19 Implementing Country Participants have completed a Market Readiness Proposal (MRP), an action plan for designing and piloting market-based instruments for GHG mitigation.
Country Status Report [September 30, 2017]
Becoming an Implementing Country Participant
Countries interested in joining the PMR as Implementing Country Participants submit an expression of interest to the Secretariat. Depending on the availability of funding, a country is invited to present an Organizing Framework for the Scoping of PMR Activities.
The framework outlines the types of activities a country is prepared to explore in its MRP, including:
- Overview of a country’s mitigation objectives and emissions profile;
- Potential core readiness components (and potential market-based mechanisms if a country is at this stage) for development;
- Identification of sectors to be targeted; and
- Inclusion of other relevant work streams that could complement the PMR work.
The Organizing Framework is presented to the PA for consideration and endorsement. Once a country is confirmed by the PA, it is allocated preparation phase funding in the amount of US$350,000.
Developing a Market Readiness Proposal (MRP)
Implementing Country Participants use the preparation phase funding to prepare a MRP. The MRP provides a detailed roadmap of the market readiness components and - if appropriate - market-based mechanisms a country intends to explore as part of its participation in the PMR. The MRP also includes a timeline and budget for these activities. For more details on the contents of the MRP, visit Country Work to read about the MRP's six building blocks or download the MRP Tool.
During the preparation phase, draft MRPs receive feedback through two channels: first from an independent expert group with technical expertise specific to the proposal, and second from other PMR Participants following a presentation to the PA. Following revisions based on this feedback, a final version of the MRP is presented to the PA for consideration of funding.
Allocating Funding
MRPs may receive implementation funding in the amount of $3, $5 or $8 million. The PA uses this set of criteria to assess the readiness of an MRP for an allocation of US$3 million and this additional set of criteria considerations of more than US$3 million. In general, countries whose MRPs focus exclusively on building readiness meet the criteria for a US$3 million grant. Countries that are ready to design and pilot a market-based instrument, including a carbon pricing instrument, are eligible for a higher-level of funding. Countries are invited to return to the PA to request additional funding to build upon the work of their MRPs.
Currently, 16 of 19 countries have been allocated implementation phase funding.
Implementing an MRP
Each country's implementation strategy is unique but generally includes a multi-stakeholder domestic approach complemented by expertise from the World Bank, the PMR Secretariat, and external experts. Implementing Country Participants update the PA on the progress of their MRP draft or MRP implementation during PA meetings. This is an important exercise not only to document progress but to share lessons learned with the other members of the partnership. Final MRP and country MRP updates are publically available on countries' pages.
Tools, Templates, and Guidelines
The resources below have been custom-designed for use by the PMR Implementing Country Participants in the formulation and implementation of their PMR activities. However, they are created to appeal to various country circumstances. National or subnational governments exploring market based instruments are welcome to adopt and adapt these tools.
Organizing Framework for Scoping PMR Activities: Implementing Country Participants use the Organizing Framework to outline initial ideas for activities to be carried out as part of the PMR. Preparation phase funding is allocated following the completion of the Organizing Framework.
- Guideline to Preparing the Organizing Framework for Scoping of PMR Activities
- Template for the Organizing Framework for Scoping of PMR Activities
Market Readiness Proposal (MRP): The MRP Tool is a guide used by countries to take stock of domestic mitigation priorities and strategies and to identify the potential role for market instruments in implementing such strategies. The tool is also used to assess existing market readiness capacity and to identify capacity gaps.
- Tool for preparing a Market Readiness Proposal (MRP) - Version 3
- Template for preparing an MRP Version 3 (MS Word)
Templates for Additional Funding Proposals: The templates can be used by Implementing Countries for funding proposals related to activities to complement existing PMR activities, and for funding proposals related to policy analysis activities.