brainstorming session on the future of … future of pmr.pdf · fi#eenth mee*ng of the partnership...

Fi#eenthMee*ngofthePartnershipAssemblyHanoi,Vietnam18-20October2016

BRAINSTORMINGSESSIONONTHEFUTUREOFTHE

PARTNERSHIPFORMARKETREADINESS

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I.   PMRinContext:ProgramObjecAvesandHighlights

II.   ChangingCircumstancesforPMRAcAviAes

A.  ExternalEnvironment:Post-ParisMomentum

B.  InternalEnvironment:InsightsfromPMRImplementa=on

III.   BuildingonAchievementsandLessonsLearned:ADiscussionontheFutureofthePMR

IV.  NextStepsandTimeline

Outline

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I.   PMRinContext:ProgramObjecAvesandHighlights

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u  Launchedin2010(CancunCOP10);opera*onalizedin2011

u  Establishedagainstthebackdropofadownturnintheinterna*onalcarbonmarket

ContextforSeMngUpthePMR

Objec1ves:•  Providegrantfundingtobuildreadinesscomponentsthatsupporttheimplementa*on

of carbon pricing instruments—including market-based approaches—for GHGmi*ga*on;

•  Pilotcarbonpricing instruments,e.g.,domes*cETS, scaled-upcredi*ngmechanisms,orcarbontaxes;

•  ProvideaplaNorm fordiscussions,networking, and collecAve innovaAonon carbonpricinginstruments—inpar*cularnewmarket-basedapproaches—forGHGmi*ga*on;

•  Create and disseminate a body of knowledge on carbon pricing instruments, inpar*cular market-based approaches that could be tapped for country-specificrequirements;

•  Share insights and lessons learnedwith the interna*onal community, including theUNFCCC.

PMROverview:WhereDoWeStand?

QuickFacts§  Capitaliza*on:$127million§  $59millionallocatedtoprepareforPMRini*a*ves

§  19countryprograms§  13donorsand4technicalpartners

AreasofWork§  Threeworkprograms:1. PolicyAnalysisWorkProgram2. TechnicalWorkProgram3. CountryProgram

§  Carbonpricinginstruments:ü  Emissionstradingü  Carbontaxa*onü  Credi*ngandoffse^ngü  Others

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PA7(Oct2013):Firstround

discussionsonstrategic

direc*onofPMR

PA7-PA14(Oct2013-Apr2016):

Severaldocuments,proposals&ac*ons

putforwardtofacilitatediscussions

PA14(Apr2016):Endorsementof

processtoallocateaddi*onalfunding&expandPartnership

EarlyEffortstoMaximizePMRImpacts:AnOverview

FocusareasofthePMR’sStrategicDirec1on:1.  Deepenreadinesssupport2.  Broadenreadinesssupport3.  Supportpilo=ngofscaled-upcredi=ng

programs4.  PrepareforadiscussiononPMRPhaseII

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CountryPrograms TechnicalWorkProgram

PolicyAnalysisWorkProgram CountryExchanges

PMR

EarlyEffortstoMaximizePMRImpacts:DeepeningSupport

EffortstodeepenthePMRinresponsetolessonslearnedandchangingcondiAons:1.  SupplementMRPac=vi=eswithin-countrydialogues2.  Ramp-uptheTechnicalWorkProgram:

•  Detailednotesonseveralcoretechnicalcomponentsandincreasednumberofdedicatedtechnicalworkshops

3.  DeploythePolicyAnalysisWorkProgram:•  ChecklistandsupportforINDCprepara=onin5countries•  Ongoingsupportin10countries•  Developprogram-levelsupportonmodelingandpolicyinterac=on

4.  Facilitatedialoguesrespondingtoevolvingsub-regionalcollabora=ononcarbonpricing5.  Dialogueonpost-2020carbonmarketsandrecentassessmentoftheimplica=onsofthe

ParisAgreementforthePMR

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18ImplemenAngCountryParAcipants 13ContribuAngParAcipants

4TechnicalPartners Partnerships,ObserverCountries,andOrganizaAons

PMR

EarlyEffortstoMaximizePMRImpacts:BroadeningSupport

EffortstobroadenthePMR:1.  Increasedcontribu=onsfromCPstoallowthepar=cipa=onoftwoaddi=onalcountries•  PeruandTunisia

2.  Endorsedprocedureforaccep=ngnewcountriesbytheendof2016•  SriLankaandArgen=natojointhePMRbyPA15

3.  Introducednewpar=cipantcategory:“PMRTechnicalPartners”•  Kazakhstan,California,QuébecandAlberta

4.  Developedstrategicpartnershipsthroughimplementa=onofjointac=vi=es•  IETA,ICAP,Interna=onalMRVPartnership,WRI,UNDPLECB,LEDSGlobal

Partnership,etc.

