The PMR is a partnership of developed and developing countries administered by the World Bank, established to use market instruments to scale up mitigation efforts 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 Fund
||The Partnership for Market Readiness
|Official Fund Website
|Proposed Life of Fund
||Each project is expected to last 3-5 years, but the PMR does not have a sunset clause.
||Governed by the Participant Assembly, observer countries and organizations, technical experts, and a Secretariat, trustee and delivery partner. The Participant Assembly is the decision-making body made up of representatives from all of the 17 Implementing Country Participants (countries that participate in the PMR) and 13 Contributing Participants (donors that have contributed financially to the PMR). The World Bank serves as the secretariat of the PMR to provide secretariat services and technical support for day-to-day operations.
- Providing grants for countries to build market readiness components
- Piloting, testing, and sequencing new concepts for market instruments
- Creating a platform for sharing experiences and information about market readiness, promote south-south cooperation and innovation
- Creating and disseminating a body of knowledge on market instruments that could be tapped for country-specific applications
- Sharing lessons learned, including with the UNFCCC
||Activities that use market instruments to scale up mitigation efforts in developing countries.
|Conditions and Eligibility Requirements
||Countries interested in becoming Implementing Country Participants complete an expression of interest form and submit it for consideration by the PMR Partnership Assembly (although the PMR has currently reached its capacity and is no longer accepting expressions of interest).
|Accessing the Fund
||Countries interested in becoming Implementing Country Participants complete an expression of interest form and submit it for consideration by the PMR Partnership Assembly (although the PMR has currently reached its capacity and is no longer accepting expressions of interest).Preparation funding of USD 350,000 can be accessed during the preparation phase of a project after the Country Participant submits a Market Readiness Proposal. Implementation funding, which falls between USD 3 million and 8 million, is delivered after readiness components outlined in the Proposal are implemented.
|Decision Making Structure
||Decisions about PMR funding allocation are made by the Partnership Assembly, which meets 2-3 times a year. Meetings are co-chaired by elected participants – one from the implemented Country Participants and one from the Contributing Participants. Decisions of the Partnership Assembly are made by PMR Participants on a consensus basis, unless all efforts to reach a consensus have been exhausted and no decision has been reached, decision will be taken by ⅔ majority of contributing participants and ⅔ of Implementing Country Participants.
|Non-Government Stakeholder Participation
||The governance framework presents the intention of the PMR to carry out “capacity building activities that aim to engage with key stakeholders early in the planning process.” An independent review of the PMR states that “effectiveness could be further increased in the future with greater engagement of other multilateral agencies, national and subnational governments, the private sector, and civil society”.
||No information on disclosure policy published on website. An independent review of the PMR noted that some stakeholders in the PMR process expressed concerns about insufficient transparency in budget allocation and PA consultant selection.
||Some PA members have expressed concern with with PMR Secretariat’s transparency regarding implementation grant and budget allocation decisions, reporting, and consultant selection. Additionally, some PAs wanted more information about the Secretariat’s coordination and relationship with the World Bank. Some PAs have requested greater clarity about the eligibility and selection of non-voting PA members, TPs. Some PA members have also raised concerns about electronic decision-making for PA endorsement of two final Market Readiness Proposals in 2014. Additionally, PAs have questioned the number and content of meetings – some PAs have complained that the meetings are too full, while others have questioned the need for three yearly meetings as most of the MRPs have been finalized already.Carbon Trade Watch criticises the operations and approach of the PMR, broadly challenging its focus on market readiness, which they argue “is designed to expand a carbon trading system that has proven to be environmentally ineffective and socially unjust.” They critique the PMR for “pre-empt[ing] international negotiations on controversial new carbon markets” during the UN climate negotiations in Durban. They note that the market proposals favored by the PMR, including “sectoral crediting,” have been controversial within the UNFCCC negotiations, and accuse PMR of bypassing negotiations entirely. CTW also points out that the grants provided are expected to provide only part of the cost of project development.
Relationship with Official Development Assistance
|Inclusion as Official Development Assistance
|Financial Instrument/ Delivery Mechanism Used (e.g. grant, loan)
|Nature of Recipient Country Involvement
||Middle income countries – Brazil, Chile, China, Colombia, Costa Rica, India, Indonesia, Jordan, Mexico, Morocco, South Africa, Turkey, Thailand, Ukraine, and Vietnam.