Post 2012 Policy Landscape for Global Carbon Market
-
Upload
unfccc -
Category
Technology
-
view
75 -
download
0
description
Transcript of Post 2012 Policy Landscape for Global Carbon Market
![Page 1: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/1.jpg)
UNFCCC secretariat, Sustainable Development Mechanisms programme
Robin Rix, Lead, Strategy Development
Post-2020 Policy Landscape for Global Carbon Markets
Carbon Expo
Barcelona, 30 May 2013
![Page 2: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/2.jpg)
2
1. Global markets are in turmoil
2. But positive signs are emerging
3. The future world is taking shape
![Page 3: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/3.jpg)
3
1. Global markets are in turmoil
2. But positive signs are emerging
3. The future world is taking shape
![Page 4: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/4.jpg)
4
KP2 is limited (~15% of global emissions)
Ukraine -24
Monaco -22
EU, Croatia, Iceland
-20
Liechtenstein, Norway
-16
Switzerland -15.8
Belarus -12
Kazakhstan -5
Australia -0.5
% below base year or period (usually 1990)
![Page 5: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/5.jpg)
5
Convention pledges are uncertain
42 developed countries
• Including US, Russia, Japan, Canada
• Not always unconditional
• Process underway to clarify targets, including use of market
mechanisms
55 developing countries (plus African Group)
• Including Brazil, China, India, South Africa
• Diverse in nature, ranging from project-based to economy-wide
proposals
• Process underway to understand this diversity
![Page 6: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/6.jpg)
6
Surprising growth of joint implementation
0.12 / 0
4.7 / 1.3
28.0 / 2.9
2011
2012
ERU issuances by year (mn)
Track 1 / Track 2
517.1 / 9.1
86.7 / 6.8
2010
> 800 mn as at May 2013
![Page 7: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/7.jpg)
7
1. Global markets are in turmoil
2. But positive signs are emerging
3. The future world is taking shape
![Page 8: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/8.jpg)
8
Climate change will require a policy response
Above: Economist.
Below: Canadian Press/Jonathan Hayward/Files, Postmedia
. David McNew/Getty Images
![Page 9: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/9.jpg)
9
Contours of the policy response are emerging
Need to speed up – and scale up – action
This action has three key pillars:
(a) International
(b) Domestic
(c) Private sector
Overall need for collaboration, collective action,
and innovation
![Page 10: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/10.jpg)
10
Markets have shown their success in mitigation
Almost 7000 registered CDM projects in over 80 countries
Almost 150 registered CDM programmes of activities
Over 1.3 billion credits issued to date
![Page 11: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/11.jpg)
11
… and in providing finance and capacity
$362 billion Total climate finance mobilized by the CDM
• Tool to promote sustainable development
• Tool to enhance knowledge and capacity
![Page 12: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/12.jpg)
Carbon pricing as a policy tool of choice
http://cdn.howtogeek.com/wp-content/uploads/2011/07/worldmapswallpapercollection11.jpg
![Page 13: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/13.jpg)
13
Moving toward broader coverage
![Page 14: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/14.jpg)
14
1. Global markets are in turmoil
2. But positive signs are emerging
3. The future world is taking shape
![Page 15: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/15.jpg)
15
Parties support a role for markets
• Acknowledgement that Parties may develop and
implement mechanisms (independently or jointly)
• Acknowledgement that such mechanisms may include
market-based mechanisms
• Affirmation that such mechanisms can facilitate an
increase in global mitigation ambition, particularly by
developed countries
![Page 16: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/16.jpg)
16
Parties are now negotiating the rules
• All Parties agree that mechanisms must meet
environmental integrity standards:
• Real, permanent, additional, and verified mitigation outcomes
• Avoid double counting of effort
• Net decrease and/or avoidance of emissions
• Question is how mechanisms used to meet UNFCCC
