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Design options for the new international market mechanism under article 6.4 of the Paris agreement
(2020)
In this project commissioned by the German Environment Agency, important aspects of the mechanism under Article 6.4 of the Paris Agreement were examined in more detail. This mechanism is to succeed the CDM under the Kyoto Protocol from 2021 onwards, but it will contain decisive improvements, especially with regard to a robust accounting of emission reductions and better integration into the national climate policy of the host country. The report is addressed to the international experts, in particular to the delegates to the climate conference and observers, and is therefore written in English. A German summary is included. The following topics are covered:
How does the mechanism achieve an overall reduction of global emissions?
Are there opportunities to use benchmarks to establish baselines?
Can contributions to increasing ambition be made by using Art. 6.4?
What contribution can the voluntary market make to increasing ambition in the future?
Introduction of incentives for the participation of private companies under Art. 6.4 of the PA.
The role of the Art. 6.4 mechanism on the way to a net zero emission world.
The project provides a contribution to the general discussion in the EU as well as to the Article 6 - Negotiations under the UNFCCC. It is a contribution that presents backgrounds and interrelationships for individual questions concerning the design of the new market mechanisms under Article 6 and can thus contribute to a more informed decision-making process.Since there are, however, several different ways of designing a mechanism that can avoid double counting and provide incentives for increasing ambition, this project is only one of several current contributions to the international discussion.
Much of the current literature on climate clubs sees mitigation costs creating free rider incentives as the main problem of climate policy. Climate clubs are supposed to solve this problem by creating additional incentives for mitigation. Looking more in detail, one sees that the situation differs from sector to sector. Some industry sectors indeed have substantial cost and competitiveness issues. In others such as electricity and transport, there are costs at micro level but balance for economy and society as a whole is rather positive. International climate policy in general and clubs in particular should therefore be tailored to sectoral specifics.
How can existing national climate policy instruments contribute to ETS development? : Final report
(2019)
Before introducing an emissions trading system, jurisdictions have to consider the ex-isting energy and climate policy framework. This report seeks to analyse and evaluate non-ETS climate policy instruments, such as carbon taxes or green certificate trading schemes, regarding their suitability to serve as a basis for establishing emission trading systems. There is a general assessment of prototypical policy instruments. Besides, the report contains insights from case studies in India and Mexico. The report is meant to inform ETS development by showing how existing policy instruments could contribute to this process and by illustrating how non-ETS policy instruments could coexist with an emissions trading system, allowing for an effective policy mix.
The study analyses the country background, emissions trends, ongoing activities and barriers relating to the implementation of the Nationally Determined Contribution (NDC) of Ethiopia under the UNFCCC. A special emphasis is laid on further mitigation potentials in the fields of agriculture, forestry and low-emission transport.
From 7 to 18 November 2016, the twenty-second Conference of the Parties (COP22) to the United Nations Framework Convention on Climate Change (UNFCCC) took place in Marrakech. Due to the early entry into force of the Paris Agreement, Marrakech also hosted the first Conference of the Parties serving as Meeting of the Parties to the Paris Agreement (CMA1). Researchers from the Wuppertal Institute observed the conference and elaborated a detailed analysis of the results. The report starts by discussing developments regarding the implementation of the Paris Agreement, in particular the detailed "rulebook" and cooperative mechanisms. Next, the article discusses developments in the various avenues for raising climate ambition that have been put in place by the Paris conference: the 2018 facilitative dialogue, the engagement of non-state and sub-national actors, and the elaboration of mid-century climate strategies. In addition, the article discusses other Marrakech developments, in particular on issues of climate finance and adaptation, as well as recent developments in the wider world that have an impact on the UNFCCC, in particular developing alliances, developments in the International Civil Aviation Organisation (ICAO) and under the Montreal Protocol, and possible repercussions of the US presidential election.
Based on a description of the starting position and the aim of the research project "Further development of a concept for monitoring and reporting of the International Climate Initiative (ICI)", this final report summarises the results generated in this endeavour. It also describes the key activities which were conducted to work out the results. In two years time, the project aimed to develop a scientifically sound and at the same time practical monitoring and reporting concept which should deliver information about the impacts of the ICI. It started from an initial analysis of the current ICI approach and of the monitoring and reporting approaches applied in other climate finance instruments.
This report analyses the international climate negotiations at the UN climate conference in Durban in December 2011. The conference revolved around two key sets of issues: What will be the overarching long-term framework of international climate policy and what near-term action will be taken to combat climate change? Accordingly, the first part of the report is devoted to the negotiations and outcome on the legal form of the future climate regime while the second part discusses near-term action along the "building blocks" of the Bali Action Plan.