Financing the Low-Carbon Transition
Our Mission
What is our vision?
Accelerate sustainable development by enhancing climate action and ambition thorough sound policy design and the use of carbon pricing instruments.
Our Mandate
The Climate Warehouse is within the World Bank’s Carbon Finance and Economics (FE) unit. The FE team aims to help client countries leverage carbon markets and pricing to increase the resources mobilized towards NDC implementation and enhancement of global climate ambition.
To fulfil this objective, FE carries out a broad program of interrelated activities:
- Develops and pilots concepts and products and assists client countries in implementing them through the Partnership for Market Implementation (PMI) and the Climate Warehouse’s Operationalizing Article 6 work stream.
- Produces analytical outcomes that condense lessons learnt and inform the above mentioned activities, such as the flagship report State & Trends of Carbon Pricing.
- Disseminates its work through outreach events like Innovate4Climate and the Regional Climate Weeks
These pilots form the basis for dialogue with governments on key institutional and capacity building requirements that need to be met for decision-making on Article 6. Together, this range of services will support our client countries’ participation in the next generation of climate markets, including capacity building and the development of institutional and governance processes.
How Climate Warehouse Works
The Climate Warehouse work program initiated analytical and piloting work to kickstart the operationalization of Article 6 through a learning-by-doing approach, aiming to ensure that climate markets could be rapidly scaled up when the Paris Agreement became effective in 2020.
The objective was to produce analytical and technical outputs to enable the World Bank’s client countries to participate in Article 6 transactions and help shape the next generation of climate markets.
The Bank has four complementary work streams as shown in the chart below:
Donors
Partners
The MDB Working Group was established to harmonize approaches toward climate markets. In addition to the World Bank Group (IBRD, IFC, MIGA), the group includes ADB, AfDB, EIB, EBRD, IDB, and IsDB.
The Advisory Group consists of 3 donor governments, 3 project implementing entities, and 20 private sector companies, and has been constituted to periodically provide inputs toward the work program and guide its development.
Convened by International Emissions Trading Association (IETA) and the World Bank, the Working Group explores opportunities to streamline and harmonize process flows for creating and transferring assets in order to reduce transaction costs. The members include the American Carbon Registry, Architecture for REDD+ Transactions; Climate Action Reserve; Gold Standard; Verra; and Global Carbon Council.