2017–2018 Annual Report 1 2017–2018 Annual Report ¥ £ $ ¥ $ $ € € ¢ £ ¥ CO2e ¥ 2 CF-Assist © Matyas Rehak, Shutterstock 2017–2018 Annual Report 1 Table of Contents FOREWORD 2 CF-ASSIST: IN ACTION 3 2.1 CLIMATE ANALYTICS AND ADVISORY SERVICES 3 2.2 CLIMATE KNOWLEDGE FORUMS 11 2.3 GLOBAL CAPACITY BUILDING AND KNOWLEDGE SOLUTIONS 16 2.4 CARBON PRICING LEADERSHIP COALITION 18 2.5 NETWORKED CARBON MARKETS 20 CF-ASSIST: LOOKING AHEAD 21 CF-ASSIST: AROUND THE WORLD (MAP) 22 2 CF-Assist Foreword The landmark 2015 Paris Agreement set a goal for countries to keep the rise in global average temperature below two degrees Celsius. Article 6 of the covenant facilitates the use of international carbon markets and carbon pricing to mitigate climate change and shape broader policy through trade-offs. CF-Assist is focused on strengthening this narrative by building institutional capacities for client countries through its technical advisory programs and innovative knowledge solutions, and by hosting global and regional events on policy, pricing, and finance. As this report goes into production, preparations are underway to hold the second global carbon forum — Innovate4Climate (I4C). I4C provides a platform to foster deal- making by convening a dialogue between development organizations and client countries, with public and private actors, in a business-supportive environment. Ramping up its technical advisory work in developing mitigation policies to assist countries in implementing their Nationally Determined Contributions (NDCs), CF-Assist continues to support development and dissemination of innovative learning products. After three successful deliveries in previous years (two in English and one in Spanish) of the Massive Open Online Course (MOOC) on climate science and action, this fiscal year the MOOC was delivered in French as “Climat – de la Science à l’Action.” The four-week course was well received and generated an overwhelming interest from around 7,000 learners from 125 countries. CF-Assist, which was established in 2005, has been evolving in response to the changing climate realities. Lately, efforts have focused on carbon pricing and climate finance to accomplish the determined climate agreements. This report details recent progress on initiatives such as the Carbon Pricing Leadership Coalition (CPLC) and the Networked Carbon Markets (NCM), through which CF-Assist supports countries in realizing their voluntary commitments under the Paris Agreement. One of the most current projects is an upcoming program on the use of blockchain technology for enhancing climate markets post-2020. Since its inception, the CF-Assist Trust Fund has trained nearly 60,000 participants to enhance their knowledge and skills in order to design and implement climate change mitigation activities. Over the coming year, CF-Assist will build on its successes and move forward in helping more client countries attain real progress toward achieving sustainable climate action goals. VENKATA RAMANA PUTTI, PHD Program Manager Carbon Markets and Innovation The World Bank Group 2017–2018 Annual Report 3 CF-Assist: In Action CLIMATE ANALYTICS AND ADVISORY SERVICES CF-Assist strengthens the capacity of client countries to understand, integrate, and develop low-carbon initiatives consistent with their NDCs, sustainable development priorities, and country climate action strategies. Country programs focus on the identification of transformational policy packages and the enhancement of national capacity to plan for, access, deliver, and monitor climate finance. The program currently works in Zimbabwe, Vietnam, Ethiopia, Pakistan, India, Bhutan, Mexico, Columbia, and Laos. Bhutan Pakistan Mexico Vietnam India Ethiopia Laos Colombia Zimbabwe 4 CF-Assist CLIMATE ANALYTICS AND ADVISORY SERVICES Zimbabwe NDC IMPLEMENTATION AND CLIMATE FINANCE CF-Assist supports the Zimbabwe Climate Change Milestones: Technical Assistance Program (ZIM-CLIM) by focusing on cross-sector policies and processes that make „„Development of analytical underpinnings to identify Zimbabwe’s development less carbon-intensive. The policy actions and investments to achieve NDC program contributes to the implementation of NDCs targets in alignment with key government policies by prioritizing the development of a roadmap that and priorities; includes cost-effective measures to achieve targets in priority sectors and the measuring, reporting, and „„Rollout of MRV framework, including the MRV pilot verification (MRV) framework. in a priority sector (completion expected 2018-2019); „„In-depth capacity building on GCF accreditation Secondly, CF-Assist helps mobilize climate financing requirements. A training workshop presented to from the Green Climate Fund (GCF) and other IDBZ staff in January 2018 focused on environmental sources. It focuses on developing bankable projects in and social safeguard requirements and policies, line with the country’s climate change strategies and including gender. supporting