Welcome to the latest edition of our PMI Newsletter!

In this issue, we bring you updates and exciting news from the PMI program and initiatives. Discover how the PMI community is advancing carbon pricing and fostering carbon markets across countries and regions.

We invite you to share this newsletter with your colleagues and encourage them to subscribe to stay informed about our PMI partnership activities.



INNOVATE4CLIMATE 2024

Advancing Carbon Pricing and Fostering Carbon Markets for a Livable Planet

September 10-12— Berlin, Germany

Innovate4Climate (I4C) 2024, the World Bank’s annual global conference on carbon pricing and carbon markets, brought together representatives from the private sector, international organizations, NGOs, carbon integrity initiatives, academia, indigenous communities, client countries and youth delegates.

In the lead up to NYC Climate Week and COP29, I4C 2024 provided offered participants a hub of knowledge exchange, collaboration and deep dive discussions into carbon markets and carbon pricing. The program covered diverse topics such as high-integrity carbon markets, emission trading systems, carbon taxes, methane, voluntary carbon credits, among others.

Axel van Trotsenburg, Senior Managing Director of the World Bank, participated in the opening ceremony, alongside Berthold Goeke, Director-General for Climate Action, Federal Ministry for Economic Affairs and Climate Action of Germany, and moderated the plenary on carbon markets as catalysts for sectoral transitions. The second plenary, moderated by Jennifer Sara, Global Director, Climate Change Group, World Bank, focused on tackling critical bottlenecks in international carbon markets.  

The PMI launched three reports on carbon pricing and carbon markets, (See Knowledge Program Updates below for more details). I4C hosted a Marketplace with 21 exhibitors showcasing their innovative climate solutions.

As in previous editions, I4C featured the Young Climate Innovators (YCI) Workshop, where over 30 young professionals and students shared their ideas on how to tackle climate change through innovation and policy. This workshop focused on the role of youth in shaping the future of climate action through peer-to-peer learning and intergenerational dialogue.  

PMI Global Knowledge Forum 

June 24-25, 2024 – Cartagena, Colombia 

The PMI Annual Global Knowledge Forum is a space where countries convene to exchange insights, showcase progress and tackle challenges in catalyzing the next generation of international carbon markets as well as designing and implementing carbon pricing instruments that support ambitious NDC mitigation targets and Paris-aligned decarbonization goals. 

This year’s Forum was meticulously curated to foster dialogue, bringing together the PMI community – representatives from participant countries, donors, knowledge partners, and other stakeholders.  The focus was on Domestic Carbon Crediting Mechanisms and International Carbon Markets and the interplay between them. Through a series of engaging and interactive sessions, participants explored the experiences of different countries, discovered innovative solutions and anticipated future challenges.  

With over 90 participants from 23 countries, this year’s Forum was a vibrant hub of knowledge and collaboration. Held at the Cartagena de Indias Convention Center, the event highlighted the crucial role of collective effort in advancing climate action. 

We invite you to review the Cartagena Forum session presentations and watch the sessions recordings here:

PMI Partnership Council Meeting 2024

Following the Global Knowledge Forum, the PMI Partnership Council Meeting was held in Cartagena on June 26. During the meeting, representatives from PMI and donor countries and the PMI Management team reviewed the PMI Annual Progress Report 2024, discussed the PMI Annual Workplan 2025, and exchanged views on strategic directions for the PMI in light of the fast-evolving demands.



PMI Workshops at Asia Climate Summit 2024

 October 22-24, 2024 – Delhi, India 

The PMI organized a half day workshop on “Creating an Enabling Environment for Enhanced Participation in International Carbon Markets” during the Asia Climate Summit 2024, which took place in New Delhi, India from October 22-24. The workshop brought together government representatives from eight countries in the region, as well as knowledge partners and other stakeholders. The session provided deep dives into key market readiness building blocks, such as host country strategies, policy framework and the required carbon market infrastructure. The presentations can be found here.

Additionally, PMI-India, in collaboration with the World Bank India Office, convened a roundtable discussion titled “Designing a Market Stability Reserve for the Indian Carbon Market”. The discussion aimed to gather insights from domestic and international experts, policymakers, regulators, and industry representatives to identify good practices and design considerations for an effective Market Stability Reserve (MSR) tailored to India’s specific context.

The PMI core work consists of engagements with countries committed to putting a price on carbon in their jurisdiction and fostering high-integrity international carbon markets. Since our last newsletter, our coverage across regions is growing, with more than 30 countries joining the PMI partnership and now receiving support from the program.

For more information on the PMI country-level readiness programs and targeted support activities, please have a glance at our PMI country program update from the Global Knowledge Forum here or visit our website. 

Public Launch of PMI Chile Program

Chile’s PMI program was officially launched to the Chilean public on October 9, during the Chile Carbon Forum. With over 200 people in the room, representatives from the implementing institutions Ministry of Energy, Ministry of Environment, and the Chilean International Cooperation Agency for Development (AGCID) as well as the World Bank discussed the opportunities and challenges at hand that the PMI country program will support and invited the broader Chilean carbon pricing and carbon market community to contribute their knowledge and viewpoints to the successful implementation of the program.

