Financing the Low-Carbon Transition
What is our vision?
Accelerate sustainable development by enhancing climate action and ambition thorough sound policy design and the use of carbon pricing instruments.
The Climate Warehouse is within the World Bank’s Carbon Markets and Innovation unit. The CMI aims to help client countries leverage climate markets and carbon pricing to increase the resources mobilized towards NDC implementation and enhancement of global climate ambition.
To fulfil this objective, CMI carries out a broad program of interrelated activities:
- Performs advocacy work through the Carbon Pricing Leadership Coalition (CPLC), convening leaders from government, business, and civil society to support the introduction of carbon pricing, share experiences, and enhance understanding of the emerging practices in the implementation of carbon pricing instruments.
- Develops and pilots concepts and products and assists client countries in implementing them through the Networked Carbon Markets (NCM) initiative, the Climate Warehouse’s Operationalizing Article 6 work stream and the Partnership for Market Implementation (PMI)
- Produces analytical outcomes that condense lessons learnt and inform the above mentioned activities, such as the flagship report State & Trends of Carbon Pricing.
- Disseminates its work through outreach events like Innovate4Climate and the Regional Climate Weeks
These pilots form the basis for dialogue with governments on key institutional and capacity building requirements that need to be met for decision-making on Article 6. Together, this range of services will support our client countries’ participation in the next generation of climate markets, including capacity building and the development of institutional and governance processes.
How We Work
The Climate Warehouse work program has initiated analytical and piloting work to kickstart the operationalization of Article 6 through learning-by-doing to ensure that climate markets can be rapidly scaled up when the Paris Agreement becomes effective in 2020.
The objective is to produce analytical and technical outputs to enable participation in Article 6 transactions by the WB’s client countries and shape the next generation of climate markets.
The Bank has four complementary work streams as shown in the chart below:
The MDB Working Group was established to harmonize approaches toward climate markets. In addition to the World Bank Group (IBRD, IFC, MIGA), the group includes ADB, AfDB, EIB, EBRD, IDB, and IsDB.
The Advisory Group consists of 3 donor governments, 3 project implementing entities, and 20 private sector companies, and has been constituted to periodically provide inputs toward the work program and guide its development.
Convened by International Emissions Trading Association (IETA) and the World Bank, the Working Group explores opportunities to streamline and harmonize process flows for creating and transferring assets in order to reduce transaction costs. The members include the American Carbon Registry, Architecture for REDD+ Transactions; Climate Action Reserve; Gold Standard; Verra; and Global Carbon Council.