The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through Nationally Determined Contributions (NDCs). As the risks of climate change mount, there is an urgent need to raise the ambition of NDCs to stay well-below 2°C. Achieving and enhancing these NDC goals will require substantial international and national financing to facilitate cost-effective climate change mitigation. Climate markets and carbon pricing offer the opportunity to increase the resources mobilized both from the public and private sector, reduce the financial burden of NDC implementation and increase global ambition on climate.
The World Bank and Japan's Ministry of Environment will collaborate on the Joint Crediting Mechanism (JCM), to support the establishment of climate markets and carbon pricing, through the World Bank’s various initiatives and programs. A Memorandum of Cooperation (MoC) was signed between the World Bank and Japan's Ministry of Environment to jointly develop and implement programs.
The collaboration focuses on the followings:
Partnership for Market Readiness (PMR): Japan's Ministry of Environment will continue to support the PMR and its successor program.
Piloting Article 6 of the Paris Agreement: The World Bank and Japan's Ministry of Environment will explore an opportunity to cooperate for piloting Article 6 and scaling up the JCM projects.
Innovate4Climate (I4C): Japan's Ministry of Environment will continue to support and participate in Innovate4Climate (I4C) through showcasing its initiatives and making the business case for climate action.