Stand der Entwicklung der internationalen Marktmechanismen Wie weiter mit CDM & Co? Die flexiblen Mechanismen nach Kyoto Bundestagsfraktion Bündnis 90/Die Grünen, Berlin, 03/07/2014 Dr. Martin Cames
Existing market mechanisms Mechanism Kyoto Protokoll Type Unit Coverage Reference Seller Promoter International Emissions Trading (IET) Article 17 Cap & Trade (C&T) Assigned Amount Unit (AAU) Country Annex I Joint Implementation (JI) Article 6 Baseline & Credit (B&C) Emission Reduction Unit (ERU) Project Baseline Annex I Clean Development Mechanism (CDM) Article 12 Baseline & Credit (B&C) Certified Emission Reduction (CER) Project (& BL) non-annex I 2
CDM performance so far Positive Learning by doing: standards & procedures have improved over time More than 1.46 billion CER issued to be used for offsetting GHG emissions in Annex I More than 7,500 registered projects have spread the knowledge about options of GHG mitigation worldwide and contributed to raise awareness for climate change Negative Non-additional CER (HFC-23, N2O, etc.) remain in the system and have significantly undermined the credibility Environmental integrity of some project types can still be put into question (super critical coal, large hydro, etc.) Some rules have proven inappropriate Length of crediting periods Lack of PoA methodologies 3
Genesis of new market mechanisms Avoid carbon leakage Scaling up:, sectors & mitigation activities Facilitate increasing ambition (of developed ) 2007 Bali Action Plan I.b (v): Various [mitigation] approaches, including opportunities for using markets Increase environmental integrity Allow for own contribution of developing Balance between market & non-market approaches 4
New market mechanisms Mechanism Kyoto Protokoll Type Unit Coverage Reference Seller Promoter New Market Mechanism (NMM) C&T or B&C Sector(s) EU EIG AILAC Framework for Various Approaches (FVA) Domestic trading policies Sector(s) & developed UG (USA, JPN, NZL, etc.) Non-market-based Approaches (NMA) Mitigation outcomes Non Sector(s) ALBA (BOL, VEN, ec.) 5
Existing & new market mechanisms Mechanism Kyoto Protokoll Type Unit Coverage Reference Seller Promoter International Emissions Trading (IET) Article 17 Cap & Trade (C&T) Assigned Amount Unit (AAU) Country Annex I Joint Implementation (JI) Article 6 Baseline & Credit (B&C) Emission Reduction Unit (ERU) Project Baseline Annex I Clean Development Mechanism (CDM) Article 12 Baseline & Credit (B&C) Certified Emission Reduction (CER) Project (& BL) non-annex I New Market Mechanism (NMM) C&T or B&C Sector(s) EU EIG AILAC Framework for Various Approaches (FVA) Domestic trading policies Sector(s) & developed UG (USA, JPN, NZL, etc.) Non-market-based Approaches (NMA) Mitigation outcomes Non Sector(s) ALBA (BOL, VEN, ec.) 6
Current situation SBSTA (technical advice) FVA NMA NMM SBI (implementation) Review of the CDM: little progress Review of JI: relatively advanced ADP (negotiations on the Paris agreement) Mentioning of markets in co-chairs note Stating ADP relevance in SBSTA conclusions on FVA/NMA/NMM 7
Challenges Ensure environmental integrity Avoid double counting Avoiding continuation of the firewall (Annex I/non-Annex I) Level of international coordination of rules? International scrutiny of quality & ambition? Spectrum of commitments (notified in CO 2 e or not) Accommodate request for non-market approaches Reflecting linking of domestic carbon market approaches (ETS) under UNFCCCC 8
Outlook CDM review: net-mitigation? Import to the Paris agreement? Little progress on market mechanisms pre Paris (2015) Only a hook for using international carbon markets post 2020 Accounting route based Targets notified in CO2e Mechanisms route Baseline based (project, sector, policy) Own contribution, in line with nationally determined commitment Development of modalities & procedures only after Paris 9
Thank you for your attention! Dr. Martin Cames Head Energy & Climate (Berlin) Öko-Institut e.v. Schickler Str. 5-7 10179 Berlin Telephone: +49 30 40 50 85-383 e-mail: m.cames@oeko.de 10