In its final report the United Nations Advisory Group on Finance concluded that scaled-up carbon markets could deliver around $30 billion of financial flows to developing countries annually.
The PMR supports the creation of market-based policies to deliver GHG mitigation at scale and encourage low carbon development in developing and middle-income countries.
The UK Government is supporting the PMR to help developing and middle income countries set up their own market mechanisms, such as emissions trading systems, to achieve emissions reductions at scale. This will allow more investment in green technologies across the world and help stimulate private sector low carbon investment opportunities.
What is being done?
The PMR supports countries around the world to develop carbon pricing policies tailored for their specific needs. £7m has been invested by the UK since 2011 in a fund of $126m hosted by the World Bank, working with the Ministries of seventeen developing and middle income countries to support the development of greenhouse gas mitigation policies. It is a World Bank fund with 30 participants (13 donors and 17 recipients, collectively responsible for over 70% of global emissions) which provides technical assistance grants and a structured process for sharing knowledge, expertise and experience. Developing national carbon pricing policies is important because they allow emissions to be reduced at the lowest cost. In addition the development of domestic carbon markets also has implications for climate finance.
The PMR is building international support for market-based mechanisms and promotes the broader establishment of robust MRV (Monitoring, Reporting and Verification) standards, with the ultimate goal of fostering increased GHG mitigation by increasing international access to cost effective mitigation tools.
The PMR aims to increase the number of countries implementing market-based schemes, with a minimum of 5 countries testing and piloting new market schemes by 2020; and to create a forum to enable experts from different countries and organisations to share experience and knowledge.
As of April 2015 the PMR has awarded funding to 13 countries to support the implementation of their carbon pricing policies: Brazil, Chile, Colombia, Costa Rica, Indonesia, Mexico, Morocco, Thailand, Turkey, Ukraine and Vietnam were each awarded US$3 million, South Africa was awarded $5m, and China was awarded US$8 million.
Links to further info
*Find out more about the PMR
*Read the first annual review of the PMR
*Read the second annual review of the PMR
*Read the third annual review of the PMR