“Shaping the Next Generation of Carbon Markets”

Fifth Assessment Report (2013) of Intergovernmental Panel on Climate Change (IPCC) underlines the necessity to limit the average temperature rise to 2° above the pre-industrial levels in order to ensure safe continuity of existence of human beings and other living things on earth. The Report also highlights the necessity for maximum efforts by all counties in order to reduce greenhouse gas emissions by 2030 for the purpose of preventing irreversible effects of climate change; and it states that any postponement in the emission reduction in and after 2030 would lower the possibility of limiting temperature rise to 2° temperature and also increase the costs to be incurred to reduce emissions and perform climate change adaptation activities. Furthermore, Paris Agreement, an outcome of the 21st Paris Climate Conference (COP21) held in 2015, stipulates that states will develop their emission reduction policies so as to limit the greenhouse emission rates to ° 2 ° C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 °C.

Given the fact that developing countries will constitute 65% of the global energy demand in 2040 and rapidly increasing population and urbanization rates in these countries, these countries are believed to play a critical role in efforts to pursue the target of limiting the global temperature change to 1.5-2°. Originating from Kyoto Protocol, new climate regime also encourages developing countries, in addition to the developed ones, to reduce emission rates in a decisive manner.

Launched by the World Bank in 2011, Partnership for Market Readiness (PMR) is a technical assistance program aiming at supporting developing countries which have significant importance in the global fight against climate change in their efforts to reduce greenhouse gas emission, through effective use of market-based instruments (MBIs).

PMR Aims at

  • Encouraging market-based approaches in reducing greenhouse gas emissions
  • Encouraging innovative carbon pricing instruments
  • Serving as a platform for technical discussions
  • Providing innovative and collective approach for market instruments
  • Sharing its experiences with international community including the parties of United Nations Framework Convention on Climate Change.

PMR Implementing Countries:

Each PMR Implementing Country identifies the objective and the related activities under the PMR Country Project in line with their national interests and needs. Below is a summary of what each country aims to achieve nationally.

 Argentina explores the choice of policy instruments that support meeting mitigation objectives of its NDC, such as assessing renewable energy and energy efficiency certificates trading and scoping out RBF approaches in key sectors.
u1The PMR supports Brazil to explore various carbon pricing instruments by carrying out analytical studies on alternative policy design options, assessing their impacts, and building modelling capacity.
siliThe PMR supports preparation and implementation of a carbon tax in Chile. PMR activities also include capacity building activities in the public and private sectors for the design and implementation of an MRV framework and GHG registry.
cinnPMR funding supports the design and implementation of key building blocks for China’s national ETS, with particular focus on inclusion of the electricity sector and state-owned enterprises.Designing the national emissions trading scheme by focusing on the electricity sector and publicly owned businesses.
kolombiya_bayragiThe PMR supports Colombia to develop crediting NAMAs in the transport sector as well as a domestic offset scheme. Colombia is also working on the introduction of vehicle performance standards.
kosta_rika_buyukThe PMR supports the development of a domestic carbon market by stimulating demand through promotion of voluntary actions and assessment of regulatory instruments, and fostering supply.
hindistan_buyukDeveloping centralized GHG data management system that can support various market- based instruments (MBIs) that could be integrated with the national GHG inventory.
endonezyaPMR funding in Indonesia is used to explore possible suitable carbon pricing or market-based instruments to achieve mitigation as well as to design an MRV framework in the power and pulp and paper sectors.
Ürdün-Bayrağı-Anlamı-ve-TarihiThe PMR supports Jordan to develop an MRV framework as well as provide technical assistance to enhance the capacity and readiness of public and private sector actors for climate financing and carbon market.
 The PMR provides support to pilot MRV in several sectors. It also supports capacity building on carbon pricing instruments and lays out design options and a road map toward the implementation of an ETS.
kzCarrying out analysis of the effect of emission trends and emissions trading scheme on the economy and execution of the model, investigating the obstacles encountered in the scheme of emissions trading. Developing emission indicators allowance allocation in certain sectors.
meksika_buyukIn Mexico, PMR funding supports the establishment of a national GHG emissions registry and the development of an MRV system for crediting of urban housing and transport NAMAs.
fas_buyukThe PMR supports Morocco to pilot market-based approaches in selected sectors and to build carbon market infrastructure (GHG registry and MRV framework), and explores way to integrate with international markets.
peruPeru develops the building blocks of a national mitigation action management system, including GHG data reporting and emissions registry, and designing GHG crediting instruments for pilot mitigation actions.
Güney-Afrika-BayrağıThe PMR supports South Africa to prepare for a carbon pricing instrument as well as to refine the design of its carbon tax through analytical work. Additional support include design of a related carbon offset scheme and capacity building.
taylandThe PMR supports the design of an Energy Performance Certificate scheme and prepares infrastructure such as a database and MRV system. PMR activities also include an ETS study and preparation of the Low Carbon City Program and Fund.It is planned to develop Energy Performance Certification System (EPC) and pilot Low Emission City Program (LPC).
tnPMR support to Tunisia includes development of sectoral crediting mechanisms in the cement and electricity sectors, as well as a national registry of mitigation initiatives and financing sources.
uaPMR activities in Ukraine focus on design and implementation of MRV regulation and systems in the energy and industry sectors and supports development of a regulatory framework for a national ETS.
Vietnam_FlagIn Vietnam, PMR support is strengthening capacity for carbon pricing approaches to mitigation, including through the use of MBIs, in the steel and solid waste sectors.


The PMR is made up of Contributing Participants, which provide financial support to the PMR Trust Fund, and Implementing Country Participants, which receive funding and technical support. Together, they make up the PA, the PMR’s decision-making body. Technical Partners are countries or sub-national jurisdictions at an advanced stage of implementing a carbon pricing instrument. They engage with the PMR through various collaborative activities or, if needed, receive technical assistance. The Participants Process consists of two phases, following an initial expression of interest: a Preparation Phase in which they formulate a Market Readiness Proposal (MRP) and an Implementation Phase in which they implement the activities identified in the MRP. MRPs are final – ized and presented to the PA for funding allocation. Technical assistance is provided by Delivery Partners and the Secretariat for both the preparation and implementation of the activities laid out in the MRPs. This map shows the different categories of Participants. It also indicates which stage in the process the Implementing Country Participants are at.

T.R. Ministry of Environment and Urbanisation

General Directorate of Environmental Management,
Department of Climate Change
Mustafa Kemal Mahallesi Eskişehir Devlet Yolu (Dumlupınar Bulvarı) (Tepe Prime Yanı) Bina No: 278 Oda No: 508, 06400 Çankaya/ANKARA
Phone: +90 312 474 03 39-40