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The Paris Agreement recognizes that Parties may engage in climate markets through decentralized, bilateral cooperative approaches to achieve their nationally determined contributions (NDCs). However, climate markets trade different units, have differences in governance rules, and operate under different technological systems. The differences in these processes constrain market integration and add to the complexity of conducting transactions. Under the Paris Agreement, which relies on a decentralized approach to markets, climate negotiators are still determining whether a centralized infrastructure, such as the International Transaction Log under the Kyoto Protocol, should continue to facilitate communication between registries. Consistent with the bottom-up ethos of the Paris Agreement, the World Bank simulated a Climate Warehouse meta-registry to demonstrate the potential of a decentralized IT approach to link registry systems. This webinar will showcase findings from the simulation as a first step towards exploring the potential of blockchain for sharing and tracking climate markets data across systems and building trust in decentralized climate markets.
Under Article 6 of the Paris Agreement, there is a significant opportunity for countries to cooperate through the use of climate markets. It is estimated that Article 6, if implemented well, could halve the total cost of implementing countries’ nationally determined contributions (NDCs). COP 24, held in Poland at the end of 2018, adopted the “Paris Rulebook” to define the rules and procedures for implementing the Paris Agreement. However, there was a lack of agreement on Article 6, and related decisions were deferred to COP 25 this year. The World Bank has initiated a broad program of activities to support Article 6 of the Paris Agreement, and engages in wide consultations to develop a targeted strategy to operationalize Article 6. This webinar will present the World Bank’s strategy for catalyzing the next generation of climate markets, and provide a deep-dive into the World Bank’s Climate Warehouse initiative.
Carbon Pricing, an instrument that reduces GHG emissions, also drives technological innovation necessary to mitigate climate change and foster low carbon development. Market based carbon pricing instruments, such as emissions trading schemes, often face challenges around data collection, transparency processing and analysis that make conducting transaction across different systems quite complex. Adoption of Blockchain, Big Data, Internet of Things (IoT) and other Disruptive Technologies holds the promise of addressing the needs of new generation climate-markets to develop, manage and harmonize information of GHG mitigation actions across multiple industry sectors and governmental jurisdictions. It also provides data sharing with transaction management elements well aligned with the requirements of the post 2020 climate markets. On the contours of ‘Blockchain and Emerging Digital Technologies for Enhancing Post-2020 Climate Markets’ report, this webinar will commence with a brief overview of the existing technologies and practices in the climate markets, to then deep-dive into how Blockchain, as an emerging technology will enhance the development of next generation of climate- markets.
The World Bank and its partners, including Singapore, presented the Climate Action Data Trust (CADT) at the Asia Climate Summit (ACS). Climate Action Data Trust (CAD Trust) is a joint initiative of IETA, The World Bank, and the Singapore government, along with a variety of governments and public and private organizations. CAD Trust will provide an open-source metadata system to share information about carbon credits and projects across digital platforms, easing future integration of multiple registry systems. The event will introduce the CAD Trust and present the vision behind the Initiative.
This video compiles the highlights of the official presentation of the Climate Action Data Trust, which took place at the Asia Climate Summit in Singapore on December 7, 2022.
This event will provide an update on Multilateral Development Banks' key initiatives to support the operationalization of Article 6.
World Bank side event at COP27 to learn about the Digital For Climate (D4C), a collaboration between the EBRD, UNDP, UNFCCC, and WB that aims to coordinate respective workflows and create a modular and interoperable end-to-end digital ecosystem for the carbon market.
The World Bank’s Climate Warehouse team hosted a webinar “Climate Warehouse: End-to-End Digital Ecosystem for Carbon Markets”, together with International Emissions Trading Association (IETA), on September 15th, 2022. The event received 530+ RSVPs and 350 participants. Due to the high demand and follow-up questions from the participants, the Climate Warehouse Secretariat has prepared this post-event insights e-mail to provide additional information and resources (including presentations, Q&A and the recording of the webinar).
