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The Project aims to provide an assessment on the impacts of a carbon pricing as an essential component of the policy design process. Carbon pricing instruments (CPIs) can have different impacts on different stakeholders, for instance increasing the costs for businesses, which can in turn impact employment, and changing the prices of goods bought by households. Understanding these impacts, both at the macro level (e.g., GDP impacts, national GHG emissions) and micro level (e.g. impact on households or sub-sectors/businesses) can inform policy makers when designing a CPI.
The objective of the project is to (1) design a voluntary labelling program for carbon emission disclosure and emission reduction outcomes to recognize good practice in reporting and disclosing GHG emission and emission reduction outcome, (2) pilot the program in three sectors: textile & garment, food processing & beverage and RE Plants and (3) develop concrete recommendations for implementing a voluntary carbon labelling program in Vietnam including the roadmap and action plan for roll out phase based on the result of the pilot phase.
The project offers a simulation tool and policy recommendations for implementing an Emission Trade System (ETS) in Vietnam, raising awareness of carbon pricing and supporting the energy transition.
In this technical assistance, ETP, in a close cooperation with MOF and relevant government agencies, will conduct assessments and consultations with relevant governmental authorities, international development agencies, exchange and financial institutions, potential market makers and players and other key stakeholders to evaluate the existing legal, institutional and infrastructure conditions of Vietnam and to identify the gaps to be fulfilled for development of the carbon market and carbon trade exchange (CTX) in Vietnam.
The study will assess CBAM's impacts on exports, energy transition, economy, and NDC implementation in Vietnam. It will provide recommendations for minimizing negative impacts and implementing a domestic carbon market and carbon tax system.
The Partnership for Market Implementation (PMI) assists countries to design, pilot, and implement pricing instruments aligned with their development priorities. A 10-year program with a capitalization target of US$250 million, the Partnership brings an ambitious and long-term vision for the viability of carbon markets to its support for programs and policies -- across jurisdictions and sectors -- that introduce a strong price signal on carbon emissions and contribute to the Paris Agreement goal of limiting temperature rise to 1.5°C.
From Readiness : PMI is the successor program to the World Bank’s successful Partnership for Market Readiness (PMR) effort that, from 2011 to 2021, supported emerging economies and developing countries to design and deploy carbon pricing and market instruments to facilitate the reduction of emissions. PMR provided funding and technical assistance to 23 countries, accounting for 46% of global greenhouse gas emissions, all of whom now have the basic nuts and bolts for establishing a carbon pricing system.
To Implementation : PMI responds to the increased demand for carbon pricing implementation support from countries. Over half --69 of 195 countries -- have indicated that they are planning or considering the use of carbon pricing to meet their Nationally Determined Contributions (NDCs).
The Partnership launched in 2021 to help countries embarking on carbon pricing to move from readiness to rollout.