Paris Agreements Article 6 Update Stefano De Clara Director for - PowerPoint PPT Presentation

Paris Agreement’s Article 6 Update Stefano De Clara Director for International Policy, IETA July 24, 2018

The Paris Agreement: An Overview • • Article 2: Long-term goal Article 3: Progressing effort • • Article 4: NDCs Article 5: REDD+ • • Article 6: Cooperative Approaches Article 7: Adaptation • • Article 8: Loss and Damage Article 9: Finance • • Article 10: Tech-transfer Article 11: Capacity Building • • Article 13: Transparency Article 14: Global Stock-Take • Article 15: Implementation

Article 6 is a new market policy framework Key provisions • 6.2, 6.3: Internationally transferred mitigation outcomes with robust accounting to avoid double counting (ITMO) • 6.4: New emissions mitigation mechanism to support sustainable development (EMM) • 6.8: Non-market approaches of cooperation 3

The Rulebook  Guidance on features of NDCs ;  Guidance for the information to be provided by parties in order to facilitate clarity, transparency and understanding of NDCs ;  Guidance for accounting for parties’ NDCs ;  Guidance on avoiding double counting  Guidance on cooperative approaches ,  Rules, modalities and procedures of Sustainable Development Mechanism  Work programme under the framework for non-market approaches to sustainable development;  Modalities and procedures for the operation and use of a public registry ;  Guidance on adaptation communication, including as a component of NDCs;  Modalities for the accounting of financial resources ;  Elaboration of the technology framework ;  Develop modalities for the global stocktake  Response measures  …………… 4

Paris Agreement Work Programme: overview Inputs from COP • Institutional • arrangements on NDC registry (Art 4.12) • capacity-building Adaptation registry (Art 7.12) • Scope/modalities for technology • Further guidance for mechanism assessment • mitigation section of Common timeframes (Art.4.10) • 1/CP21 Enhancing education, training, • Adaptation comms public awareness, participation • Transparency and access to information (Art 12) • • Global stocktake Identification of the information to • Implementation / be provided by Parties in compliance accordance with Art.9.5 • • Adaptation Fund Response measures (SBSTA&SBI) • Possible additional measures • Technology Framework (Art.10.4) • Cooperative approaches (Art. 6.2) • Rules, modalities, procedures for the mechanism (Art.6.4) Inputs from constituted bodies • Framework for non-market • Adaptation committee (AC) approaches (Art.6.8) • Least Developed Countries Expert Group (LEG) • Modalities for accounting for • Standing Committee on Finance (SCF) public finance (Art.9.7) • Executive Committee of the Warsaw International • Advice from IPCC (completed in Mechanism for Loss and Damage (WIM Excom) 5 2016) • Response measures (SBSTA&SBI)

Article 6 in context conditional accounting parts of for the NDC NDCs Art 6.2 Art 6.8 Role Art 6.4 of non- accounting mechanism for ITMOs markets in in the used for implementi context of NDCs ng NDCs NDCs information to be facilitative reported compliance and its review 6

Article 6 progress report 7

Article 6: state of play  SBSTA Chair draft Article note – released in mid March  One for Article 6.2, one for 6.4 and one for 6.8  SB48 discussed the texts and produced new iterations  Discussion will continue in Bangkok, issues will likely have to be prioritised  Next milestones:  Agree on ‘negotiating text’ in Bangkok  Adopt rulebook in Katowice 8

Article 6 informal notes Article 6.2 - ITMOs Article 6.4 – Emission Mitigation Mech Metric Scope of the mechanism Form Scope of activities Scope Baselines Participation requirements Additionality Origination of ITMOs Overall mitigation Accounting method Governance and issuance Non-NDC uses of ITMOs Transition and relation with existing mechanism Corresponding adjustments: application, frequency and reporting Share of proceeds Treatment of single year targets Eligibility requirement Governance Appeals process Infrastructure Pre-2020 action Pre-2020 action Restrictions 9 Restrictions

Key issues under discussion - Article 6.2  How can we ensure that the scope of the guidance in relation to environmental integrity is sufficient? (Flexibility / Scalability /future proof)  Reach of the guidance (lifecycle of an ITMO or just transfer and acquisition) and the implications for environmental integrity.  Oversight functions  Which accounting approaches are most suitable, and why? (budget, emission, buffer registry, emission reductions).  How is mitigation outside the scope of the NDC covered by the guidance?  Share or proceeds and Overall Mitigation of Global Emissions being in 6.2? 10

Key issues under discussion- Article 6.4  Scope - Crediting under the mechanism inside and/or outside NDC, does it include only emission reductions or include avoidance/removals ?  Governance model (centralisation vs decentralization)  Linkage with 6.2 accounting (what is accounted under the mechanism?)  How to establish additionality and/or baselines in the context of the NDC?  How to implement an overall mitigation of global emissions?  How to avoid use of mitigation outcomes from 6.4 activities by more than one Party?  Transition of the rules/projects/credits under the Kyoto Protocol, or nothing? 11

Way Forward  All options are still on the table – and will stay there until Katowice  SB48 will resume in Bangkok – need to prioritise elements  Next few months are crucial for good outcome at COP24 12

Thank you! 13

IETA position on Article 6.2  Measured in tCO2e  Based on emission accounts  Tracking net flows of MOs over time  CAs at issuance and use, with regular reporting  MOs deriving from NDC quantification, national policies and Art6.4  Originated from quantified portions of NDC, but with transition period 14

IETA position on Article 6.4  Operates within NDCs, but with transition period  Could quantify and bring new sectors into NDCs  Use to quantify NDC sectors, mitigation activities  Full quantification of NDCs and CAs reduce additionality concerns  Robust baselines are needed  Governed by a Supervisory Body 15

Article 4 ➢ Differentiation: o Leading role of developed countries; ➢ Communication o Submit a new or update Nationally Determined Contribution (NDC) Every 5yrs • The cycle starting year 2020 • Successive NDCs o Long term low GHG development strategies ➢ Accounting of NDCs o provides the general principles of promoting environmental integrity, transparency, accuracy, completeness, comparability and consistency, and ensuring the avoidance of double counting (Art 4.13) 16

Article 13 Transparency framework to be established, inter alia o Mitigation effort (13.7) o Climate impacts and adaptation (13.8) o Financial, tech transfer and capacity building support (developed countries, 13.9) o Needs and support received (developing countries, 13.10) o Multilateral consideration of progress on finance (13. 11) 17

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