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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.
A sectoral perspective can help the Global Stocktake (GST) to effectively achieve its objective to inform Parties' in enhancing subsequent NDCs and in enhancing international cooperation. Specifically, granular and actionable sectoral lessons, grounded in country-driven assessments, should be identified and elaborated. To be effective, conversations on sectoral transformations need to synthesise key challenges and opportunities identified in the national analyses and link them to international enablers; focus on systemic interdependencies, involve diverse actors, and be thoroughly prepared including by pre-scoping points of convergences and divergence across transformations. We specifically recommend that:
the co-facilitators of the Technical Dialogue use their (limited) mandate to facilitate an effective conversationon sectoral transformations e.g. by organising dedicated informal seminars in between formal negotiation sessions;
key systemic transformations necessary toachieve net-zero by mid-century should be spelled out and included in the final decision or political declaration of the GST; and
the political outcome of the GST should mandate follow-up processes at the regional level and encourage national-level conversations to translate the collective messages from GST into actionable and sector-specific policy recommendations.
What can reasonably be expected from the UNFCCC process and the climate conference in Paris 2015? To achieve transformative change, prevailing unsustainable routines embedded in socio-economic systems have to be translated into new and sustainable ones. This article conceptualizes the UNFCCC and the associated policy processes as a catalyst for this translation by applying a structurational regime model. This model provides an analytical distinction of rules (norms and shared meaning) and resources (economic resources as well as authoritative and allocative power) and allows us to conceptualize agency on various levels, including beyond nation states. The analysis concludes that the UNFCCC's narrow focus on emission targets, which essentially is a focus on resources, has proven ineffective. In addition, the static division of industrialized and developing countries in the Convention's annexes and the consensus-based decision-making rules have impeded ambitious climate protection. The article concludes that the UNFCCC is much better equipped to provide rules for climate protection activities and should consciously expand this feature to improve its impact.
There is general agreement that preventing dangerous climate change requires a fundamental transformation of the global economy. Regarding carbon markets, the EU, for example, has called for the new market-based mechanism (NMM) to be established under the UNFCCC to "facilitate transition towards low carbon economy and attract further international investment". This JIKO Policy Paper discusses the transformative potential of the NMM and how it should be structured to maximize transformative impact.
The analysis shows that details in the arrangements of the scheme, such as allocation of allowances can significantly influence the incentive structure of the instrument and hence its potential to contribute to transformational change. The authors conclude that carbon pricing is necessary but is by itself not sufficient to redeem the various types of market failures that have led to the unsustainable global socio-economic system we are deemed to change. An NMM should therefore be tailored to complement other national policies.
Limiting global warming to below 2 °C or even 1.5 °C requires a fundamental transformation of global socio-economic systems. This need for transformation has been taken up by international climate policy. This article synthesizes criteria of transformational change from transition research and climate finance agencies. On this basis, the article conducts a multi-criteria evaluation of the transformative potential of the European Union Emissions Trading Scheme (EU ETS), currently the world's largest market-based climate policy. From this case it can be inferred that emissions trading can "destabilize" incumbent high-emission practices, but its effectiveness in fostering innovation is limited. Furthermore, the analysis shows that details in the arrangements of the scheme such as allocation rules can have a strong detrimental impact on its outcome. If a global carbon market with a uniform price were introduced, this could lead to developing countries "buying in" with large amounts of freely allocated allowances. This, however, has been shown to thwart transformational effects and instead contribute to further carbon lock-in.
This policy paper reviews the concept of additionality in the context of the Paris Agreement. Additionality is a key criterion that helps to maintain the environmental integrity of the Paris Agreement, especially when units created under Article 6.2 or 6.4 are used for offsetting purposes whether that is by Parties in order to meet their NDCs or whether by other entities with legal mitigation obligations.
It does so by first reviewing key concepts such as offsetting, environmental integrity, and baseline. Subsequently, it explores the context of additionality under the Paris Agreement. More specifically it discusses what should be counted as the baseline for additionality demonstration. The subsequent chapter then highlights the challenges with establishing additionality, that is establishing a causal relationship between a policy intervention and a proposed activity. Finally, the Policy Paper discusses aspects of international governance with respect to additionality.
Die internationale Klimapolitik tritt in ein neues Zeitalter unter teils widersprüchlichen Vorzeichen ein: Während das US-Wahlergebnis auf erschwerte Rahmenbedingungen für die Bekämpfung des Klimawandels hindeutet, konnten auf der UN-Ebene bei der COP22 in Marrakech einige Fortschritte erzielt werden. Lukas Hermwille und Wolfgang Obergassel zeigen die verschiedenen Szenarien auf, die sich damit für eine ambitionierte internationale Klimapolitik ergeben.
On 8 November 2016, Donald Trump was elected to become the 45th President of the United States of America. In his campaign, he repeatedly expressed his intention to "cancel the Paris Agreement". How can the course set with the adoption of the Paris Agreement be continued independently of the developments in the US? The authors sketch possible consequences of the sea change of US climate policy for the international negotiation process and identify options for a "Trump-resilient" way forward.
Better integration of climate action and sustainable development can help enhance the ambition of the next nationally determined contributions, as well as implementation of the Sustainable Development Goals. Governments should use this year as an opportunity to emphasize the links between climate and sustainable development.