Putting a price on carbon, either through a domestic carbon pricing instrument or international carbon markets, will play an important role in driving innovation across sectors and facilitating an orderly transition towards low carbon by addressing market failures. While the current bottom-up development of carbon pricing and international carbon markets promote innovation, the diversity of approaches reduces transparency between climate actions and increases the complexity of market integration. This in turn reduces visibility over existing and future carbon prices, as well as acts as a barrier to making finance flow to support climate actions. In this context, the World Bank has been exploring an approach for the consolidation of carbon pricing information. A consolidated price would then be benchmarked as a “spread” against a global target price corridor that is consistent with the Paris Agreement. The objective of this webinar is to present the proposed consolidation methodology that the World Bank has developed and to discuss how it can be refined and leveraged to support multiple purposes.
The purpose of this meeting was to review the state of play in Article 6 discussion and explore ongoing efforts to pilot and promote readiness for markets under the Paris Agreement in the Asia-Pacific region.
Future climate markets will differ substantially from those we have today; how will they look after 2020? How can cooperation in climate markets be designed to help countries with their climate plans? The changing landscape of climate markets under the Paris Agreement resulted in a big push for innovative solutions and provide opportunities to leverage emerging technologies to support the post-2020 architecture for markets. This session will bring together different technology and climate experts to explore how innovative technology applications could support the long-term vision to develop broad, deep and liquid climate markets.
Future climate markets will differ substantially from those we have today; how will they look after 2020? How can cooperation in climate markets be designed to help countries with their climate plans?
The achievement of countries’ Nationally Determined Contributions (NDC) under the Paris Agreement will require massive domestic and international financial resources. With limited public and concessional finance available, there is a need to leverage private capital. Carbon markets and carbon pricing offer the opportunity to mobilize resources from the private sector, reduce the burden of NDC implementation and increase global ambition. Putting a price on carbon, either through a domestic carbon pricing instrument or international carbon markets, could play an important role in driving innovation across sectors and facilitating an orderly transition. While the current bottom-up development of carbon pricing and carbon markets promote innovation, the diversity of approaches reduces transparency between climate actions and increases the complexity of market integration. This in turn reduces financial sectors visibility over existing and future carbon prices, as well as acts as a barrier to making finance flow to support climate actions. To fully realize this potential, links are required to the wider context of the global carbon pricing landscape. In this context, the World Bank is considering a methodology for constructing and overseeing a consolidation of global carbon pricing information and eventually benchmarking this as a spread against a recognized Net Zero target and associated carbon pricing that would be needed. Such a carbon price spread could result in a price signal to market participants and other stakeholders, support carbon pricing policy development and inform market cooperation and linkage of different carbon pricing schemes and serve as a basis for the financial sector to develop financial products and funds. The objective of this BBL was therefore to present the proposed approach and brainstorm on how it can be refined and leveraged to support multiple purposes, including eventually becoming a benchmark for global-level carbon prices.
Under the Paris Agreement, the international community has committed to a process aimed at a continuous increase in the ambition of climate action towards achievement of common temperature stabilization goals. Yet the Paris Agreement also leaves it to countries to determine themselves how to operationalize such ambition, both in terms of form and quantity. Heterogeneity of climate action is therefore an inevitability and with it the potential for continued asymmetry. What such heterogeneity also gives rise to is the specter of emissions leakage. For jurisdictions in the process of strengthening their domestic climate efforts to better align with international commitments and the recommendations of climate science, policy debates inevitably extend to the threat of leakage and potential impacts on competitiveness, employment and investment. New ways to level the playing field and avoid carbon leakage need to be found, with different objectives sometimes. Applying a Carbon Border Adjustment Mechanism (CBAM - Border Carbon Adjustment Mechanism) is one approach currently under definition that has been put forward by the European Commission. An alternative approach is found in California cap-and- trade system, that has a Border Carbon Adjustment (BCA) in place for the electricity and energy sectors which is the only example of an existing BCA, albeit one applied in the US between US states. This BBL discussed the different options and proposals currently on the table for BCA, political controversies of this approach, concerns about WTO compatibility, potential impact on trade flows and economic growth and design challenges.
