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

3

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

 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

The Rulebook

5

Paris Agreement Work Programme:

• verview
• NDC registry (Art 4.12)
• Adaptation registry (Art 7.12)
• Scope/modalities for technology

mechanism assessment

• Common timeframes (Art.4.10)
• Enhancing education, training,

public awareness, participation and access to information (Art 12)

• Identification of the information to

be provided by Parties in accordance with Art.9.5

• Response measures (SBSTA&SBI)
• Technology Framework (Art.10.4)
• Cooperative approaches (Art. 6.2)
• Rules, modalities, procedures for

the mechanism (Art.6.4)

• Framework for non-market

approaches (Art.6.8)

• Modalities for accounting for

public finance (Art.9.7)

• Advice from IPCC (completed in

2016)

• Response measures (SBSTA&SBI)
• Further guidance for

mitigation section of 1/CP21

• Adaptation comms
• Transparency
• Global stocktake
• Implementation /

compliance

• Adaptation Fund
• Possible additional

measures Inputs from constituted bodies

• Adaptation committee (AC)
• Least Developed Countries Expert Group (LEG)
• Standing Committee on Finance (SCF)
• Executive Committee of the Warsaw International

Mechanism for Loss and Damage (WIM Excom) Inputs from COP

• Institutional

arrangements on capacity-building

Article 6 in context

6

information to be reported and its review accounting for the NDC Art 6.2 accounting for ITMOs used for NDCs Art 6.8 Role

• f non-

markets in implementi ng NDCs facilitative compliance Art 6.4 mechanism in the context of NDCs conditional parts of NDCs

7

Article 6 progress report

 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: state of play

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 Restrictions

9

Article 6 informal notes

 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 6.2

 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

• ne Party?

 Transition of the rules/projects/credits under the Kyoto Protocol, or nothing?

11

Key issues under discussion- Article 6.4

 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

• utcome at COP24

12

Way Forward

Thank you!

13

 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

IETA position on Article 6.2

14

 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

IETA position on Article 6.4

15

➢ Differentiation:

• Leading role of developed countries;

➢ Communication

• Submit a new or update Nationally Determined Contribution

(NDC) Every 5yrs

• The cycle starting year 2020
• Successive NDCs
• Long term low GHG development strategies

➢ Accounting of NDCs

• 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 4

Transparency framework to be established, inter alia

• Mitigation effort (13.7)
• Climate impacts and adaptation (13.8)
• Financial, tech transfer and capacity building support (developed

countries, 13.9)

• Needs and support received (developing countries, 13.10)
• Multilateral consideration of progress on finance (13. 11)

17

Article 13

18