The Partnership for Market Readiness (PMR), which brings together more than 30 countries, provides funding and technical assistance for supporting countries to prepare and implement cost effective instruments, including carbon pricing policies. Since the launch of the PMR in 2011, the PMR has been supporting the PMR Implementing Countries to prepare their Market Readiness Proposals (MRPs) that lay out country’s readiness plan for developing and implementing carbon pricing and other mitigation instruments. To complement the countries’ domestic efforts, the PMR has developed a Technical Work Program that includes technical components such as monitoring, reporting and verification (MRV), baseline setting, data management and registry.
The relevance of PMR is being sought to provide guidance on carbon pricing mechanism. The Philippine Senate presented a resolution directing the Committee on Climate change and Ways and Means to look into the viability of establishing carbon pricing mechanisms in the country to ensure its contribution in the attainment of targets for GHG emissions reductions set in the country’s INDC. The Senate Resolution highlighted the need to ensure that the introduction of carbon pricing legislation is part of a holistic approach to pricing that considers the impact and cost-effectiveness of other policy instruments that discourage the emission of GHG as well as policies which may inadvertently encourage emissions.
The primary objective of this advisory services & analytics (“ASA”) is to assist the Philippine government to review available market-based instruments, such as carbon tax, domestic ETS, and offset-mechanism, and their combinations, to have a clear idea about the carbon pricing mechanism(s) and their combinations most effective and feasible in [energy/transport/waste/fiscal] sector to prepare and attain the ambitious but realistic NDC mitigation goals. The outputs are envisioned to help facilitate informed dialogue among key stakeholders and policy-making processes for the country’s preparation of the 1st NDC in the short-term, and the country’s attainment of its NDC mitigation objectives in the mid-/long-term.