Partnership for Market Readiness (PMR) and Implementation (PMI)

Carbon markets are a cost-effective way to mitigate emissions of greenhouse gases. The Partnership for Market Implementation (PMI) aims to support partner countries in designing and implementing carbon pricing instruments that meet their national needs and development priorities. To this end, the project supports partner countries in raising their ambitions in line with their mitigation potential. It promotes the development of capacities, infrastructures and policy and regulatory frameworks for the establishment of carbon pricing instruments. In addition, a platform is provided for technical discussions and information exchange on carbon pricing and other mitigation policy instruments.

Project was mainly connected in Ukraine with MRV development, but intends to support in creation of effective ETS covering process of setting the cap and the process of allocating allowaces.

The Partnership will:

• Support 30 countries and jurisdictions in the development and implementation of carbon pricing instruments to meet their NDC targets and long-term decarbonization strategies
• Help countries participate in the operationalization of Article 6 of the Paris Agreement, which would facilitate international cooperation on carbon markets and promote the convergence of national carbon pricing instruments
• Help countries identify and implement best practice approaches and, where relevant, help them achieve compatibility in design with other carbon pricing efforts and markets
• Inform the national and international policy discussions on greenhouse gas mitigation by sharing lessons learned and by providing a platform for collective innovation on carbon pricing instruments
• Develop a comprehensive knowledge base on carbon pricing instruments and market mechanisms, and facilitate information exchange through technical discussions and dissemination of knowledge products

Ukraine will conduct analysis to support development of carbon pricing instruments will be focused on:

• The cap and trade options, and other existing direct carbon pricing mechanisms
• ETS vs. Carbon tax
• The transition from one instrument to another
• The key challenges of introducing ETS as opposed to other policy instruments