Welcome from the Program Manager, Pierre Guigon

As we wrap up 2025, PMI’s work with countries continued to grow and take shape. This newsletter shares a few recent highlights, including important milestones achieved with PMI support across several country programs and regional initiatives.

These efforts are supported by extensive knowledge work to build capacity for practitioners. Recently, we launched our first PMI Knowledge Series with a deep-dive webinar on the Climate Policy Assessment Tool (CPAT), and jointly supported the Sustainable Finance Knowledge Center (SFKC) with the International Finance Corporation (IFC) to equip financial institutions, corporations, and public-sector professionals across Africa with practical tools to manage sustainability risks and access climate and blended finance.

We are also pleased to share the PMI Annual Report 2025, which provides a comprehensive overview of this year’s achievements.

PMI also had a strong presence at COP30 in Belém, Brazil, through World Bank engagement and active participation from policymakers across PMI countries, with the program recognized under the Presidency’s Plan to Accelerate Solutions.

Thank you to our country clients, partners, and colleagues for your continued collaboration. We look forward to working together in 2026.

PMI Annual Report 2025 released

We are pleased to launch the PMI Annual Report 2025, covering both the PMI and its associated program, the Compact with Africa Green Business Fund (CwA-GBF).

In 2025, PMI expanded its engagement to 35 countries, with many programs progressing from readiness into early implementation to establish the policies and systems needed for carbon pricing and high-integrity carbon markets.

The report also highlights PMI’s advances in global knowledge, innovation and partnerships, that support coordinated, high-quality assistance to countries. Under CwA-GBF, the Facility continued to strengthen small and medium enterprises (SME) access to climate and blended finance across 14 African countries, helping build institutional credibility and unlock investment.

Read more or download the Annual Report

Recognition of PMI at COP30 on Advancing

Carbon Market Harmonization

The COP30 Presidency and Climate High-Level Champions have recognized the PMI as the lead initiative for the Plan to Accelerate Solutions under Action Group #23, focused on strengthening harmonization of carbon markets and carbon accounting standards globally. At the Ministerial launch of the Open Coalition on Compliance Carbon Markets on November 15, World Bank Climate Change Director Valerie Hickey delivered opening remarks emphasizing the importance of cooperation on carbon pricing and markets. She highlighted how shared guidance, toolkits, interoperable registry systems, and coordinated capacity building can enhance transparency and institutional capacity, mobilize investment for low-carbon transitions, and help countries develop credible carbon markets.

Announced at COP: Innovate4Climate (I4C) 2026 in Singapore

Innovate4Climate (I4C) 2026 will be in Singapore this year, during the week of May 18–21. The event is supported by the governments of Germany, Spain, and Singapore, and is delivered in collaboration with PMI knowledge partners including the International Emissions Trading Association (IETA) and the International Carbon Action Partnership (ICAP). The 2026 edition will focus on carbon pricing and carbon markets, featuring high-level plenaries, partner-led workshops, and a dynamic marketplace to enable engagement and matchmaking among participants. Registration is expected to open in early 2026. Follow the I4C LinkedIn channel for updates

PMI launched its China program in September at the Global Workshop on Advancing Carbon Pricing in Shanghai, co-hosted with the Ministry of Ecology and Environment. The program supports China in strengthening its comprehensive carbon pricing architecture, following the inclusion of carbon markets in its newly revised NDC.

China’s national Emissions Trading System (ETS) currently covers about 60 percent of emissions, with plans to expand coverage, introduce absolute caps in selected sectors, and prepare for future allowance auctioning. PMI’s support will focus on pathways to the dual-carbon goals, enhancements to the ETS and the China Certified Emission Reduction (CCER) program, and improvements to monitoring, reporting and verification (MRV), trading, and data systems. Learn more about PMI in China

Cambodia has committed to developing a roadmap for carbon market participation with support from PMI, advancing its 2050 carbon neutrality goal and preparing for future engagement in mechanisms such as an emissions trading system and Article 6. A kick-off workshop for the PMI Cambodia program—held in Phnom Penh in September and co-organized with the Ministry of Environment—brought together around 80 participants from government and the private sector to outline priorities for readiness.

As part of the program, the PMI task team has begun two national assessments: one on the potential impacts of carbon pricing, and another on barriers to participating in crediting markets. These assessments will help identify institutional and technical gaps and inform an evidence-based roadmap for voluntary and Article 6 markets. Discussions highlighted the need to strengthen monitoring, reporting and verification (MRV) and registry systems to mobilize private investment and support sustainable, low-carbon growth. Learn more about PMI in Cambodia

PMI recently concluded its Just in Time engagement in Azerbaijan, which focused on assessing carbon pricing options and engagement in international carbon markets under the Paris Agreement. The work produced two key reports: one evaluating existing carbon price incentives, potential new instruments, and the country’s exposure to the EU Carbon Border Adjustment Mechanism (CBAM); and another identifying institutional and technical gaps for future engagement under Article 6.

To support implementation, the Ministry of Ecology and Natural Resources, Ministry of Economy, and Ministry of Energy participated in a workshop focused on capacity-building and coordination on carbon pricing design. The findings will help inform Azerbaijan’s policy planning and readiness for international cooperation. Learn more about PMI in Azerbaijan

PMI recently commenced a Just in Time engagement in Uzbekistan to help the government prepare to implement a potential carbon tax. In October, the PMI convened a multi-stakeholder workshop through the Ministry of Economy and Finance and the Ministry of Ecology to discuss the economic impacts and potential co-benefits of carbon pricing as well as potential exposure to the EU CBAM. The PMI support will build on this workshop to provide additional guidance to support carbon pricing, including building on recently passed legislation that establishes a greenhouse gas emissions reporting system. Learn more about PMI in Uzbekistan

In conjunction with ICAP, PMI delivered a week-long technical training on ETS in October. The session brought together representatives from the newly established Extraordinary Secretariat for the Carbon Market (Ministry of Finance) and the Department of Market Instruments and REDD+ (Ministry of Environment and Climate Change) to build a shared understanding of core ETS design elements, governance structures, and operational requirements. Policymakers from the EU, UK, California, and Québec contributed practical insights from their own market experience.

