World Bank:
Developing countries wanting to use market instruments to scale up
their mitigation efforts will soon have access to financial and
technical support arising from a new global partnership launched
today.
World Bank Group President Robert B. Zoellick announced the
establishment of the Partnership for Market Readiness at an event on
the sidelines of the UN Framework Convention on Climate Change
conference in Cancun.
The Partnership received pledges of more than $20 million by Australia
(A$10m), the European Commission (€5m) and the United States ($5m) in
Cancun today, which builds on an early pledge of $5 million from
Norway. In addition, Germany, Japan and the UK announced their
intention to support the initiative financially.
The Partnership is aiming for a total capitalization of $100 million.
It is expected to become operational in early 2011 and will support a
range of carbon market readiness initiatives ranging from technical to
policy to institutional interventions.
“This new Partnership – which brings together developed and developing
nations – will help countries get ready to put in place domestic
trading schemes and other market-based instruments to meet national
mitigation objectives,” Zoellick said. “The fact that developing
countries are looking for market-readiness support is testament to the
drive for climate action at the national level – these countries are
not waiting, they’re getting on with it as part of their development
goals.”
A number of countries, such as China, Chile, Indonesia, and Mexico are
exploring the use of carbon market instruments and emissions trading
mechanisms as a way of encouraging investment in alternatives to
carbon-emitting technologies. They are looking to build on lessons
from the 10 years of experience of the Clean Development Mechanism
under the Kyoto Protocol, and adapt them to their local contexts. For
example, Chile’s government is exploring the establishment of a
domestic emissions trading scheme; India, similarly, is putting in
place a trading scheme for renewable energy and energy efficiency
certificates.
Furthermore, China is joining the Partnership. “China has launched low
carbon economy pilots in five cities and eight provinces. China
intends to explore feasibility of domestic emissions trading schemes
to achieve mitigation,” said Mr. Xie, Vice Chair of the National
Development and Reform Commission. “The Partnership for Market
Readiness will provide timely support for the initiative.”
In announcing Australia’s A$10m contribution, Minister for Climate
Change and Energy Efficiency, Greg Combet, said “a broad and
well-functioning carbon market will help countries reduce carbon
pollution in the fairest, most efficient and cost effective way.
Australia looks forward to working with other partners in building
capacity to establish and expand carbon markets.”
Zoellick was joined at the launch event by Raineri Bernain, Chilean
Minister of Energy who presented his country’s national emissions
trading initiative. Other participants included ministers and senior
representatives from the European Commission, Australia, China,
Colombia, Germany, Indonesia, Japan, Mexico, Norway, South Africa,
Spain, Sweden, the UK and the US.
ends