Partnership for Market Readiness (PMR)
As of: January 2021
Carbon markets are a cost-effective way to reduce emissions of climate-damaging gases. The Partnership for Market Readiness (PMR) is driving the development of a global carbon market. It promotes the establishment of market-based instruments in developing, emerging and transitional countries. Oriented on the needs of the partner countries, the PMR pursues various approaches, such as the development of emissions trading systems, CO2 taxes and certification standards. The Partnership for Market Readiness functions as a dialogue forum for technical exchange between countries that already have market-based climate protection instruments and countries that are currently introducing them. In its additional role as a trust fund, the PMR provides the financial means for the development, piloting and implementation of appropriate market instruments and the creation of the associated necessary conditions. Through the IKI, Germany is one of the thirteen donors of the Partnership, the Secretariat functions of which are assumed by the World Bank.
State of implementation/results
- The PMR has established itself as a central platform for supporting national mitigation efforts through the use of carbon pricing instruments; the Partnership Assembly meetings occurring twice a year as well as various workshops and e-course have been particularly helpful for a so called South-South-exchange.
- So far 19 countries have been approved to receive funding to the amount of 127 mio. USD for implementing measures. In addition, Germany, California, Kazakhstan and Quebec are proving as technical partners their experiences with reference to emissions trading to the PMR.
- With support of the PMR currently 17 final Market Readiness Proposals (MRPs) have been endorsed by implementing countries that build on comprehensive analysis and stakeholder consultation processes and thus represent the cornerstone to implement carbon pricing instruments.
- A range of countries are now preparing to implement their MRPs in the near-term future. The PMR started furthermore to support very ambitious and advanced countries with upstream policy work on post-2020 mitigation scenarios to better analyze the consequences for other policy areas and specific economic sectors.