Future climate markets will differ substantially from those we have today; how will they look after 2020? How can cooperation in climate markets be designed to help countries with their climate plans? The implementation of Article 6 of the Paris Agreement could create an opportunity for new and innovative approaches for climate action. Against this backdrop, the World Bank has developed a tool to help countries better understand the opportunities and risks of participating in Article 6 of the Paris Agreement, and facilitate a consensus-driven, informed decision-making process. This webinar will bring together the World Bank and its partners to share key lessons from pilot assessments of countries’ readiness for post-2020 climate markets.
The Paris Agreement recognizes that Parties may engage in climate markets through decentralized, bilateral cooperative approaches to achieve their nationally determined contributions (NDCs). However, climate markets trade different units, have differences in governance rules, and operate under different technological systems. The differences in these processes constrain market integration and add to the complexity of conducting transactions. Under the Paris Agreement, which relies on a decentralized approach to markets, climate negotiators are still determining whether a centralized infrastructure, such as the International Transaction Log under the Kyoto Protocol, should continue to facilitate communication between registries. Consistent with the bottom-up ethos of the Paris Agreement, the World Bank simulated a Climate Warehouse meta-registry to demonstrate the potential of a decentralized IT approach to link registry systems. This webinar will showcase findings from the simulation as a first step towards exploring the potential of blockchain for sharing and tracking climate markets data across systems and building trust in decentralized climate markets.
Under Article 6 of the Paris Agreement, there is a significant opportunity for countries to cooperate through the use of climate markets. It is estimated that Article 6, if implemented well, could halve the total cost of implementing countries’ nationally determined contributions (NDCs). COP 24, held in Poland at the end of 2018, adopted the “Paris Rulebook” to define the rules and procedures for implementing the Paris Agreement. However, there was a lack of agreement on Article 6, and related decisions were deferred to COP 25 this year. The World Bank has initiated a broad program of activities to support Article 6 of the Paris Agreement, and engages in wide consultations to develop a targeted strategy to operationalize Article 6. This webinar will present the World Bank’s strategy for catalyzing the next generation of climate markets, and provide a deep-dive into the World Bank’s Climate Warehouse initiative.
Carbon Pricing, an instrument that reduces GHG emissions, also drives technological innovation necessary to mitigate climate change and foster low carbon development. Market based carbon pricing instruments, such as emissions trading schemes, often face challenges around data collection, transparency processing and analysis that make conducting transaction across different systems quite complex. Adoption of Blockchain, Big Data, Internet of Things (IoT) and other Disruptive Technologies holds the promise of addressing the needs of new generation climate-markets to develop, manage and harmonize information of GHG mitigation actions across multiple industry sectors and governmental jurisdictions. It also provides data sharing with transaction management elements well aligned with the requirements of the post 2020 climate markets. On the contours of ‘Blockchain and Emerging Digital Technologies for Enhancing Post-2020 Climate Markets’ report, this webinar will commence with a brief overview of the existing technologies and practices in the climate markets, to then deep-dive into how Blockchain, as an emerging technology will enhance the development of next generation of climate- markets.
The World Bank and its partners, including Singapore, presented the Climate Action Data Trust (CADT) at the Asia Climate Summit (ACS). Climate Action Data Trust (CAD Trust) is a joint initiative of IETA, The World Bank, and the Singapore government, along with a variety of governments and public and private organizations. CAD Trust will provide an open-source metadata system to share information about carbon credits and projects across digital platforms, easing future integration of multiple registry systems. The event will introduce the CAD Trust and present the vision behind the Initiative.
This video compiles the highlights of the official presentation of the Climate Action Data Trust, which took place at the Asia Climate Summit in Singapore on December 7, 2022.
This event will provide an update on Multilateral Development Banks' key initiatives to support the operationalization of Article 6.
