Article 6 of the Paris Agreement - Status of negotiations - May 2018 Managing CDM Projects - A Capacity Development Workshop Manila, Philippines ...
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Article 6 of the Paris Agreement
Status of negotiations - May 2018
Managing CDM Projects - A Capacity Development Workshop
Manila, Philippines, 15 May 2018
Jens Radschinski, Head of the RCC Bangkok
UNFCCC - Regional Collaboration Center, Bangkok
Markets and non-markets in the Paris Agreement
• Aim of the Paris Agreement
§ Hold increase in global temperature to well below 2
°C and aim to limit to 1.5 °C
§ Article 6 is a voluntary set of tools to support
implementation to allow for higher ambition in NDCs
• Ambition in NDCs
§ NDCs should reflect highest possible ambition
(based on circumstances)
§ Markets and non-markets should support, not
undermine, that ambition
• Progression of NDCs over time
§ New NDCs should show progression
§ Markets should not undermine that
Article 6 – co-operation towards NDCs
Cooperative Approaches
Articles 6.2 and 6.3 and decision 1/CP.21 paragraph 36
The Mechanism
Articles 6.4 to 6.7 and decision 1/CP.21 paragraphs 37 and 38
Framework for non-market approaches
Articles 6.8 and 6.9 and decision 1/CP.21 paragraphs 39 and 40Article 6 sits in a puzzle with other items
conditional
accounting
parts of
for the NDC
NDCs
6.4 role of non-
accounting for
mechanism markets in
ITMOs used
in the context implementing
for NDCs
of NDCs NDCs
information to facilitative global
be reported compliance
and its review stocktakeThe bigger picture around Article 6 discussions
• A practical implementation challenge for NDCs. Many
Parties need help to achieve their NDCs:
§ Technical support (e.g. understand their own GHG
emissions profiles)
§ Financial support (e.g. implement conditional parts of
NDCs)
• Parties are working through a Paris Agreement work
programme, defined in decision 1/CP.21, in which:
§ There are many issues, linkages among them and a
mandate to deliver all at the same time
§ Negotiations need to reflect an overall dynamic of
political balanceWhat are the Parties doing to implement Article 6?
• Article 6 work programmes started in May 2016 to
implement three parts of the Article
§ Article 6.2 - Cooperative approaches – Guidance
§ Article 6.4 - Mechanism – Rules, modalities and
procedures
§ Article 6.8 - Framework for non-market approaches –
Decision on the work programme
• Parties had the first meeting in Marrakech in Nov 2016,
and agreed to forward the Paris Agreement Work
Programme (PAWP) for adoption in Dec 2018
• Parties continued work in May 2017, Nov 2017 and May
2018Outcome of May 2018 negotiations • Prior to session (March), informal document containing draft elements of text for outcome were published • These were worked on by Parties during the session to improve them • The draft elements do not represent a consensus or reflect all the views of Parties • Documents will be used for next negotiations, to be held in September 2018 in Bangkok
Progress report
Next steps – to end 2018
• SBSTA 48. 2 (September 2018, Bangkok)
§ Continue negotiations
• SBSTA 49 (December 2018, Katowice)
§ Continue negotiations to finalise draft text and isolate remaining
political issues
• CMA 1.5 (December 2018)
§ Meeting of Parties to Paris Agreement (CMA) to adopt
§ Guidance for cooperative approaches (6.2)
§ Rules, modalities and procedure for the mechanism (6.4)
§ Decision on the work programme under the framework for
non-market approaches (6.8)Key issues – Cooperative approaches (6.2) • How can we ensure that the scope of the guidance is sufficient to ensure environmental integrity while being sufficiently flexible to be usable in evolving economic conditions • What should be the reach of the guidance (lifecycle of an ITMO or just transfer and acquisition) and what are the implications for environmental integrity? • What should be the oversight functions for cooperative approaches ? • Which accounting approaches are most suitable, and why? (budget based, emissions based, buffer registry based, emission reductions based) • How should mitigation outside the scope of the NDC be covered by the guidance, if at all? • How should Share or proceeds and Overall Mitigation in Global Emissions being dealt with in 6.2, if at all?
Article 6.4 - The Mechanism (I)
Ø The mechanism is established under the authority and guidance of
the CMA and will be supervised by a body appointed by the CMA
(i.e. will have international oversight)
Ø The aims of the mechanism are to:
o Promote mitigation while fostering sustainable development
o Incentivize and facilitate participation by authorized public and
private entities
o Contribute to emission reductions in the host Party that can be
used by another Party to fulfil its NDC (but if so used, cannot
also be used by the host Party for its NDC achievement)
o Deliver an overall mitigation in global emissions
11Article 6.4 - The Mechanism (II)
Ø Emission reductions from the mechanism are to:
o Be additional, real, measurable and long term from specific
scopes of activities (not limited to projects and programmes)
o Verified and certified by designated operational entities
Ø Share of proceeds & adaptation SOP
Ø The mechanism is global in reach and all Parties can both host
activities and use emission reductions to achieve NDCs
Ø The mechanism is not limited to emission reductions that will be
used for the achievement of NDCs (either of the host or another
Party) only but can be used for other purposes, such as MRV of
climate finance
12Key issues - The mechanism (6.4) • What should be the scope of activities that may be credited under the mechanism – only activities inside the NDC, or also outside? Only emission reductions or include avoidance/removals? • How central is the oversight within the mechanism? Do national authorities have a big role to play? • How should additionality and/or baselines be set, given the context of the NDC? • How should overall mitigation in global emissions be implemented? • How should we avoid double use of emission reductions – use by more than one Party • Which parts of the Kyoto mechanisms can be absorbed into the Mechanism?
Key issues - Framework for non-market approaches • What are non-market approaches? • What actions under the work programme would facilitate the implementation and coordination of non-market approaches and enhance linkages and create synergy? • What should be the organizational arrangements for the framework (e.g. committee, forum, task force, agenda item)? • How should the work programme/framework facilitate non-market approaches in a way that adds real value at implementation level?
Pathways to COP 24 (Dec 2018)
• Article 6 is part of the Paris Agreement work programme
– follows the same pathway
• “Landing zones” are becoming clearer, but real
negotiation and compromise are required
§ Opportunities for all interested Parties to (voluntarily)
participate in Article 6
§ Offer flexibility but also ensure environmental integrity
§ Avoid perverse incentives that undermine ambition
and progressionUNFCCC Regional Collaboration Centres (RCCs)
Ø RCC Bangkok is a collaboration
between the UNFCCC Secretariat
and IGES
Ø The fifth RCC globally, launched
in September, 2015
Ø Hosted by IGES Regional Office Launch
event,
in Bangkok, Thailand Sep 2 0
15
Ø Set up to spread the benefits of the CDM, to help under-
represented regions increase their attractiveness and potential
for CDM, by building their capacity and reducing the risk for
investors.
Ø Broader role since Paris - supporting development and
implementation of countries’ NDCs to climate action under that
agreement;
16Thank you!
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