the Infrastructure Development Bank of Zimbabwe (IDBZ) to achieve accreditation to the GCF. „„Support to IDBZ to address gaps in the safeguard requirements for accreditation, including the development of environmental, social, and gender policies. The IDBZ wishes to express its gratitude for the invaluable support it is receiving under the Zimbabwe Climate Finance Technical Assistance Program as it seeks to secure accreditation to the Green Climate Fund. This technical assistance will go a long way toward the development of a robust pipeline of climate mitigation and adaptation investments. © John Alexander, Flickr T. Zondo Sakala, Chief Executive Officer Infrastructure Development Bank of Zimbabwe 2017–2018 Annual Report 5 CLIMATE ANALYTICS AND ADVISORY SERVICES Vietnam MITIGATION POLICY ANALYSIS The energy sector is the single largest source of Objectives: greenhouse gas (GHG) emissions in Vietnam. It accounts for more than 60% of total GHG emissions „„Develop and reach consensus on cost-effective, through power generation, industry, buildings in the low-carbon energy mitigation options and residential and commercial sectors, and pathways on both the demand and the supply transportation. Further, it is predicted to rise to more sides to achieve the NDC target; than 85% by 2030. „„Determine effective policies to implement the The Ministry of Industry and Trade (MOIT) envisages identified energy mitigation options to achieve the that the scope of its sector contribution toward NDC target; Vietnam’s mitigation commitments will cover both „„Estimate the total costs and financing needs to energy supply and demand sides. Based on the achieve the unconditional and conditional targets request from the Ministry of Natural Resources and detailed in the NDC. Environment and MOIT, CF Assist is supporting the preparation of Vietnam’s energy sector’s mitigation action plan. This is both important and timely as the output of this support is expected to be used for the preparation of the country’s next NDC. The scope of this work will be an extension of the existing analyses the government conducted as a detailed underpinning of its NDC. © UN Photo/Kibae Park, Flickr 6 CF-Assist CLIMATE ANALYTICS AND ADVISORY SERVICES Ethiopia CARBON PRICING Ethiopia is endeavoring to reduce emissions by 64% Milestones: as part of its national policy to build a climate-resilient, green economy. To reach this ambitious target, Ethiopia „„The methodology for evaluating the economic and will explore all climate change mitigation policy instruments social impact of climate carbon pricing was and public investment schemes, including carbon developed, peer-reviewed, and agreed with the pricing, that are found to be effective, fair, and efficient. Ethiopian Development Research Institute (EDRI); To deliver on this commitment, CF-Assist is supporting „„The carbon pricing draft study was completed and Ethiopia initially through a study outlining the role and presented at the EDRI Conference and Policy Day possible forms of carbon pricing policies. These on October 26, 2017; recommendations may also apply to similar low-income „„Complementary analytical pieces were drafted, developing countries. which evaluate how carbon tax revenues can be used to enhance environmental co-benefits. This Specifically, this carbon pricing study will: report includes potential uses of revenues for: „„Examine the economic and social impact of a. expanding distribution and uptake of more climate mitigation policies and carbon pricing on fuel-efficient, improved cook stoves; low-income countries through the case study of Ethiopia; and explore how to design policies to b. providing incentives for vehicle turnover to maximize benefits and minimize risks. reduce the number of older and high-emission vehicles on the road, as well as expanding „„Increase understanding of the social distributional access to public transportation; impact of such policies; and identify ways to design the balancing and compensation measures that c. enhancing activities under the United Nations ensure the poor and vulnerable are not burdened. REDD+ and domestic forest investment „„Build capacity on qualitative and quantitative programs to increase forest carbon assessment methods to evaluate the economic sequestration and reduce forest degradation. and social effects of climate mitigation policies in the context of low-income countries. © ILRI/Zerihun Sewunet, Flickr 2017–2018 Annual Report 7 CLIMATE ANALYTICS AND ADVISORY SERVICES Pakistan CLIMATE CHANGE POLICY CF-Assist supports the Government of Pakistan (GoP) Objective: in mainstreaming climate change in its planning for all public sector development projects. The program will „„The program aims to have a country-wide impact also facilitate the World Bank’s engagement with in terms of building resilience against the impact of Pakistan on climate change, and assist the country climate change. deliver on its international commitments to include