On October 24, 2012 in Sydney, IETA launched a new “Business Partnership for Market Readiness” – or “B- PMR” – to meet these new challenges. We aim to enhance the potential for workable international carbon trading models to emerge around the world. IETA will work in concert with the host governments, the World Bank and PMR donor countries on this initiative.
IETA’s membership spans the globe – with major energy, industrial, financial and service companies in virtually every PMR partner jurisdiction. IETA is ideally positioned to assist in preparing local businesses to operate successfully in these new markets.
By sharing experiences from existing carbon markets, IETA will promote common understanding with local businesses in PMR countries, share best practices and, where appropriate, assist in the policy development processes.
Click here to read more about B-PMR Missions.
BUILDING BRIDGES TO NEW MARKET OPPORTUNITIES
"IETA's B-PMR aims to bridge the gap between the private sector community and the exciting activities
of the World Bank PMR. As these PMR programs take shape, IETA is perfectly positioned to assist in building business readiness for these new markets, which includes sharing best practices from experiences in existing carbon markets, and where appropriate supporting the policy development process. IETA’s B-PMR will provide the ideal forum to achieve this.”
IETA President and CEO Dirk Forrister
With 16 partner jurisdictions working in the PMR, new emissions trading systems are poised to cover many businesses in developing countries and emerging economies in the next few years. Some of these companies are experienced in the CDM, but most are less familiar with the core operations of an emissions trading market. They can “make or break” these systems, depending on their level of preparedness. This is why the work of the B-PMR is so paramount to the actual policies that the PMR countries are implementing.
FOCUS ON BUSINESS-TO-BUSINESS ENGAGEMENT
Emissions markets only succeed when the business community engages and makes the policy come alive in an operational market. We know this from the early days of the CDM and the EU ETS when major European multinationals grew increasingly comfortable with the concept of emissions trading. Naturally, the fundamental public policy must be in place, with emissions targets, compliance deadlines and rules of the road. But very quickly, it becomes a test of how business will respond to the market incentives – beginning with simple awareness of the policy, and evolving into expert skills, business practices and strategies.
This is where the B-PMR fits in as well. It helps fulfil the critical role of building business capacity by sharing real-world experience, both positive and negative. The raison d’être of the B-PMR is to provide a forum where experts are on hand to engage in robust dialogue with local industry stakeholders.
The B-PMR does this through Missions to host countries that have invited us to come share our experiences with local companies that will be covered by a new program. We organize “business-to-business” dialogues focused on key topics – like how to assess the policy and market fundamentals, and to evaluate market trends and data. We focus on the importance of assessing emissions reduction opportunities that form the basis of a market engagement strategy, as well as to know how to access the market – and how various trading instruments work in practice.
B-PMR MISSIONS
Building upon previous experience, IETA will conduct a series of Missions in a select group of 5 countries that are preparing emissions trading programs under the PMR. We will prioritize the programs that are most advanced – and those that invite IETA's involvement. The goal of the dialogues will be to raise the level of understanding and awareness of emissions trading by industries in PMR-implementing countries. They will explore how systems operate and address challenges and opportunities industries may face when participating in carbon markets.
| TOPICS |
IMPACTS |
- Industry specific participation (power, steel, petrochemical, cement, etc.)
- Impacts of allowance allocations (historic, benchmarks, auctions, hybrids)
- Compliance planning and corporate strategy
- Monitoring, Reporting and Verification
- Financial products and trading
- GHG Accounting and Audits
- Emissions Data and performance
- IT Tools and Infrastructures
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- Better participation and overall performance
of the emerging emissions trading programs
- Encourages common approaches in new trading
systems, leading to better harmonization in future international policy frameworks
- Improved understanding for IETA Members on
the directions PMR countries are taking in market design
- Stronger business-to-business networks in
host countries and links to the international carbon market community |
What is the PMR?
“The Partnership for Market Readiness (PMR) is a grant-based, capacity building trust fund that provides funding and technical assistance for the collective innovation and piloting of market-based instruments for greenhouse gas emissions reduction. The Partnership brings together developed and developing countries, as well as other key experts and stakeholders, in order to provide a platform for technical discussions on market instruments, foster South-South exchange, facilitate collective innovation for pilot efforts and harness financial flows for implementation and scale up.” –The World Bank
Additional information on the PMR is available from The World Bank at www.thepmr.org.
Importance of the B-PMR
The B-PMR aims to support and share the development of good business practices in the operation and/or design of market based instruments to reduce emissions of greenhouse gases in new jurisdictions that are developing emissions trading and carbon pricing policies.
The IETA membership includes over 150 leading companies active in carbon markets worldwide, representing the full range of technical capabilities needed to make markets work. The B-PMR will offer experienced IETA professionals to be credible voices of support for market mechanisms in PMR jurisdictions – encouraging local businesses and helping build their capacity to gain value from the market.
At present, many PMR jurisdictions have not begun private sector engagement. This could become a challenge for the political and operational viability of some of these programs – one that the B-PMR can help to address.
Strategically, the B-PMR is important for IETA members as well. It offers the potential to gain better understanding of new carbon markets, to network with new potential business partners and to gauge new trends in market formation. Finally, it could help inform discussions on the “New Market Mechanism” under design in U.N. talks – a topic of critical importance to market participants.
B-PMR STEERING COMMITTEE MEMBERS
The following companies are contributing members to the B-PMR Steering Committee:
Contact: Jeff Swartz, International Policy Director
swartz@ieta.org, +41 22 737 05 00
Download the B-PMR Brochure here  .
A Chinese translation is available here.
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