mitigation targets will be determined to meet these
standards
![Page 17: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/17.jpg)
17
FVA
• A “framework for various approaches”
• Why it is needed
• What mechanisms it will cover
• How it will ensure environmental integrity
• How it will record and track mitigation efforts
• Who will administer it
• To be elaborated in 2013
• Submission deadline of 25 March 2013 • SBSTA agenda in June and November 2013 • COP19 decision in November 2013
![Page 18: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/18.jpg)
18
NMM
• The new market-based mechanism
• Key characteristics
• Net decrease in emissions
• Coverage of broad segments
(from projects to sectors)
• Crediting and/or trading
• Ambitious reference levels
• Sustainable development
• Participation by private-sector entities
• Prompt start
• To be elaborated in 2013, parallel process to framework
![Page 19: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/19.jpg)
19
CDM review
Launch of revision to CDM modalities and procedures
• Under SBI, to be concluded by Warsaw
• Inputs via submissions, Executive Board recommendations, and
secretariat-organized workshop
• Input from UNFCCC secretariat on the basis of its experience:
• Governance improvements (voting, conflict of interest, term limits)
• Better monitoring/assessment of sustainable development benefits
• Streamlining of programmatic CDM, top-down methodology
development
• Delegation, avoid enshrining detail in hard-to-change documents
![Page 20: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/20.jpg)
20
JI review
Relaunch of revision to JI guidelines
• Under SBI, to be concluded by Warsaw
• Inputs via submissions and secretariat compilation
• “Key attributes” to include:
• Single track
• Unified/aligned accreditation procedures
• Appeals process
• Mandatory host Party requirements
• To consider additionality and issuance innovations
![Page 21: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/21.jpg)
21
A busy year ahead for mechanisms
Q1 Q2 Q3 Q4
11-22 Nov (Warsaw)
COP19/CMP9
ADP, SBI/SBSTA39
3-14 Jun (Bonn)
ADP
SBI/SBSTA38
29 Apr-3 May
(Bonn)
ADP
CDM EB recommendations
Submissions (25 March)
Submissions (18 February) CMP
Secretariat compilation report
CDM
J I
Submissions (25 March) COP FVA/
NMM
CMP SBI SBI
SBI SBI
SBSTA SBSTA
?
?
?
![Page 22: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/22.jpg)
22
Can Parties make progress?
Design/reform of tools
(FVA, NMM, CDM, JI)
Primarily technical
SBI/SBSTA
Use/role of such tools,
particularly non-UN mechanisms
Primarily political
ADP
![Page 23: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/23.jpg)
23
Emerging toolkit of mechanisms
• All countries mitigate by using appropriate mechanisms
• Can involve markets, but not necessarily
• Can be implemented independently or jointly
• Can be UN-administered, but not necessarily
• Each country can choose what to do with the quantum
of mitigation that is achieved by each mechanism
• Keep it, count towards its domestic mitigation target
• Transfer it internationally
![Page 24: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/24.jpg)
24
From here to there
• Avoid paralysis of requiring full certainty on future
use/role before elaborating the design
• Use pre-2020 reporting as an opportunity
• Common tabular format (decision 19/CP.18)
• Means to prove/report/demonstrate quality and quantity control
• Explore models for evaluating non-UN mechanisms
• By country (e.g. eligibility criteria)
• By mechanism
• By each transfer of units
![Page 25: Post 2012 Policy Landscape for Global Carbon Market](https://reader033.fdocuments.net/reader033/viewer/2022052505/55641a44d8b42a69298b45d9/html5/thumbnails/25.jpg)
25
Looking to the future
• There is more common ground than often feared:
• Universal support for ensuring that all mechanisms meet robust
environmental integrity standards
• Interest in brainstorming models for considering whether and how
different mechanisms meet these standards
• Importance of helping countries to develop and use mechanisms
(market-based and non-market-based)
• Need to build trust, comfort, confidence:
• Markets are a leap of faith for some Parties – and private sector
• Need for prompt action in light of declining capacity
• Get tools ready for the time when the world will be ready to use them