climate change mitigation and adaptation, in line with its NDC. Further, the GoP, through the Ministry of Planning, Development, and Reform and Ministry of Climate Change, will receive technical assistance to revise the basic development project plan, referred to as the Planning Commission Proforma-1 (PC-I), enabling the federal government to deliver on its NDC. A series of workshops with provincial governments will address NDC targets and the revision of the development planning process. © Curt Carnemark / World Bank, Flickr 8 CF-Assist CLIMATE ANALYTICS AND ADVISORY SERVICES India and Bhutan CARBON PRICING INSTRUMENTS The program supported by CF-Assist will design a Objectives: prototype of the Internationally Transferred Mitigation Outcomes (ITMO) trade mechanism using the case of „„Assess the sustainable hydro development Bhutan and India. It will continue to promote potential in Bhutan, and develop a plan to ensure sustainable development and ensure environmental environmental integrity and transparency; integrity and transparency. The overall development objective is to strengthen the readiness of Bhutan and „„Propose governance arrangements between India India, for the assessment, design, preparation, and and Bhutan (including institutional arrangements) for implementation of new and existing carbon pricing the bilateral ITMO trade. It will define the accounting instruments. framework, avoid double counting, and create a registry to implement the accounting procedures; „„Design a facility in Bhutan to channel and utilize funds from the voluntary cooperation mechanisms outlined in Article 6.2 of the Paris Agreement. This facility will cover the trade of ITMOs and other international climate finance to increase the ambition of climate mitigation and adaptation action; „„Consult with stakeholders through workshops and outreach in India and Bhutan. © Matriux2011, Flickr © Curt Carnemark / World Bank, Flickr 2017–2018 Annual Report 9 CLIMATE ANALYTICS AND ADVISORY SERVICES Mexico GREEN CLIMATE FUND FINANCING CF-Assist supports Mexico in establishing a viable Objective: pipeline of innovative projects to be proposed to the GCF in line with the country’s NDC and climate „„Support the GoM to build institutional capacity to change policy. plan for evaluation, selection access, management, deployment, and monitoring of proposals to be This year, the program assisted in conducting submitted for GCF financing. analytical work to develop an operations manual for the evaluation and selection of GCF project proposals, as well as sharing events and products, and capacity building activities on the GCF and climate finance. A key focus was on circulating the results within the Government of Mexico (GoM) and with stakeholders, as well as fostering knowledge on climate finance. The program has supported capacity building and global knowledge exchange on climate change and climate finance, with the goal of sharing and strengthening the Mexico approach. © belfasteileen, iStock 10 CF-Assist CLIMATE ANALYTICS AND ADVISORY SERVICES Colombia and Laos AIR POLLUTANT AND GHG EMISSION MITIGATION IN CITIES THROUGH POLLUTION CHARGES AND CARBON PRICING Colombia organized a workshop in Vientiane that provided an overview of economic instruments used for green In Colombia, CF-Assist is working with the local growth and shared successful case studies of green authorities of the Metropolitan Area of the Aburra financing in other jurisdictions. Valley (AMVA) — which includes Colombia’s second During the workshop, participants identified priorities largest city, Medellin — to support the development of and next steps for developing market-based market-based instruments. The program, Air Pollutant mechanisms. Working with the Ministry of Finance and and GHG Emission Mitigation in Cities through Pollution the Ministry of Natural Resources and Environment, Charges and Carbon Pricing, provides incentives to this program is also helping the government establish reduce emissions of local air pollutants and GHG. clear provisions for the management and expenditure The program has helped estimate the economic costs of revenues collected through the charges and fees, of the health issues caused by exposure to fine with the aim of directing them toward the country’s particulate matter (PM2.5) in the Aburra Valley in priority environmental problems. current conditions and in the future under a baseline scenario. In addition, the initiative has developed a model to show the positive effects of adopting Objectives: different market-based instruments on air pollution and GHG emissions, and demonstrate the „„Develop a strategic framework and a methodology subsequent health improvements. for regulatory impact analysis of pricing policies for air pollution and GHG in cities; Such market-based instruments include charges on PM2.5 emissions and incentives to replace old, „„Apply the framework in cities, including the polluting vehicles with more efficient, modern