The goal is to create synergies with the World Bank’s programme and leverage overall climate ambition, helping businesses identify opportunities created by voluntary and compliance markets as well as the operationalisation of Article 6.
With more than 20 years as market champion, IETA is ideally positioned to promote common understanding with local businesses in these countries, share best practices and assist in the market design/policy development processes.
B-PMI aims to support the emergence of a new global carbon pricing architecture where different domestic and international markets co-exist in an integrated and interoperable ecosystem.
WHAT IS THE PMI?
The World Bank’s Partnership for Market Implementation (PMI) is a grant-based, capacity-building fund that supports 30 countries and jurisdictions in the development and implementation of carbon pricing instruments to meet their NDC targets and long-term decarbonisation strategies. It helps countries participate in the operationalisation of Article 6 of the Paris Agreement, identify and implement best practice approaches and, where relevant, achieve compatibility in design with other carbon pricing efforts and markets. It provides a platform for technical discussions, information exchange, and collective innovation on carbon pricing instruments and market mechanisms that inform the national and international policy discussions on GHG mitigation.
IMPORTANCE OF THE B-PMI
The private sector is a crucial stakeholder in ensuring the economic efficiency and environmental integrity of the implementation of carbon markets and the operationalisation of Article 6 worldwide. However, the World Bank’s PMI does not focus on business engagement and private sector capacity building. IETA’s B-PMI seeks to bridge this gap by establishing an initiative focused on bringing business expertise to help both public and private sector engage with carbon markets.
Counting on IETA’s membership that includes almost 300 leading companies active in carbon markets worldwide, some of which are already active with Article 6.2 pilot projects, and representing the full range of technical capabilities needed to make markets work, the B-PMI offers experienced professionals to be credible voices of support for carbon pricing and market mechanisms in PMI jurisdictions – encouraging local businesses and helping local stakeholders to gain value from the market.
By doing so, B-PMI can inform policies and increase business support for carbon pricing mechanisms aligned with both national long-term climate targets and the Article 6 rulebook. Strategically, B-PMI presents an opportunity for IETA members to gain a better understanding of new carbon pricing mechanisms, network with new potential business partners, and gauge new trends in market formation.
i. Q1-Q2 2022
Launch of the initiative; recruitment of Steering Committee members; selection of initial target countries; start engagement.
iI. Q3 2022-Q4 2023
Operations in the first two or three target countries.
iII. Q1 2024 and beyond
Based on the experiences of Phase 2, we will seek to expand the programme in additional jurisdictions. Depending on the level of interest, funding and results achieved, the programme will expand at a rate of up to two to three target countries per year.
– CONNECTING THE DOTS
B-PMI OFFICIAL LAUNCH
The World Bank welcomed the B-PMI and provided the venue for its official launch in May 2022.
‘Launch of the Business Partnership for Market Implementation (B-PMI) – Mobilising the private sector for effective carbon pricing implementation’ took place virtually at the World Bank’s Innovate4Climate (I4C) event.
Initially, B-PMI Steering Committee was composed of companies serving on the former B-PMR Steering Committee and, gradually, it evolved to new IETA members making new pledges and contributions to the initiative.
As B-PMI dialogues involves costs that are beyond the core budget of IETA, member companies are invited to support the B-PMI at various levels (as sponsors, contributors, hosts, or pro bono supporters). Sponsors and selected Supporter companies serve on a Steering Committee to provide day-to-day guidance.
B-PMR ACHIEVEMENTS AND LESSONS LEARNED
The B-PMR was implemented to promote industry readiness, knowledge transfer, and policy preparation and fulfill the critical role of building business capacity by sharing real-world experience. It became a forum where experts were on hand to engage in robust dialogue with local industry stakeholders. Between 2012 and 2019, IETA’s B-PMR initiative held multiple industry-to-industry dialogues in selected PMR participating countries, such as China, South Korea, Kazakhstan, Mexico, and South Africa.
Some key learnings from B-PMR missions were:
- Having similar or comparable verification standards helps in seamless integration between different markets.
- Greater cooperation, accountability, and transparency in a market add to its value.
- Extensive data is essential to make a case for emissions trading as a business opportunity and not an obligation.
- A company may cost-effectively meet its emission reduction targets under an ETS through various strategies, including emission permits & international abatement, offsets, borrowing, banking, and arbitrage.
If you are interested in participating, or have any further questions regarding this IETA’s initiative, please, do not hesitate to contact us:
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IETA has partnered with researchers from the the Center for Global Sustainability at the University of Maryland to produce a number of studies about the potential of international carbon market approaches, identifying how Article 6 implementation could encourage businesses to accelerate climate action and nations to advance more ambitious commitments.