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REDD crediting vs. REDD funds : how avoided deforestation under the UNFCCC should be financed
(2010)
While the Paris Agreement (PA) has enshrined ambitious long-term objectives, the current actions of the Parties to the Agreement fall far short of these goals. The Global Stocktake (GST), established in Art. 14 of the PA, may help narrow this gap between ambition and action: its purpose is to review the implementation of the PA and to assess the collective progress of the international community towards Paris goals. While some general modalities on how to conduct the GST have been adopted, the details are still to be determined.
The objective of this report is to analyze existing international regimes as regards their review processes, the contribution of these review processes to various governance functions and, finally, to derive lessons for the GST. Processes analyzed include:
the design of the upcoming Global Stocktake itself,
the Talanoa Dialogue (TD) which is the direct precursor of the GST,
the Agenda 2030 High-Level Political Forum (HLPF), which features a regular stocktaking process focused on progress toward the Sustainable Development Goals (SDGs),
the review processes of the UN human rights system (UNHRS) and
the review processes and assessment panels of the Montreal Protocol (MP).
The analysis of each review process is organised in four section: (1) political background and context, (2) technical and organisational details of the processes, (3) interface between the political and technical processes, and (4) how the review processes contribute to achieving the objectives of the respective regime, particularly governance functions of the regime (guidance and signal, transparency and accountability, and knowledge and learning).
The new mechanism defined under Article 6.4 of the Paris Agreement is supposed to allow for international cooperation with regard to climate change mitigation and thereby enable an increase in overall mitigation. Nevertheless, the design of the mechanism under Article 6.4 should also make sure that it is not be in conflict with the long-term goal of net-zero GHG emissions but even better foster national pathways leading to this objective. Building this into the mechanism requires to shift the focus from short- and mid-term considerations to the long-term perspective in one way or another.
This discussion paper explores three different approaches that may help to foster the long-term objective of net-zero GHG emissions in the operationalization of Article 6.4, namely positive and negative lists, additionality with regard to a baseline consistent with both, NDCs and long-term targets, as well as adaptation of existing instruments and criteria from climate finance. The detailed discussion of the ap-proaches shows that the approaches should not be seen as mutually exclusive but rather as comple-mentary to each other. From the analyses, two storylines emerge how to combine aspects of the differ-ent approaches in a reasonable way to foster the long-term objective of net-zero GHG emissions under Article 6.4.
Taking public transport by bus in the Chinese Metropolis Hefei as an example, the report analyses the practicability of standardised baselines as possible instruments for climate protection funding. The development of standardised baselines for the transport sector has been pushed since the nineties in order to better assess emission reductions of CDM projects. Further aims of standardising are a clinical comparison and a precise forecasting. For all projects of a defined sector, class, size or a given geographical origin it is possible to develop standardised baselines in the sense of reference value for emissions. The report was produced in the context of the initiative "Partnership on Sustainable Low Carbon Transport" (SLoCaT), commissioned by the Asian Development Bank. It complements the study "Applicability of Post 2012 Climate Instruments to the Transport Sector (SITS)", that analyses the impacts of climate protection funding mechanisms like the Clean Development Mechanism (CDM) in the transport sector of metropolises in emerging nations and gives recommendations for the further development of financing mechanisms.