ones. preparation of analytical work and organizing Apart from advising the AMVA, the program regularly stakeholder consultations. coordinates with the national Ministry of Environment and Sustainable Development, and communicates with a broad range of local and national stakeholders. © Dominic Chavez / World Bank, Flickr Laos In Laos, the program supports the development of pollution charges and fees to reduce emissions of air pollutants and GHG. In October 2017, the program 2017–2018 Annual Report 11 CLIMATE KNOWLEDGE FORUMS CF-Assist offers a discrete platform for private and public-sector partners to connect and collaborate on climate finance, as well as policies and measures that incentivize financial support from international and domestic sources. Its annual conferences contribute to post-Paris Agreement efforts to meet climate goals that complement the Sustainable Development Goals at the national level. These forums provide an opportunity for capacity building in designing carbon-pricing policies and the investment planning that supports countries’ NDCs. INNOVATIVE4CLIMATE LATIN AMERICA & CARIBBEAN CARGON FORUM 2017 | Barcelona, Spain 2017 | Mexico City, Mexico 2017 | Bangkok, Thailand 2017 | Cotonou, Benin ASIA PACIFIC CARBON FORUM AFRICA CARBON FORUM 12 CF-Assist CLIMATE KNOWLEDGE FORUMS Innovate4Climate (I4C) The Innovate4Climate (I4C) platform was launched in Major Milestones: 2017 in Barcelona as an integral part of a comprehensive approach to support climate action. It builds on 1,500 participants from 82 countries took „„ CARBON EXPO, the preeminent global forum on part in the first I4C; carbon markets from 2004 to 2016, and reflects the post-2015 development landscape. The Unlock the Trillions summit was the „„ central feature of the event, garnering great The I4C conference has a broader scope than its interest among participants and media. predecessor due to the urgency of climate action and the Some of the 68 speakers included: Bertrand scale of financing needed to effectively tackle climate Piccard, Chairman of Solar Impulse and change. It addresses the Paris Agreement’s emphasis aviator; Jean-Marc Duvoisin, CEO of on aligning climate and development finances to reflect Nespresso; and Michael Liebreich, CEO of country-specific priorities in pursuing low-emission Bloomberg New Energy Finance. John development pathways (as expressed in their NDCs). Roome, Senior Director for Climate Change at the World Bank, led the summit dialogue. The new concept leverages the experience of CARBON In 100 workshops, about 350 international „„ EXPO and embraces the global themes of climate experts discussed the challenges facing finance, sustainable development, and carbon pricing the planet as a result of climate change; and markets. I4C serves as a platform to foster deal- making by convening a dialogue between developed About a quarter of the workshops focused „„ and developing countries. It brings together public and on the lack of financing for climate change private sectors with development organizations — all projects, with particular focus on private- in a business-supportive environment. public collaboration needed to achieve the targets of the Paris Agreement. © Simone D. McCourtie / World Bank, Flickr 2017–2018 Annual Report 13 Strategically hosted in Frankfurt, I4C 2018 will highlight „„The Marketplace — a space dedicated to the critical role of the financial sector in de-risking and exhibitions and networking; channeling investment toward low-carbon and climate- „„Digital Media Zone, which gives a unique resilient initiatives. It will feature several avenues for opportunity for conference participants and dialogue and networking: speakers to connect with a global online audience. „„A high-level summit focused on scaling and I4C is supported by CF-Assist and co-hosted with the accelerating transformative investment for climate Government of Spain (Ministry of Agriculture and action; Fisheries, Food, and Environment) and the „„A workshop series that features a rich program Government of Germany (the Federal Ministry for around four themes: the business case for climate Economic Cooperation and Development and the investment; policy and finance needed for NDC Federal Ministry for the Environment, Nature implementation; innovation for climate resilience; Conservation, Building, and Nuclear Safety). and climate markets and metrics. More information can be found at „„The Pitch Hub — a platform for participants to www.innovate4climate.com present ideas in a dynamic and interactive format; 14 CF-Assist CLIMATE KNOWLEDGE FORUMS Africa Carbon Forum The Ninth Africa Carbon Forum (ACF) was held at Objectives: Cotonou, Benin in June 2017. During the three-day conference, participants were motivated and keen to „„Identify and mobilize new sources of finance, learn about innovative ways to engage the private sector including from the private sector; on small-scale energy projects. Among the issues discussed were