World Bank side event at COP27 to learn about the Digital For Climate (D4C), a collaboration between the EBRD, UNDP, UNFCCC, and WB that aims to coordinate respective workflows and create a modular and interoperable end-to-end digital ecosystem for the carbon market.
The World Bank’s Climate Warehouse team hosted a webinar “Climate Warehouse: End-to-End Digital Ecosystem for Carbon Markets”, together with International Emissions Trading Association (IETA), on September 15th, 2022. The event received 530+ RSVPs and 350 participants. Due to the high demand and follow-up questions from the participants, the Climate Warehouse Secretariat has prepared this post-event insights e-mail to provide additional information and resources (including presentations, Q&A and the recording of the webinar).
Putting a price on carbon, either through a domestic carbon pricing instrument or international carbon markets, will play an important role in driving innovation across sectors and facilitating an orderly transition towards low carbon by addressing market failures. While the current bottom-up development of carbon pricing and international carbon markets promote innovation, the diversity of approaches reduces transparency between climate actions and increases the complexity of market integration. This in turn reduces visibility over existing and future carbon prices, as well as acts as a barrier to making finance flow to support climate actions. In this context, the World Bank has been exploring an approach for the consolidation of carbon pricing information. A consolidated price would then be benchmarked as a “spread” against a global target price corridor that is consistent with the Paris Agreement. The objective of this webinar is to present the proposed consolidation methodology that the World Bank has developed and to discuss how it can be refined and leveraged to support multiple purposes.
The purpose of this meeting was to review the state of play in Article 6 discussion and explore ongoing efforts to pilot and promote readiness for markets under the Paris Agreement in the Asia-Pacific region.
Future climate markets will differ substantially from those we have today; how will they look after 2020? How can cooperation in climate markets be designed to help countries with their climate plans? The changing landscape of climate markets under the Paris Agreement resulted in a big push for innovative solutions and provide opportunities to leverage emerging technologies to support the post-2020 architecture for markets. This session will bring together different technology and climate experts to explore how innovative technology applications could support the long-term vision to develop broad, deep and liquid climate markets.
Future climate markets will differ substantially from those we have today; how will they look after 2020? How can cooperation in climate markets be designed to help countries with their climate plans?
The achievement of countries’ Nationally Determined Contributions (NDC) under the Paris Agreement will require massive domestic and international financial resources. With limited public and concessional finance available, there is a need to leverage private capital. Carbon markets and carbon pricing offer the opportunity to mobilize resources from the private sector, reduce the burden of NDC implementation and increase global ambition. Putting a price on carbon, either through a domestic carbon pricing instrument or international carbon markets, could play an important role in driving innovation across sectors and facilitating an orderly transition. While the current bottom-up development of carbon pricing and carbon markets promote innovation, the diversity of approaches reduces transparency between climate actions and increases the complexity of market integration. This in turn reduces financial sectors visibility over existing and future carbon prices, as well as acts as a barrier to making finance flow to support climate actions. To fully realize this potential, links are required to the wider context of the global carbon pricing landscape. In this context, the World Bank is considering a methodology for constructing and overseeing a consolidation of global carbon pricing information and eventually benchmarking this as a spread against a recognized Net Zero target and associated carbon pricing that would be needed. Such a carbon price spread could result in a price signal to market participants and other stakeholders, support carbon pricing policy development and inform market cooperation and linkage of different carbon pricing schemes and serve as a basis for the financial sector to develop financial products and funds. The objective of this BBL was therefore to present the proposed approach and brainstorm on how it can be refined and leveraged to support multiple purposes, including eventually becoming a benchmark for global-level carbon prices.