Unlocking the potential of carbon pricing in reducing emissions requires not only setting a clear policy direction. It also requires overcoming political economy challenges—often a delicate balancing of local concerns, industry interests, institutional capacities, and the prevailing political landscape.

“Balancing Act: the pursuit of Ambitious Carbon Pricing in Developing Countries” discusses how to navigate this complex path and more, and the strategies used to achieve them using several developing country case studies. 

Predictable carbon pricing can help attract private sector investment in cleaner technologies. In capital-intensive sectors like the power sector, both investors and policymakers need long-term plans for decarbonization based on clear and credible communication on carbon price evolution.

“Carbon Pricing in the Power Sector”  is a valuable resource to support policymakers in transforming their power sectors to be more reliable, green, and sustainable. The report draws from country experiences on global carbon pricing.

This second edition of “State and Trends of International Carbon Markets” reviews the status of the carbon market and delves into the bottlenecks currently impeding growth. The report provides an up-to-date over-view of existing and emerging carbon pricing instruments around the world, including international, national, and subnational initiatives. 

It also investigates trends surrounding the development and implementation of carbon pricing instruments and some of the drivers seen over the past year.

Read the Press Release: Global Carbon Pricing Revenues Top a Record $100 Billion

The World Bank has been tracking carbon markets for around two decades. The State and Trends of Carbon Pricing 2024, is it’s eleventh annual carbon pricing report. It was launched in May 2024. When the first report was released, carbon taxes and Emission Trading Systems (ETS) covered only 7% of the world’s emissions. According to the 2024 report, 24% of global emissions are now covered. Report findings show large middle-income countries including Brazil, India, Chile, Colombia, and Türkiye are making strides in carbon pricing implementation. 

Accelerating Sustainable and Clean Energy Access Transformation (ASCENT)

in Eastern and Southern Africa MPA

PMI is providing technical support to design and help integrate carbon finance in strategic World Bank operations, such as regional lending programs using “Multi-phase Programmatic Approaches” (MPAs). The MPA is an adaptive and programmatic approach that allows for a long, large, or complex engagement to be structured as a set of linked operations or phases, with intermediate shorter-term objectives contributing to an overall program development objective.

PMI support includes:

• Support developing the high quality “Energy Access Standard” that combines digital process flow, digital monitoring, reporting & verification (dMRV), streamline the Standard protocol and the scaled-up methodology.
• Develop and implement innovations for dMRV and other digital carbon infrastructure to enable aggregation and reduced transaction costs.
• Carbon Finance capacity building at regional & country levels.

Updates from the Climate Action Data (CAD) Trust

Compact with Africa – Green Business Fund (CwA-GBF) is an associated trust fund dedicated to supporting financial institutions and SMEs on climate action. The fund is designed to achieve this objective via three pillars: (i) policy dialogue and enabling environment, (ii) capacity building and technical assistance, and (iii) access to innovative financial instruments.

Addis Ababa, Ethiopia - June 19-20, 2024, hosted by CwA-GBF.

Kigali, Rwanda - June 25-26, 2024, hosted by CwA-GBF

Launch of New Activities Across Sectors and Partner Countries

Since our last newsletter, the CwA-GBF held a very successful call for proposals open to all teams working in Compact with Africa countries. After careful selection, eleven successful proposals were identified and are now underway. With these new allocations, the CwA-GBF will cover all eligible countries with activities ranging a number of sectors, from agriculture and natural resources management to green banking, energy access and transportation, contributing to green jobs and fostering of local and climate-smart SME value chains.

The call for proposal also demonstrated the strong demand for small grants that can help unlock financing and can be deployed rapidly and with little transaction costs, and that leverage World Bank operations and move the needle for SMEs.

The Partnership for Market Implementation (PMI) Facility supports countries in their efforts to accelerate global decarbonization aligned with their development priorities; with a two-fold objective (i) assisting client countries to design, pilot, and implement carbon pricing instruments and (ii) catalyzing the development of the next generation of carbon markets.  

Launched in 2021 as a 10-year program, the PMI provides technical assistance to over 30 countries to create the enabling environment and increase countries’ readiness for decision-making and implementation of carbon pricing policies, as well as building capacity to access carbon markets. The PMI is uniquely positioned to deliver in-country capacity development, as well as supporting the global carbon market architecture through strategic advice on carbon market strategies, institutional strengthening, policy design, and infrastructure development.  

PMI is supported by 11 donors: Australia, Canada, the European Commission, Finland, Germany, Japan, Norway, Spain, Sweden, Switzerland, and the United Kingdom. The PMI has partnered with several organizations to leverage and maximize its impact, bring technical expertise, and enhance its role as a knowledge sharing platform. Knowledge partners include global organizations such as the UN Climate Change Secretariat and the International Emissions Trading Association (IETA), as well as national institutions such as Singapore's National Climate Change Secretariat and Québec’s Ministry of the Environment and the Fight against Climate Change. The PMI is implemented in collaboration with World Bank Group regions, country management units, and global practices to leverage and support operations.

Partnership for Market Implementation (PMI), World Bank

For contributions to our newsletter, please reach out to us at:

pmiclimate@worldbank.org.