carbon pricing in Africa and opportunities „„Prioritize the need to go beyond the results of the to advance implementation of climate action. UNFCCC’s Clean Development Mechanism; „„Collaborate on climate action for sustainable Together with understanding the need to focus on development in Africa; strengthening engagement between state and non-state actors, workshops and plenaries examined „„Focus on the role of future carbon markets to practical examples of policies, initiatives, and actions achieve enhanced climate action, as part of an in Africa — and the barriers to climate change action. overall implementation of countries’ NDCs. The ACF was attended by more than 600 experts and policy makers, with a strong presence from the Government of Benin (GoB). On the third day of the forum, a high-level ministerial segment hosted by the GoB included Anne-Désirée Ouloto, Minister of Environment from Cote d’Ivoire; Patricia Espinosa, UNFCCC Executive Secretary; and climate champion Hakima El Haite from Morocco. © Rob Whittaker, Flickr Africa is the continent most affected by climate change. Two-thirds of Africans make their living off the land, consequently, it is critical that the continent secures a climate-resilient economic and development path. Hosting the Africa Carbon Forum demonstrates Benin’s commitment to the Paris Agreement and to the broader prosperity of the continent. Abdoulaye Bio Tchane, Senior Minister Planning, and Development, Benin 2017–2018 Annual Report 15 CLIMATE KNOWLEDGE FORUMS Latin American and Caribbean Carbon Forum The eleventh Latin American and Caribbean Carbon Objectives: Forum (LACCF) was held in Mexico City on October 18, 2017. Themed on Advancing the Paris Agreement: „„Bring together climate stakeholders with a focus From Targets to Actions, this year’s event was held on turning climate targets and plans into action; back-to-back with the workshop Low Emission Development Strategies (LEDS) – LAC platform, „„Promote a discussion and exchange of creating the largest climate event in the region, the experiences among key players in public and 2017 Latin America and Caribbean Climate Week. private sectors; „„Provide participants with the latest information on Initially established to encourage and support climate finance, carbon pricing, sector climate participation in the Clean Development Mechanism action, and collaborative action; (CDM) under the Kyoto Protocol, this regional forum now covers a range of climate actions and policies „„Facilitate debate around international, national, and that can effectively support countries in achieving their sub-national climate change mitigation policies and commitments under the Paris Agreement. help countries accomplish their NDCs. LACCF 2017 attracted 480 participants from 38 countries. The two-day event, through its various © Andrea Di Castro, Flickr workshops, side events, and high-level plenaries, focused on carbon markets, carbon pricing, climate finance, and market-based mechanisms like the CDM, which has incentivized the registration of more than 8,000 projects in 111 countries. For countries to achieve their commitments under the Paris Agreement, the private sector and public sector must work together to mobilize investment where it’s needed. Therefore, regional events like LACCF are taking on an increasingly important role linking investment to investment-worthy opportunities for climate action. Patricia Espinosa, Executive Secretary United Nations Framework Convention on Climate Change Ms. Espinosa is also a former Minister of Foreign Affairs for Mexico 16 CF-Assist GLOBAL CAPACITY BUILDING AND KNOWLEDGE SOLUTIONS Endorsing global capacity building and innovative knowledge solutions, CF-Assist provides support in translating technical knowledge into coherent online learning packages. Through a suite of different e-courses and MOOCs, learners can access innovative and impactful information on carbon markets and pricing, Article 6 of the Paris Agreement, NDCs, and climate finance. E-learning Courses Climate Finance: Innovative Approaches in Supporting Climate Action Designing MRV Systems for Entity-Level GHG Emissions 107 Economics of Climate-Resilient Development 115 Emissions Trading Systems: Using Markets to Promote Low Emissions Development 50 Introduction to Results-Based Climate Finance Monitoring and Evaluation of Climate Mitigation Initiatives Policy Instruments for Low Emissions Development from Design to Implementation 60 Number of Participants this Fiscal Year 0 50 100 Massive Open Online Course (MOOC): Registrants by Continent Climat – de la Science à l’Action (French) Asia 7% 3% North America 4 Four-Week 6,768 Central and Course Learners Viewed South America 9% Video Talks 7,342 15,424 Learners Exercises Registered Submitted Europe 13% 121 4,249 Africa 68% Countries Forums Posts Represented Oceania 0% 2017–2018 Annual Report 17 *Note: this fiscal, the e-learning courses have not been delivered as ‘facilitated’ version in full strength, as the team is developing a new e-learning strategy to soon develop/update and encompass e-courses on imperative topics under carbon markets and pricing. 