The World Bank’s Partnership for Market Implementation (PMI) assists countries to design, pilot, and implement carbon pricing instruments aligned with their development priorities. As part of this, the PMI (and previously the Partnership for Market Readiness) has produced handbooks and guidance documents to help share knowledge and to assist policymakers and others understand key issues relating to the design and implementation of carbon pricing. Below a non-exhaustive list of useful reports and guidance documents. Additional resources are available at https://pmiclimate.org/knowledge-centre.
Guidance Documents
Governance of Emissions Trading Systems (2022)
Emissions trading continues to expand as a flexible policy response to climate change. Its implementation raises complex governance challenges, however, and calls for robust institutional, regulatory and procedural frameworks.
Emissions Trading in Practice, Second Edition: A Handbook on Design and Implementation (2021)
Currently, about 46 national jurisdictions and 35 cities, states, and regions — representing almost a quarter of global greenhouse gas (GHG) emissions
Carbon Pricing Assessment and Decision-Making: A Guide to Adopting a Carbon Price (2021)
Many countries and subnational jurisdictions are considering putting a price on carbon to help reduce greenhouse gas (GHG) emissions and achieve their climate commitments.
A Guide to Developing Domestic Carbon Crediting Mechanisms (2021)
Carbon crediting refers to the process of issuing emissions reduction units to project activities in recognition of quantified emissions reductions
Carbon Tax Guide: A Handbook for Policy Makers (2017)
Adopting a carbon tax is a significant policy decision, and careful consideration and planning will help ensure the tax is successful in achieving its goals.
Guide to Communicating Carbon Pricing (2018)
Adopting a carbon tax is a significant policy decision, and careful consideration and planning will help ensure the tax is successful in achieving its goals.
Beyond Mitigation: Quantifying the Development Benefits of Carbon Pricing (2021)
Carbon pricing can reduce emissions cost-effectively, and it can also generate a number of other benefits. This guide provides an overview of these benefits to help policy
Using carbon revenues (2019)
Carbon pricing is increasingly recognized as an important source of government revenue. If used wisely, carbon revenues can support further climate mitigation, industry competitiveness, and pursuit of further economic and development objectives
The bottom-up approach of the Paris Agreement means that countries have the flexibility to design approaches that work for them. The Climate Market Club intends to provide a platform for them to share experiences, learn from each other, and enhance domestic policy approaches for driving low-carbon investments through it. Below is a summary of key Article 6 Approach Papers and other relevant reports.
Article 6 Approach Papers
Ensuring environmental integrity is recognized as an important goal under Article 6. This paper examines factors that affect environmental integrity under Article 6 of the Paris Agreement, and identifies practical approaches for implementing the
Unlike the Kyoto protocol’s clean development mechanism (CDM), Article 6.2 of the Paris Agreement is designed to allow for international cooperation in carbon markets through decentralized governance. Under this article, bilateral or plurilateral
This approach paper examines the role of additionality for environmental integrity under Article 6.2 approaches. It analyzes the relevance of additionality determination methods from market mechanisms including Joint Implementation (JI), Clean
The policy framework is intended to provide the minimum legal foundation required to give Parties (including private sector entities) the necessary certainty regarding their rights and obligations as participants to the cooperative approach,
The Clean Development Mechanism (CDM) under the Kyoto Protocol has seen the development of over 250 project-based methodologies for establishing baseline emissions, assessing additionality, monitoring project activities, and measuring &
The Kyoto Protocol has provided a common framework for greenhouse gas (GHG) accounting through its internationally governed market-based approaches. On the other hand, the Paris Agreement is not calling for the establishment of one centrally
The objective of this paper is to develop guidance for host countries on assessing and choosing their approach to participation in Cooperative Approaches of Article 6 of the Paris Agreement. The main audience is government officials in charge of
Every country has mitigation opportunities in different sectors with varying costs depending on several factors such as the maturity of technologies, access to finance, policy support, and natural resources available. A country can plan its
To learn more about carbon pricing, check out the following links with informative contents on carbon pricing initiatives:
Other resources
OECD and World Bank: FASTER principles for successful carbon pricing
http://hdl.handle.net/10986/22641
OECD Effective Carbon Rates 2023
https://www.oecd.org/tax/tax-policy/effective-carbon-rates-2023.htm
Partnership for Market Implementation (PMI) Knowledge Center
https://pmiclimate.org/knowledge-centre