Business Partnership for Market Implementation
IETA's INDUSTRY-TO-INDUSTRY CARBON MARKET DIALOGUES
Building on the achievements of the former
Business Partnership for Market Readiness (B-PMR),
IETA is launching a new initiative, the B-PMI, to complement the World Bank’s PMI, providing capacity building and training to business organisations from selected PMI countries.
The goal is to create synergies with the World Bank’s programme and leverage overall climate ambition, helping businesses identify opportunities created by voluntary and compliance markets as well as the operationalisation of Article 6.
With more than 20 years as market champion, IETA is ideally positioned to promote common understanding with local businesses in these countries, share best practices and assist in the market design/policy development processes.
B-PMI aims to support the emergence of a new global carbon pricing architecture where different domestic and international markets co-exist in an integrated and interoperable ecosystem.
WHAT IS THE PMI?
“The Partnership for Market Implementation (PMI) is a grant-based, capacity-building trust fund that provides funding and technical assistance for supporting 30 countries and jurisdictions in the development and implementation of carbon pricing instruments to meet their NDC targets and long-term decarbonization strategies. The Partnership helps countries participate in the operationalization of Article 6 of the Paris Agreement, identify and implement best practice approaches, and, where relevant, help them achieve compatibility in design with other carbon pricing efforts and markets. It provides a platform for technical discussions, information exchange, and collective innovation on carbon pricing instruments and market mechanisms that inform the national and international policy discussions on greenhouse gas mitigation.”
IMPORTANCE OF THE B-PMI
The private sector is a crucial stakeholder in ensuring the economic efficiency and environmental integrity of the implementation of carbon markets and the operationalisation of Article 6 worldwide. However, the World Bank's PMI will not focus on business engagement and private sector capacity building. IETA's B-PMI seeks to bridge this gap by establishing an initiative focused on business-to-business engagement.
Counting on IETA's membership that includes over 200 leading companies active in carbon markets worldwide, some of which already active with Article 6.2 pilot projects, and representing the full range of technical capabilities needed to make markets work, B-PMI will offer experienced professionals to be credible voices of support for carbon pricing and market mechanisms in PMI jurisdictions – encouraging local businesses and helping them build capacity to gain value from the market.
By doing so, B-PMI can inform policies and increase business support for carbon pricing mechanisms aligned with both national long-term climate targets and the Article 6 rulebook. Strategically, B-PMI presents an opportunity for IETA members to gain a better understanding of new carbon pricing mechanisms, network with new potential business partners, and gauge new trends in market formation.
(Q1-Q2 2022): launch of the initiative; recruitment of Steering Committee members;
selection of initial target countries; start engagement.
(Q3 2022 – Q4 2023): operations in the first 2-3 target countries.
(Q1 2024 and beyond): based on the experiences of Phase 2, we will seek to expand the program in additional jurisdictions. Depending on the level of interest, funding and results achieved, the programme will expand at a rate of up to 2-3 target countries per year.
B-PMI OFFICIAL LAUNCHING
The World Bank welcomes B-PMI and provided the venue for its official launching in May 2022.
‘Launch of the Business Partnership for Market Implementation (B-PMI) – Mobilising the private sector for effective carbon pricing implementation’ took place virtually at the World Bank's Innovate4Climate (I4C) event.
Please, find the link to the B-PMI official launching recording here.
B-PMI STEERING COMMITTEE MEMBERS
Initially, B-PMI Steering Committee will be composed of companies serving on the former B-PMR Steering Committee and, gradually, IETA members making new pledges and contributions to B-PMI will be integrated into it.
As B-PMI dialogue involves costs that are beyond the core budget of IETA, member companies are invited to support the B-PMI at various levels (as sponsors, contributors, hosts, or pro bono supporters). Sponsors and selected Supporter companies will be asked to serve on a Steering Committee to provide day-to-day guidance for the initiative.
If interested in participating in the B-PMI, please, contact Andrea Bonzanni (firstname.lastname@example.org) or Dirk Forrister (email@example.com).
B-PMR ACHIEVEMENTS AND LESSONS LEARNED
B-PMR was implemented to promote industry readiness, knowledge transfer, and policy preparation and fulfill the critical role of building business capacity by sharing real-world experience. It became a forum where experts are on hand to engage in robust dialogue with local industry stakeholders. Between 2012 and 2019, IETA’s B-PMR initiative held multiple industry-to-industry dialogues in selected PMR participating countries, such as China, South Korea, Kazakhstan, Mexico, and South Africa.
Some key learnings from B-PMR missions were:
> Having similar or comparable verification standards helps in seamless integration between different markets.
> Greater cooperation, accountability, and transparency in a market add to its value.
> Extensive data is essential to make a case for emissions trading as a business opportunity and not an obligation.
> A company may cost-effectively meet its emission reduction targets under an ETS through various possible strategies, including emission permits & international abatement, purchasing offsets, borrowing, and banking, yield arbitrage.
If you have any further questions regarding this new IETA's initiative, please, do not hesitate to contact us:
International Policy Director