Under the Paris Agreement, the international community has committed to a process aimed at a continuous increase in the ambition of climate action towards achievement of common temperature stabilization goals. Yet the Paris Agreement also leaves it to countries to determine themselves how to operationalize such ambition, both in terms of form and quantity. Heterogeneity of climate action is therefore an inevitability and with it the potential for continued asymmetry. What such heterogeneity also gives rise to is the specter of emissions leakage. For jurisdictions in the process of strengthening their domestic climate efforts to better align with international commitments and the recommendations of climate science, policy debates inevitably extend to the threat of leakage and potential impacts on competitiveness, employment and investment. New ways to level the playing field and avoid carbon leakage need to be found, with different objectives sometimes. Applying a Carbon Border Adjustment Mechanism (CBAM - Border Carbon Adjustment Mechanism) is one approach currently under definition that has been put forward by the European Commission. An alternative approach is found in California cap-and- trade system, that has a Border Carbon Adjustment (BCA) in place for the electricity and energy sectors which is the only example of an existing BCA, albeit one applied in the US between US states. This BBL discussed the different options and proposals currently on the table for BCA, political controversies of this approach, concerns about WTO compatibility, potential impact on trade flows and economic growth and design challenges.
Future climate markets will differ substantially from those we have today; how will they look after 2020? How can cooperation in climate markets be designed to help countries with their climate plans? The implementation of Article 6 of the Paris Agreement could create an opportunity for new and innovative approaches for climate action. Against this backdrop, the World Bank has developed a tool to help countries better understand the opportunities and risks of participating in Article 6 of the Paris Agreement, and facilitate a consensus-driven, informed decision-making process. This webinar will bring together the World Bank and its partners to share key lessons from pilot assessments of countries’ readiness for post-2020 climate markets.
The Paris Agreement recognizes that Parties may engage in climate markets through decentralized, bilateral cooperative approaches to achieve their nationally determined contributions (NDCs). However, climate markets trade different units, have differences in governance rules, and operate under different technological systems. The differences in these processes constrain market integration and add to the complexity of conducting transactions. Under the Paris Agreement, which relies on a decentralized approach to markets, climate negotiators are still determining whether a centralized infrastructure, such as the International Transaction Log under the Kyoto Protocol, should continue to facilitate communication between registries. Consistent with the bottom-up ethos of the Paris Agreement, the World Bank simulated a Climate Warehouse meta-registry to demonstrate the potential of a decentralized IT approach to link registry systems. This webinar will showcase findings from the simulation as a first step towards exploring the potential of blockchain for sharing and tracking climate markets data across systems and building trust in decentralized climate markets.
Under Article 6 of the Paris Agreement, there is a significant opportunity for countries to cooperate through the use of climate markets. It is estimated that Article 6, if implemented well, could halve the total cost of implementing countries’ nationally determined contributions (NDCs). COP 24, held in Poland at the end of 2018, adopted the “Paris Rulebook” to define the rules and procedures for implementing the Paris Agreement. However, there was a lack of agreement on Article 6, and related decisions were deferred to COP 25 this year. The World Bank has initiated a broad program of activities to support Article 6 of the Paris Agreement, and engages in wide consultations to develop a targeted strategy to operationalize Article 6. This webinar will present the World Bank’s strategy for catalyzing the next generation of climate markets, and provide a deep-dive into the World Bank’s Climate Warehouse initiative.
Carbon Pricing, an instrument that reduces GHG emissions, also drives technological innovation necessary to mitigate climate change and foster low carbon development. Market based carbon pricing instruments, such as emissions trading schemes, often face challenges around data collection, transparency processing and analysis that make conducting transaction across different systems quite complex. Adoption of Blockchain, Big Data, Internet of Things (IoT) and other Disruptive Technologies holds the promise of addressing the needs of new generation climate-markets to develop, manage and harmonize information of GHG mitigation actions across multiple industry sectors and governmental jurisdictions. It also provides data sharing with transaction management elements well aligned with the requirements of the post 2020 climate markets. On the contours of ‘Blockchain and Emerging Digital Technologies for Enhancing Post-2020 Climate Markets’ report, this webinar will commence with a brief overview of the existing technologies and practices in the climate markets, to then deep-dive into how Blockchain, as an emerging technology will enhance the development of next generation of climate- markets.
Videos
