both private and public entities, intending to invest in or purchase emission reduction credits from the target country and lay out the policy and institutional components that will be critical for such parties to make their investment and purchase decisions.

As set out in Introduction to the Country System Assessment Framework, the process of conducting the Country Assessments requires inputs and data from multiple sources and stakeholders. The Assessment will start with a baseline of the country’s participation in the global ERC markets, as well as establishing an in-depth understanding of the country’s current legal and institutional frameworks. This baseline will consider under which crediting mechanisms - whether international, domestic, or independent - local ERC projects are able to register to access international ERC markets, to determine which components of the framework are most important to make the country an attractive source for the global ERC market. The assessment is followed by recommendations for policy actions and a proposed roadmap for the country to implement a reform program to maximize benefit from the sale of ERCs to the global markets. Stakeholder engagements are recommended throughout the process to ensure that the right data is used, and to ensure that the local context is continuously incorporated.

After completing the Assessment for the first time, country governments are recommended to utilize these guidelines and conduct the assessment process on a periodic basis and as part of a continuous reform program to test its ongoing implementation and achievements. The periodic review will enable the implementing institutions in the government to (1) objectively gauge progress against the aims set out in the policies enacted; (2) enable an understanding of how new policies or reforms (such as new Article 6 mechanisms and/or trade agreements) may impact how the country’s overall landscape is perceived by the global markets; and (3) produce a refreshed view of policy actions needed as the markets continue to evolve.

These Guidelines are recommended for use by governments to support climate financing objectives, in relation to the carbon markets. Hence, they are intended to be complementary to the different programs and initiatives offered by the World Bank in relation to climate policy and financing, including:

Fund/Initiative/Program	Fund/Initiative/Program Objective
Climate Support Facility	Integration of long-term climate considerations into the World Bank’s advisory services and operations, including support to expedite project preparation and facilitate post-COVID green stimulus projects.
Partnership for Market Implementation Facility	Support countries to build capacity and supports scaling up of carbon pricing instruments, including international carbon markets.
Scaling Climate Action by Lowering Emissions	Aim to be one-stop shop for deploying results-based climate finance to drive transformative climate action at scale for countries' mitigation efforts.
The Climate Warehouse	Produce analytical and technical outputs to enable participation in Article 6 transactions by the WB’s client countries and shape the next generation of climate markets, specifically prototypes, tests, and develops digital infrastructure to foster greater transparency, trust, and integrity in the carbon markets.
Climate Market Club	A forum for discussion and consensus for a group of national governments and non-sovereign members that agree on common principles on how different elements of Article 6.2 of the Paris Agreement can be piloted.
Mitigation Action Assessment Protocol (MAAP)	A tool to evaluate the risks and performance of climate actions and policies in relation to their design, capacity, financial sustainability and development benefits across 3 major modules: (1) Programs and projects; (2) Carbon Pricing Instruments; and (3) International Transfer Readiness.
State and Trends of Carbon Pricing	Annual World Bank publication that provides up-to-date overview of existing and emerging carbon pricing instruments around the world, including international, national and subnational initiatives on an annual basis.

Note(s):

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.

UNLOCKING GLOBAL EMISSION REDUCTION CREDIT

Strategic Guidance for Country System Assessments

1. Introduction to Emission Reduction Credits

• The World Bank's Emission Reduction Program

• Emission Reduction Credits

• Classification of Emissions Reduction Credit

• Policy Context of Emissions Reduction Credit

2. Objective of the Strategic Guidance for Country System Assessments

• Objective of these Guidelines

• Introduction to the Country System Assessment Framework

• Process to conducting assessments

3. Framework Component Deep Dives