321 137 252 150 200 250 300 350 400 Personally, I had an idea of the phenomenon of climate change, having taken courses in environment during my academic course. But the educational materials that I consulted during these last weeks allowed me to have the clear ideas and the exact figures. I am delighted to have been able to take part in this experience. Now I know exactly what I have to do: ACT! I suggest that in the future such learning opportunities should be multiplied. Thank you! Participant ‘Climat – de la Science à l’Action’, MOOC 18 CF-Assist CARBON PRICING LEADERSHIP COALITION The Carbon Pricing Leadership Coalition (CPLC) was This past year, the CPLC continued its work toward launched on November 30, 2015 with the aim to the broader goal of achieving a carbon price applied advance effective carbon pricing systems and expand throughout the global economy. It made a conscious their use globally. There is a growing understanding transition from an event-focused work program to one that carbon pricing is the most effective way to that takes a strategic view on the development and mitigate climate change while contributing to application of carbon pricing in specific sectors, regions, sustainable development. With support from CF- and by thought leaders in industry and civil society. Assist, the CPLC engages partners to promote the use of carbon pricing, and to keep carbon pricing at The Secretariat of the CPLC has worked to increase the forefront of the dialogue on climate change. partners’ engagement and ownership of the activities Partners include governments, the private sector, and undertaken under the umbrella of the CPLC. New civil society, who act at global, regional, and national activities started in 2017 include a maritime workstream, levels. The CPLC provides information and knowledge a banking and finance task group, and the recently to underpin the business case for putting a price on launched construction value chain work. Additionally, carbon, which can be useful for stakeholders in their the communications working group was established consideration of the design and implementation of to improve the impact of the coalition’s messaging and carbon pricing schemes. expand the reach of knowledge products and briefs. Program Objectives: The coalition partners have a shared vision to work toward doubling the percentage of global emissions covered by explicit carbon prices to 25% by 2020, and double it again to 50% within a decade. The CPLC focuses on advocacy to: „„ Broaden carbon pricing by supporting the implementation in jurisdictions and sectors that currently do not have a price on carbon; „„ Deepen carbon pricing where it already exists by strengthening ambition and ensuring clear long-term price signals for investment, consistent with the overall goal of the Paris Agreement; „„ Enhance international cooperation by facilitating and promoting the alignment or possible convergence of carbon pricing programs; „„ Strengthen and communicate the evidence base to respond to key issues that can drive carbon pricing. 2017–2018 Annual Report 19 Forward Looking: For this approach to be successful, the CPLC will develop key performance indicators used toward the stated goal of doubling the percentage of emissions On the roadmap ahead, the CPLC will focus on used in carbon pricing. In conjunction, the CPLC will expanding and deepening engagement in Asia and on advocate for the update of carbon pricing by the strengthening its role in Latin America. These efforts private sector. will maintain current momentum, and are especially important given the political transition some key Together with holding its third High-Level Assembly in partners may undergo with new administrations. April 2018, the CPLC will convene its partners around some key events such as the Innovate4Climate The CPLC will take a strategic approach to knowledge conference in Frankfurt, the regional Carbon Forums, and information briefs, developing those in ways that Climate Week NYC, and the UNFCCC Conference inform and support the sectorial and/or regional of Parties. advocacy efforts. CPLC advocacy and the leadership of partners is evidenced not only in the uptake of These events will build on the ongoing workstreams implicit and explicit carbon pricing measures by and serve as opportunities to share experiences and governments, but also through the implementation information on developments around carbon pricing in and recognition of carbon pricing in the private sector. different contexts. The impacts of climate change are clear, from warming oceans and rising sea levels to worsening storms and droughts. Pricing carbon pollution is an important tool to help mitigate and prevent these impacts and the further effects they’re having on millions worldwide. That’s why the Carbon