Towards a 2015 Global Climate Agreement: Role of the LAC region in Contributing Towards Global Efforts

John Kilani, Director, UNFCCC

Sustainable Development Mechanisms

Latin American and Caribbean Carbon ForumBogota, 5 September 2014

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Overview

• Shape of the 2015 agreement

• Milestones on the road to Paris

• Interplay of finance and markets

• Potential role of the CDM

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Some fundamentals

Scale – to match the needed decoupling of net emissions

and economic output

Broad and deep coverage – nations, sub-national

authorities, sectors and multinational corporations

Comprehensiveness – to address all dimensions of the climate challenge, including

on development

Permanence – through lasting international

arrangements and strong domestic legal foundations

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An outcome with interlinked components

• New legally binding agreement under Convention, supplemented by other decisions

◦ To balance the political deal

◦ To strengthen the implementation architecture

◦ To launch work programmes (2016-2020)

• Work originating from inside and outside the ADP

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… but with many open questions

Long-term approach based on science and a global emission pathway

Scaled up cooperation at all levels – Parties, cities,

subnational, multinationals

Alignment of economic incentives with climate

imperatives (internationally and nationally)

National determination of commitments, periodically made progressively deeper

over the long term

How to reflect and strengthen the institutions of finance, technology and

capacity building?

How to express adaptation?

How to ensure transparency?

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Preparations for the October ADP

• Co-chairs have been active, based on June progress

◦ Non-paper containing Parties’ views and proposals

◦ Draft decision on INDC-related information

◦ Draft decision on speed pre-2020 implementation

◦ A reflections note with status and priorities

• Seeking early decision on sessions next year

• INDCs expected first quarter of 2015

• Text of agreement available long before Paris

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The LAAC Region and the 2015 agreement

• Help define the agreement

◦ Formulation of long-term mitigation

◦ Determine the integration of adaptation

◦ Ensure a considered role for markets

• Showcase LAAC-suitable actions during TEMs

• Work with GCF to generate lessons on finance

• Ensure effective support via finance and markets

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Finance and the CDM

• CDM has been key delivery tool under Kyoto

• Finance

• Technology

• Capacity-building

• World’s only multilateral offset programme

• Value in harmonized market with common standards

• Value in having a mechanism ready and operational

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Movements in the CDM

• NMM often expressed as a movement beyond CDM

• Increased scale

• Net mitigation (not only offsetting)

• CDM simplification

• Enhanced standardization and objectivity (Board/secretariat taking on the complexity)

• Simplification of methodologies and processes

• Broadening the CDM’s use

• Compliance and voluntary markets

• Delivery mechanisms for results-based finance

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What lies ahead for the CDM?

Keep CDM for LDCs?

Incorporation in 2015 agreement, strengthen implementation if needed

Incorporation in results-based finance, to deliver finance and verify results

Offsets for national-level trading and tax obligations

Standard for domestic offset provision

Increased use by voluntary market

International transport sectors

Thank you

Latin American and Caribbean Carbon ForumBogota, 5 September 2014