What we committed
At COP28, the World Bank launched the Carbon Markets Engagement Roadmap to expand high-integrity carbon markets, mobilize finance, and provide a robust supply of high-quality credits. We set a goal to support 15 countries in generating forest carbon credits by 2028, to advance large-scale emissions reduction programs within the Bank¡¯s portfolio, and to work with stakeholders to identify and address bottlenecks to scale carbon markets.
What we delivered
- We have helped to generate five million credits that can be sold in compliance and voluntary carbon markets and hope to reach 126 million credits by 2028.
- We host and manage the Carbon Asset Tracking System (CATS), a robust and transparent registry system that facilitates the issuance and transaction of carbon credits supported by our carbon funds.
- The Bank is also supporting countries to build their capacity in carbon markets to develop institutional and policy frameworks, attract private investment, maintain credit integrity, and ensure benefits for forest communities and Indigenous peoples.
- At the global level, we are partnering with key players to remove the most critical impediments for carbon market expansion, including setting standards, clarifying the legal nature of carbon credits, and helping countries set up the necessary infrastructure to connect to a global carbon market. Key initiatives include:
- Carbon market analytics: Launching an annual report to focus on trends and bottlenecks:
- Emissions reductions: Supporting sustainable land use and energy access operations to generate high integrity credits. In Uzbekistan, we supported the first policy crediting program to incentivize tariff reforms in the energy sector, leading to emission reductions.
- Market infrastructure and transparency: Developing methodologies for energy access and forestry projects, supporting countries to set up registries, and connecting global registry data for over 75% of market activity through the Climate Action Data Trust.
- Stakeholder engagement: Launching the Carbon Action Forum to connect buyers and sellers, leading the Carbon Markets Infrastructure Working Group to identify and unlock bottlenecks, and hosting the to foster knowledge sharing.
Impact
By COP29, we aim to pay $175 million to developing countries for 35 million verified forest carbon credits, with five million excess credits available for markets or countries¡¯ Nationally Determined Contributions.
We have collaborated with partners to enhance transparency and support representation from developing countries in discussions. We have also worked to harmonize capacity-building and governance standards, making progress toward a cohesive, effective carbon market.
Next steps
At COP29, we will provide an update on the Engagement Roadmap and launch three deliverables: (i) a Country Guidance Note to help countries navigate decisions and trade-offs associated with engaging in carbon markets, (ii) a report on financial and market integrity considerations, and (iii) a roadmap for safe, efficient and interoperable carbon market infrastructure.
These have all been developed in partnership ¨C which is critical to unlock the potential of carbon markets to channel climate finance and bring benefits to vulnerable communities most impacted by climate change.