The creation of the Extraordinary Secretariat enables Brazil to advance the regulatory and technical preparations needed for a future national ETS while a permanent management body is established. This work underscores Brazil’s commitment to using market-based instruments to achieve its climate goals. Learn more about PMI in Brazil

Latin America and the Caribbean:

Forging a Path to Regional Carbon Markets

In October, the PMI Chile program brought together government representatives from Chile, Mexico, Panama, Colombia, Brazil, and the Dominican Republic in Viña del Mar, Chile, for a regional dialogue on strengthening carbon pricing and carbon markets. With the goal of fostering regional South-South cooperation, the PMI Chile team facilitated the two-day exchange focused on peer-to-peer learning, with delegates discussing national experiences, upcoming policy developments, and opportunities for collaboration. The meeting initiated work toward a regional roadmap, with participants outlining priority areas and next steps for continued cooperation and a vision of stronger regional carbon market alignment.

Before the dialogue, delegates attended the Chile Carbon Forum in Santiago—Chile’s largest carbon market event, drawing more than 1,300 participants. This provided an opportunity to share insights with a wider audience, including through a panel discussion on regional lessons and emerging challenges.

PMI Knowledge Series

Deep-Dive on the Climate Policy Assessment Tool (CPAT)

PMI launched its new PMI Knowledge Series with a deep-dive webinar on the Climate Policy Assessment Tool (CPAT)—the joint World Bank–IMF model that supports rapid, country-level assessment of climate policy reforms, including carbon pricing and fossil fuel subsidy reforms. The session provided an overview of CPAT’s core features and demonstrated how it can inform policy dialogue across a range of reform pathways. Presenters also highlighted recent enhancements that expand the tool’s applicability to ETS, further strengthening its relevance for countries designing or refining market-based instruments. The webinar concluded with a live demonstration, giving participants practical insights into how CPAT can be used to assess distributional, environmental, and fiscal impacts in real-world settings.

Watch the webinar recording and view the presentation slides

Malaysia: Advancing Regional Dialogue on Carbon Markets

The PMI team participated in the Malaysia Carbon Markets Forum (MCMF) in Kuala Lumpur in October, organized by Bursa Malaysia/BCX alongside IGEM. The forum convened government representatives, private sector actors, registry operators, and international partners from across ASEAN to advance discussions on the ASEAN Common Carbon Framework and regional policy coordination. The event also strengthened collaboration across ASEAN and supported ongoing efforts to align national policy frameworks and market infrastructure.

On the side of the MCMF2025 and to support deeper private sector engagement, PMI also joined a dialogue convened by IETA’s Business-PMI activities. The dialogue also brought together a comprehensive group of stakeholders and connected government officials, industry leaders, financial institutions, and project developers, helping advance Malaysia’s carbon market and pricing framework.

Singapore: Driving Investment in Asia–Pacific Carbon Markets

The PMI team participated in the Singapore Carbon Markets and Investor Forum in October, which convened senior leaders from government, finance, and industry to accelerate investment and strengthen carbon markets across the Asia–Pacific region. Discussions focused on emerging market dynamics, the role of reductions, removals, and avoidance, and the implications of mechanisms such as the EU Carbon Border Adjustment Mechanism (CBAM), Article 6, and CORSIA.

The Compact with Africa—Green Business Fund (CwA-GBF) is a PMI-associated trust fund dedicated to supporting small and medium enterprises (SMEs) in boosting development with positive climate impacts along with country partners in the Compact with Africa G20 initiative. The fund achieves these objectives through policy dialogue, fostering an enabling environment, capacity building, technical assistance, and in designing and piloting innovative financial instruments.

Launch of the new Sustainable Finance Knowledge Center (SFKC) website

A key milestone this year was the launch of the new Sustainable Finance Knowledge Center (SFKC) website—a virtual platform developed with the World Bank, IFC, and partners to equip financial institutions, corporations, and public-sector professionals across Africa with practical tools, training, and curated resources on sustainable finance. The new website provides centralized access to guidance on climate risk management, ESG integration, sustainable financial products, and good practices from across the continent. Explore the platform

Training continues: The SFKC also continues to host training programs for financial institutions and private-sector practitioners. Recent cohorts focused on strengthening capacity in sustainable finance fundamentals and ESG integration across multiple African markets, with tailored sessions for banking institutions, including a dedicated program for Benin’s banking sector. These trainings aim to help financial actors prepare pipelines of green investments and adopt practices aligned with international standards.

The Partnership for Market Implementation Facility is an umbrella program managed by the World Bank that supports more than 50 countries in putting in place the policies and financing solutions needed to unlock climate finance and translate it into investment and economic gains. The Facility includes the anchor PMI trust fund, which helps countries design and operationalize carbon pricing and market instruments, and the associated Compact with Africa Green Business Fund (CwA-GBF), which strengthens the institutional credibility of small and medium enterprises in Africa to access climate and blended finance. Established in 2021, the Facility is supported by 11 development partners: Australia, Canada, the European Commission, Finland, Germany, Japan, Norway, Spain, Sweden, Switzerland, and the United Kingdom.

Partnership for Market Implementation (PMI), World Bank

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

pmiclimate@worldbank.org.