Partnership for Market Readiness (PMR)

Project Dates: November 2016 - January 2022

PROJECT OBJECTIVE

This project aims to enhance Indonesia's readiness to implement market-based instruments (MBIs) to reduce GHG emissions, as part of its climate commitments (NDC). The focus is on: Developing GHG emissions profiles; Implementing MRV systems in the power and energy-intensive industries; Piloting a market-based policy framework to incentivize emission reductions; Supporting the transition to low-carbon growth aligned with the Partnership for Market Readiness (PMR) and Paris Agreement.

PROJECT DESCRIPTION

Climate change poses serious risks to Indonesia, a country of many low-lying islands and fragile ecosystems. Rising GHG emissions, driven by population and economic growth, make climate action increasingly urgent.

Indonesia supports market-based approaches to emissions reduction, as reflected in its commitment under the Paris Agreement. To prepare for such mechanisms, Indonesia developed a Market Readiness Proposal (MRP) under the World Bank’s Partnership for Market Readiness (PMR), endorsed in 2013.

With funding from the PMR, the project is implemented by UNDP Indonesia, with the Coordinating Ministry of Economic Affairs as the lead government partner. Key ministries and stakeholders, including PLN and industry associations, are also involved.

The project aims to develop GHG emissions profiles and MRV systems for the power and industrial sectors, and pilot a market-based instrument (MBI) framework. Implemented through UNDP’s Direct Implementation Modality (DIM), it will strengthen Indonesia’s readiness to use carbon markets to meet its NDC targets.