Pricing Leadership Coalition is catalyzing and supporting the adoption of carbon pricing globally, through collaboration among governments, businesses, and civil society. Catherine McKenna, Environment Minister Canada, and CPLC Co-Chair 20 CF-Assist NETWORKED CARBON MARKETS Article 6 of the Paris Agreement gives climate markets a needs of post-2020 climate markets, as well as the much-needed, renewed basis for support. Nonetheless, challenges that need to be addressed to seize the lack of comparability of nationally determined these opportunities. climate actions, as well as the general uncertainty on „„Released the Climate Transparency’s Brown to the protocol and functionality of international markets, Green Report in July 2017 alongside the G20 could potentially delay or undermine the environmental summit to provide a comprehensive overview of integrity of these markets. G20 countries’ transition to a low-carbon economy. Now, more than ever, there is a need to collaborate Climate Transparency, an independent global on new tools and frameworks for post-2020 market consortium, is supported by NCM and other mechanisms that help countries effectively achieve partners to enhance assessments of G20 their ambitious climate goals under the Paris Agreement. countries’ climate policies and targets. The Networked Carbon Markets (NCM) initiative is one such innovation platform that aims to develop the tools, services, and institutional frameworks required to enhance the transparency, comparability, and Goals for 2018–2019 include: fungibility of different climate actions. „„ Developing MAAP 2.0 to align with the Paris Agreement language, and broaden the use of the tool among client countries; Milestones: „„ Working with the World Bank’s ITS Blockchain Lab to develop a proof-of- „„Launched the Mitigation Action Assessment Protocol concept for the use of blockchain technology (MAAP) online interface at Innovate4Climate in as part of the potential infrastructure for Barcelona in May 2017. The MAAP tool is a post-2020 climate markets; user-friendly, independent assessment framework that seeks to drive meaningful comparability and „„ Together with CPLC and other partners, benchmarking of mitigation programs. It supports continue to technically and financially support transparency and environmental integrity to Climate Transparency in producing the 2018 increase investor confidence in the climate assets’ Brown to Green Report. viability and risks. „„Launched the MAAP Ambassador Program at the Latin American and Caribbean Carbon Forum (LACCF) in Mexico City in October 2017. This program is a free, three-month training that provides hands-on, practical guidance on the application of the MAAP interface. „„Published, “Blockchain and Emerging Digital Technologies for Enhancing post-2020 Climate Markets” in March 2018. The paper outlines the potential role blockchain and related digital technologies could play in meeting the anticipated 2017–2018 Annual Report 21 CF-Assist: Looking Ahead Through its methods, business lines, and approach to partnerships, CF-Assist continues to be an effective © bioraven, Shutterstock platform to support carbon pricing and market development activities, including the operationalization of Article 6 of the Paris Agreement. In the coming years, the program will have increased relevance in an environment where carbon pricing and markets become important tools to enhance client countries’ climate ambitions as articulated through their NDCs. Ultimately, this will enable them to participate in international and regional coalitions for climate action. The Paris Rulebook — guidelines developed through global negotiations to operationalize the Paris Agreement — is expected to be released at the end of 2018, which will likely increase the number of countries and other stakeholders interested in carbon pricing and markets. Therefore, the demand for technical advisory services provided by CF-Assist is likely to increase correspondingly. In this emerging scenario, CF-Assist is committed to advancing its country-based assistance programs to achieve their intended results: „„Strengthen its knowledge outreach mechanisms such as e-learning to maximize connections to relevant stakeholders; „„Deliver the messages forcefully through its global and regional convening platforms; „„Build and nurture partnerships with relevant networks and organizations to carry forward the promotion work on carbon pricing and markets. 22 CF-Assist CF-Assist: Around the World INNOVATIVE4CLIMATE 2017 | Barcelona, Spain Mexico LATIN AMERICA & CARIBBEAN CARGON FORUM 2017 | Mexico City, Mexico 2017 | Cotonou, Benin Colombia AFRICA CARBON FORUM Global GLOBAL CAPACITY BUILDING & KNOWLEDGE SOLUTIONS 2017–2018 Annual Report 23 Bhutan Pakistan Laos Vietnam Ethiopia India 2017 | Bangkok, Thailand ASIA PACIFIC CARBON FORUM Zimbabwe 24 CF-Assist © Dana Smillie / World Bank, Flickr 4 CF-Assist CF-ASSIST THE WORLD BANK 1818 H STREET, NW WASHINGTON, DC 20433, USA