Papua New Guinea

Implementation period: 2024-2025 Funding amount: US$200,000 Window: Just-in-Time

The Government of Papua New Guinea (PNG) has made significant progress in preparing for international carbon markets through the National Climate Change (Management) Carbon Markets Regulation (2024) and the institutional framework established under the 2015 Climate Change Management Act (as amended).  

The PMI-supported assessment noted key actions for the government: In the short term, finalize and operationalize the National Climate Change Board (NCCB), develop a Carbon Market Strategy under NCCB oversight, and create an operations manual to support the 2024 Carbon Market Regulation. In the medium term, set sectoral mitigation targets and roadmaps, especially for energy, and develop a Long-Term Low-Emissions Development Strategy to achieve carbon neutrality as per the NDC.

Objectives & Activities

The PMI Program aims to support the country by identifying gaps and areas where PNG could benefit from additional support for strengthening the enabling environment for its participation in international carbon markets. The support is provided through technical assistance on:

• Desk review of country readiness for international carbon markets: Rapidly assess PNG’s capacity for post-2020 carbon markets, focusing on credit types, double-counting, Article 6 reporting, and gaps.
• Review of domestic & international carbon pricing engagements: Analyze prior/current policies and support, NDC-tied mitigation opportunities, revenue potential, and institutional and legal arrangements for carbon credit transfers.
• Stakeholder & institutional mapping: Identify relevant government agencies, organizations, industry and community actors, and describe existing approval and transaction processes under Kyoto/voluntary schemes and their relevance for Article 6 operations.
• Data review & Measurement, Reporting, and Verification (MRV) systems: Summarize GHG data tracking, MRV/registry readiness, and highlight technical or policy gaps.
• Overall readiness analysis: Combine findings to assess PNG’s carbon market readiness and identify major issues.
• Gaps & roadmap analysis: Offer prioritized recommendations and a roadmap for closing gaps and boosting NDC outcomes.

Looking ahead, the Partnership for Market Implementation (PMI) Program in PNG is expected to build on the recommendations from the assessments and identify the support needs to advance the development of carbon markets in the country.