We have published our new policy paper “The Mitigation Action Facility’s strategy for supporting carbon markets through Technical Cooperation”. The paper provides guidance to potential applicants and Implementation Organisations (IO) on how the Mitigation Action Facility supports carbon markets as part of its Technical Cooperation (TC) component.
The Mitigation Action Facility funds ambitious climate mitigation projects that implement countries’ Nationally Determined Contributions (NDCs) and long-term strategies under the Paris Agreement. Through our TC support, we strengthen capacities, frameworks, and systems that enable transformational change and enhance the readiness of emerging and developing economies (EMDEs) to participate in high-integrity carbon markets.
The policy paper outlines three key areas where TC funds can be used to advance carbon markets:
- Preparation of carbon market activities – including methodology development, activity design documents, and registration under recognized standards.
- Support for carbon market public goods – such as standardised baselines and tools that enable replication and scaling.
- Enabling environments – including legal frameworks, capacity building, and infrastructure for long-term market participation.
These specialised TC funds will be available to projects in their pre-proposal phases where they can also benefit from enhanced support and guidance by the Mitigation Action Facility. For projects already in the implementation phase, the funding decision for such components will also be made on a case-by-case basis.
All activities are fully aligned with the Paris Agreement and Article 6 standards, ensuring environmental integrity, additionality, and transparency. Importantly, mitigation outcomes financed with the Mitigation Action Facility’s TC funds must not directly generate tradable credits for compliance markets, safeguarding the role of ODA-eligible climate finance.
By releasing this policy paper, we underscore our commitment to strengthening carbon market readiness in partner countries, while contributing to transformational climate action and the achievement of the Paris Agreement goals.