Download Supporting NDC Implementation Through Market and Non

Supporting NDC Implementation
Through Market and Non-Market
Based Approaches: Carbon Pricing,
and More
Noim Uddin, PhD
6 September 2016
Asia Pacific Carbon Forum, Jeju Island, Republic of Korea
Carbon pricing mechanism – scientific basis
• Effective adaptation and mitigation responses will depend on
policies and measures across multiple scales: international,
regional, national and sub-national. Policies across all scales
supporting technology development, diffusion and transfer, as
well as finance for responses to climate change, can complement
and enhance the effectiveness of policies that directly promote
adaptation and mitigation
Source: Section SPM 4.4 page 29, Summary for Policy Maker, Synthesis Report, Climate Change 2014, IPCC
• Mechanisms that set a carbon price, including cap and trade
systems and carbon taxes, can achieve mitigation in a costeffective way but have been implemented with diverse effects
due in part to national circumstances as well as policy design.
Source: Section SPM 4.4 page 30, Summary for Policy Maker, Synthesis Report, Climate Change 2014, IPCC
Market, Non-Market and Mechanism in the Paris
Agreement
• Not using ‘market’ in the Paris Agreement texts instead contain
‘mechanism’ in the Paris Agreement texts
• While no mention of ‘market’ in the Paris Agreement texts,
reference is given on ‘non-market’ (appeared 5 times in the
Paris Agreement and its decision texts)
• Article 6.4 contains a guidance towards designing a mechanism
• Cooperative Approaches (Article 6.2) and Non-market
approaches (Article 6.8) require further thinking on design,
requirements and elements
Article 6 of the Paris Agreement – early concerns
• Paris Agreement appears to include a mix of top-down and bottom-up
regimes
• Article 6.2: Cooperative Approaches (internationally transferred mitigation
outcomes) – country driven or countries driven or market driven?
Opportunity for regional cooperation? Effort based or result-based?
Accounting and MRV?
• Article 6.4: Mechanism – governance (centralized or decentralized or
country driven), possibility to adopt positive experience from existing
mechanism or mechanism currently being developed.
• Article 6.8: Non-market approaches – defining non-market (non resultbased?); facilitating co-benefit approaches; increase the effectiveness of
policies in meeting multiple objectives and strengthen the political will to act.
• Where does CDM best fit?
Thank you
CPMA
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