Enhancing Carbon Pricing and International Carbon Market Readiness Through the Mitigation Action Assessment Protocol : Summary Report
Putting a price on carbon can be an indispensable part of a country’s strategy to reduce emissions in an efficient way. Furthermore, putting a price on carbon through international carbon markets can also offer significant cost benefits and enable...
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| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/500111626846261681/Enhancing-Carbon-Pricing-and-International-Carbon-Market-Readiness-Through-the-Mitigation-Action-Assessment-Protocol-Summary-Report http://hdl.handle.net/10986/36022 |
| Summary: | Putting a price on carbon can be an
indispensable part of a country’s strategy to reduce
emissions in an efficient way. Furthermore, putting a price
on carbon through international carbon markets can also
offer significant cost benefits and enable flexibility in
achieving emission reduction targets. Article 6 of the Paris
Agreement provides a potential basis for bottom-up carbon
market linkage. Under the Paris Agreement, carbon pricing
policies and international carbon markets are increasingly
developed bottom up and are diverse in nature to accommodate
countries’ domestic priorities. While this bottom-up
development promotes innovation, the diversity of approaches
reduces transparency between climate actions and increases
the complexity of market integration. A standardized
framework is needed to assess countries’ capacity building
needs to participate in carbon pricing and international
carbon markets. The World Bank initiated the development of
the mitigation action assessment protocol (MAAP) in 2015 to
drive meaningful assessment of diverse climate actions.
Pilots results showed that MAAP provides a transparent and
relatively easy-to-use framework to help countries identify
strengths and opportunities for improvement. Future
implementation of the tool will seek to address identified
challenges such as collecting evidence, identifying capacity
building priorities, and providing guidance on communication
strategies. This report summarizes key findings and lessons
learned from pilots. |
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