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IETA & THE WORLD BANK - UPDATE ON CLIMATE WAREHOUSE SIMULATION PHASE II & MITIGATION ACTION ASSESSMENT PROTOCOL
June 24, 2021
World Bank & IETA
The objective of the webinar is to provide updates on the second phase simulation of the Climate Warehouse and introduce the Mitigation Action Assessment Protocol (MAAP).
Recording available HERE
Background:
The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through nationally determined contributions (NDCs). It recognizes that Parties may engage in cooperative approaches (including market instruments) to achieve their NDCs. This is expected to lead to heterogeneous carbon markets, which may have differences in governance rules and may utilize different infrastructure configurations and using different technologies.
Depending on country capacity and needs, countries are expected to collect information about Mitigation Outcomes (MOs) in a variety of repositories including spreadsheets, data management systems, and registries. In order to ensure robust tracking and to avoid double counting and ensure the environmental integrity of transfers, there is a need for a system in which different databases and registries are linked, thereby enhancing transparency and trust among market participants and enabling tracking of MOs across jurisdictions. Against this backdrop, the World Bank’s Carbon Markets and Innovation team (CMI) is developing a Climate Warehouse ecosystem to demonstrate a decentralized information technology approach to connect climate market systems. The first simulation took place in October 2019, and the summary of the outcome can be accessed here.
On the other hand, the NDCs submitted by countries under the Paris Agreement reflect the national circumstances and vary in the form, scope, and timing of their mitigation contributions. While this facilitated broad participation, the diversity of approaches might reduce transparency between climate actions and increase the complexity of market integration if these countries participate in climate markets. A standardized framework is needed to assess different climate actions, build transparency and trust in decentralized climate markets, and drive market demand towards transacting high-quality climate assets. In this context, the World Bank CMI has developed the Mitigation Action Assessment Protocol (MAAP) as a key tool to help countries assess, prepare, and participate in international carbon markets and domestic carbon pricing instruments.