The Partnership for Market Readiness, which was launched in Cancun, seeks to provide a platform for sharing experience, fostering new and innovative carbon market instruments, harnessing financial flows, and building market readiness capacity for countries to scale up their climate change mitigation efforts.
8 December 2010: World Bank Group President Robert Zoellick announced the establishment of the Partnership for Market Readiness at an event on the sidelines of the Cancun Climate Change Conference. This initiative will create a platform for sharing experience, fostering new and innovative carbon market instruments, harnessing financial flows, and building market readiness capacity for countries to scale up their climate change mitigation efforts.
The Partnership received pledges of more than US$20 million by Australia (A$10m), the European Commission (€5 million) and the US (US$5 million) in Cancun, and builds on an early pledge of US$5 million from Norway. In addition, Germany, Japan and the UK announced their intention to support the initiative financially. The Partnership is aiming for a total capitalization of US$100 million and is expected to become operational in early 2011.
The Partnership aims to cover a range of market instruments, from domestic schemes, such as emissions trading for carbon or its proxies, such as renewable energy and energy efficiency certificates, to international market instruments such as a reformed Clean Development Mechanism (CDM) and any new scaled-up crediting mechanisms. It will provide capacity building for “readiness components” that are essential to any form of market instruments, including setting up domestic systems for monitoring, reporting and verification (MRV), enhancing institutional capacity, and establishing policy and regulatory frameworks. [World Bank Carbon Finance Press Release] [World Bank Press Release]