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Market Development

East African Alliance on Carbon Markets and Climate Finance

In June 2019, the East African Alliance on Carbon Markets and Climate Finance was launched during a side event of the 50th UNFCCC Subsidiary Bodies session in Bonn. With this initiative, East African countries intend to foster sub-regional cooperation for leveraging each other’s strengths on carbon market approaches and climate finance. more

Collaborative Instruments for Ambitious Climate Action

Collaborative Instruments for Ambitious Climate Action (CI-ACA) is an initiative implemented by the UNFCCC through its Regional Collaboration Centres (RCCs). It assists countries in the development of domestic climate policies instruments such as carbon markets, carbon taxes, and other emission reduction instruments with strong monitoring, reporting and verification components. CI-ACA is supported by voluntary contributions from a number of national governments, including the German Federal Government through BMU. more

West African Alliance on Carbon Markets and Climate Finance

During COP23 in Bonn, the West African Alliance on Carbon Markets and Climate Finance sponsored by BMU invited interested participants to an open and interactive exchange. The Alliance establishes a long-term structure for fostering carbon markets and result-based climate finance in West Africa that will integrate a variety of support activities by strengthening the representation of West African delegates in the negotiations on those issues. The lead negotiator for markets of the African Group, Mr El Hadji Mbaye Diagne, recalled the relevance of market mechanisms for African countries as a tool for implementing their NDCs. more

Carbon Market Platform

In recent years, emissions trading schemes and carbon taxation, the two main carbon pricing in­struments, have become established in countries around the world. This global trend is, however, both uncoordinated and fragmented. There are still many regions and industry sectors in which emitters of greenhouse gases are not required to cover the costs of the damage caused by their emissions. There is still work to be done, therefore, to encourage wider use of carbon pricing. more

Partnership for Market Readiness

The Partnership for Market Readiness (PMR) was launched at the climate talks in Cancún in 2010. The World Bank initiative promotes the establishment of a global carbon market and supports proactive countries in preparing and implementing innovative carbon market instruments. The PMR provides financial and technical support and furhter serves as a dialogue forum. more

Carbon Pricing Leadership Coalition

Carbon pricing is seen as a key instrument in mitigating climate change. An ever greater share of global greenhouse gas emissions has been covered by carbon pricing in recent years. In 2017, around 13 percent of the global greenhouse gas emissions will presumably be covered by a carbon tax programme or an emissions trading scheme. more

Pilot Auction Facility for Methane and Climate Change Mitigation

In light of the ongoing market crisis and given the risk of mitigation projects in specific sectors being discontinued, the “Pilot Auction Facility for Methane and Climate Change Mitigation" (PAF) was launched in 2015 by the World Bank. The initiative targets projects which due to the low prices for emission certificates are at risk of being stalled, but need only marginal additional revenue to ensure their continuation. more

Transformative Carbon Asset Facility

At the climate change conference in Paris, Norway, Germany, Sweden and Switzerland announced that they had joined the World Bank in launching the Transformative Carbon Asset Facility (TCAF) – another initiative to promote new forms of market-based emission reduction activities. TCAF, which the UK and Canada have since joined, assists developing countries in establishing and imple­menting market-based mitigation instruments by providing results-based payments for proven emission reductions at sectoral level. more

Nitric Acid Climate Action Group

The low demand for certificates under the CDM means that hardly any transactions are taking place. Given the continued low price for CERs, only few requests for certificate issuance are being submitted and project registration is stagnating to boot. This raises the question as to how climate change mitigation activities initiated under the CDM can be continued in times of poor CER demand. The Nitric Acid Climate Action Group (NACAG) launched by the Federal Government at the climate change conference in Paris addresses this very issue. more

PoA Working Group

Over the years, the BMU has conducted a large number of activities to promote further development of programmatic approach (Programmes of Activities (PoAs) under the CDM. Although the CDM and thus its programmatic approach have only limited prospects for the future, the concept is still of great interest because, in principle, it lends itself to use with other mitigation mechanisms, with international climate financing and perhaps also with international cooperation mechanisms under Article 6 of the Paris Agreement. The BMU thus continues its long-term engage­ment in support of PoAs, albeit with a slightly broader focus. A key function of this work is performed by the “PoA Working Group”. more

The ‘Future of the Carbon Market’ Foundation

The implementation of Programmatic market-based mitigation projects, such as CDM Programmes of Activities faces barriers. One particular problem developers face is the lack of seed funding. Against this background, BMU initiated the Future of the Carbon Market Foundation and endowed it with financial resources of €10 million to support selected programmatic mitigation initiatives. Funding by the Foundation is usually provided in form of advance payments against future carbon revenues. more