The Partnership for Market Readiness (PMR) is a partnership of developed and developing countries administered by the World Bank, established to use market instruments to scale up mitigation efforts predominantly in middle income countries. Although initially geared towards promoting market readiness for the anticipated emergence of international carbon markets, this approach has become more flexible, providing grants and technical support for proposals for implementation of market tools that contribute to mitigation efforts.
|Name of the Fund||The Partnership for Market Readiness|
|Official Fund Website||https://www.thepmr.org/|
|Proposed Life of Fund||Undetermined.|
|Objectives||PMR’s objectives are:
|Financial inputs and fund size||As of November 2020, the cumulative pledges to the Fund amount to approximately USD 130 million.
The contributing countries are: Australia, Denmark, the European Commission, Finland, Germany, Japan, Netherlands, Norway, Spain, Sweden, Switzerland, United Kingdom and United States.
The contributions from donor countries are included as Official Development Assistance (ODA).
|Activities Supported||The PMR supports activities that use market instruments to scale up mitigation efforts in developing countries.
More specifically, it helps countries prepare carbon policy choices and their future implementation by focusing on the readiness components that include:
For those countries ready to design and implement a carbon pricing instrument, the PMR provides a platform to pilot. Developing readiness components that support the implementation of carbon pricing instruments for GHG mitigation and piloting carbon pricing instruments come together in the PMR’s Country Work, which is embodied in the Market Readiness Proposal (MRP) for which the PMR provides grant financing.
Through its Technical Work, the PMR generates knowledge products and exchanges on technical elements related to carbon pricing. It also establishes common standards and approaches for GHG mitigation.
In its Policy Work, the PMR offers “in-depth support to countries to model the costs and benefits of policy options, analyse interactions between policies, and integrate this analysis into low-carbon development plans and strategies.”
|Secretariat or Administrative Unit||The World Bank serves as the Secretariat of the PMR. It provides secretariat services and technical support for day-to-day operations.|
|Trustee||The World Bank is the permanent trustee.|
Fund Finance and Access Modalities
|Conditions and Eligibility Requirements||To become eligible to access funding, a country needs to complete a Market Readiness Proposal (MRP), which is an action plan for designing and piloting market-based instruments for GHG mitigation.
There are 19 ‘Implementing Country Participants’ in the PMR, including a number of middle income countries. The 19 PMR programmes are in Argentina, Brazil, Chile, China, Colombia, Costa Rica, India, Indonesia, Jordan, Mexico, Morocco, Peru, South Africa, Sri Lanka, Thailand, Tunisia, Turkey, Ukraine, and Vietnam.
There are also four developing countries among the PMR technical partners, which do include developed countries, namely Côte d’Ivoire, Kazakhstan, Panama and the Philippines.
The country eligibility is not restricted to ODA eligible countries.
|Accessing the Fund||
|Safeguards, Gender and Indigenous Peoples||
|Decision Making Structure||The PMR is governed by the Participant Assembly, the Technical Partners and the Delivery Partner.
Decisions about PMR funding allocation are made by the Partnership Assembly, which meets two to three times a year. Meetings are co-chaired by elected participants – one from the Implementing Country Participants and one from the Contributing Participants. Decisions of the Partnership Assembly are made by PMR Participants on a consensus basis. In the case that all efforts to reach a consensus have been exhausted and no decision has been reached, a decision will be taken by a two-thirds majority of contributing participants and the votes of two-thirds of Implementing Country Participants.
|Accountability Mechanisms||There are three existing mechanisms of monitoring and evaluation.
Independent Evaluation at the programme level
Monitoring and Evaluation at the country level
Monitoring and Evaluation carried out by PMR Participants
|Participation of Observers and Stakeholders||Stakeholders participate in decision-making through their representation in the Participant Assembly.
PMR Observers include countries, multilateral development banks, UN organisations and other non-governmental organisations. The observers are associated with the dialogue on market readiness and market-based approaches at PMR meetings and events. In addition, technical experts provide feedbacks on country proposals and participate to workshops and trainings.
|Transparency and Information Disclosure||While to our knowledge, PMR does not have a formal information disclosure policy, the Partnership Assembly meetings’ documentations and presentations are publicly available here.
Details on individual projects are made available at: https://www.thepmr.org/pmrimplements/0
|Other Issues Raised||Over the years, some members of the Participant Assembly have expressed concern with PMR Secretariat’s transparency regarding implementation grant and budget allocation decisions, reporting, and consultant selection. Additionally, some members of the Participant Assembly wanted more information about the Secretariat’s coordination and relationship with the World Bank, as well as greater clarity about the eligibility and selection of non-voting Participant Assembly members and Technical Partners TPs.
In the past, the non-governmental organisation Carbon Trade Watch criticised the operations and approach of the PMR, broadly challenging its focus on market readiness, which they argued “is designed to expand a carbon trading system that has proven to be environmentally ineffective and socially unjust.” At the time of its establishment, they critiqued the PMR for “pre-empt[ing] international negotiations on controversial new carbon markets” during the UN climate negotiations in Durban in 2011. They noted that the market proposals favoured by the PMR, including “sectoral crediting,” were controversial within the UNFCCC negotiations, and accused PMR of bypassing negotiations entirely. Carbon Trade Watch also pointed out that the PMR grants provided only part of the cost of project development.