The World Bank has launched the Carbon Markets Engagement Roadmap at COP28, aiming to expand high-integrity carbon markets and mobilize finance. The initiative sets a goal to support 15 countries in generating forest carbon credits by 2028. The roadmap also seeks to advance large-scale emissions reduction programs within the Bank’s portfolio and work with stakeholders to address bottlenecks in scaling carbon markets.
The World Bank reports having helped generate five million credits for compliance and voluntary carbon markets, with hopes of reaching 126 million credits by 2028. The organization manages the Carbon Asset Tracking System (CATS), a registry system that facilitates the issuance and transaction of carbon credits supported by its funds.
Additionally, the World Bank is aiding countries in building capacity for developing institutional frameworks, attracting private investment, maintaining credit integrity, and ensuring benefits for forest communities and Indigenous peoples. On a global scale, partnerships are being formed to remove impediments for market expansion. This includes setting standards, clarifying legal aspects of carbon credits, and helping countries establish infrastructure for connecting to a global market.
Key initiatives involve launching an annual report on trends in international carbon markets and supporting sustainable land use operations. In Uzbekistan, the first policy crediting program was initiated to incentivize tariff reforms in the energy sector.
By COP29, the World Bank aims to pay $175 million to developing countries for verified forest carbon credits while providing excess credits available for markets or Nationally Determined Contributions. Collaboration with partners has been emphasized to enhance transparency and support representation from developing countries.
Next steps include providing updates on the Engagement Roadmap at COP29 and launching three deliverables: a Country Guidance Note, a report on financial considerations, and a roadmap for interoperable market infrastructure. These efforts aim to unlock potential climate finance benefits for vulnerable communities impacted by climate change.