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II.  ChangingCircumstancesforPMROperaAons

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u  Long-termvisiontolimittheglobalaveragetemperaturetowellbelow2°Cabovepre-industriallevels,withtheaimoflimi*ngitto1.5°C

u  Reinforcebobom-upapproaches:countriesagreetoregularlyreviewandrevisetheirNDCs,toincreaseambi*onover*me

u  Countriesarele#withachoiceofpoliciesandacAonstodesignandimplementinordertoachievetheirmi*ga*ongoalsandcontributetocollec*vetargets

ExternalEnvironment:ImplicaAonsoftheParisAgreementonthePMR(1)

Countriesareaccelera1ngdomes1cclimateac1oninordertoachieveNDCsbutimplementa1oncapacity

remainsachallengeinmanycountries.

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u  RecogniAonofvoluntarycooperaAveapproaches(Art.6):§  Anewinterna*onalmechanismforcountriestocontributetoGHG

emissionsmi*ga*onandsustainabledevelopment§  Provisionstopavethewayforboeom-upcoopera*veapproacheswhere

Par*escouldopttomeettheirclimatepledgesusingITMOs

u  Carbonpricingandcarbonmarketscanhaveapivotalroletoplayinachievingcountries’mid-andlong-termmi*ga*onandotherpolicygoals

ExternalEnvironment:ImplicaAonsoftheParisAgreementonthePMR(2)

Thedemandforfinancingandtechnicalassistancerelatedtocarbonpricingwillincrease.ThiscreatesanopportunitytoleveragethePMR’stechnicalknowledgebaseandtofurtherfacilitateandenhancetheuse

ofinnova1vecarbonpricinginstruments.

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u  Decisionsontheuseofdomes*candinterna*onalcarbonpricinginstrumentsarepartofalengthyandsensi*vepoli*calprocess

u  Manycountriesareyettomakeafinaldecisiononthecarbonpricinginstrument(s)theywilltopursue

u  Technicalandins*tu*onalreadiness,aswellasintra-ins*tu*onalcoordina*onandstakeholderengagement,arekeyformakingviablepolicychoices,aswellasfortheirfuturedesignandimplementa*on

Con1nueexploringwaystoenhancetechnicalandfinancialsupporttocountriesiscri1cal.

InternalEnvironment:MakingPolicyChoices

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u  Technical,regulatoryandinsAtuAonalreadinessfortheuseofcarbonpricinginstrumentsisaconAnuumofseveralphases:

InternalEnvironment:UnderstandingReadiness

Upstream:Policyanalysis&dialoguetofacilitatechoice

ofinstrument(s) Midstream:Design&prepareinstrument(s)

Downstream:Implementinstrument(s),&reviewand

improveoverAme

Dependingontheirlevelofreadiness,countriesneeddifferen1atedsupport.

u  ThePMRcarriesoutgroundworkatpolicyandtechnicallevelsto:

§  Facilitatecountries’decisionsaboutcarbonpricinginstruments

§  Supportsdesignandimplementa*ononcethedecisionismade

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•  Implica*onsofAr*cle6oftheParisAgreement

•  Roleofcredi*nginthepolicypackagestoachieveNDCobjec*vesandotherpolicygoals

Ra1onale&PolicyObjec1vesofScaled-up

Credi1ng

•  Developinginnova*vetechnicalandins*tu*onalelements

• ManagingtherisksofachievingNDCobjec*ves

•  Demonstra*ngthroughimplementa*on

Design&Implementa1on:DealingwithUncertainty

•  Ensuringbroaderapplicabilitytootherpolicyinstrumentsandfundingapproaches

•  Buildingpoli*calmomentumandabroadstakeholders’acceptanceforcarbonpricings

MinimizingRegrets&MaximizingBenefits

InternalEnvironment:TakinganOverarchingApproachtoSupportScaled-upCrediAng

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u  ThereisbroadrecogniAonthat:§  Carbonpricinginstrumentsshouldbeconsideredinthe

contextofcountries’long-termmi*ga*ongoals(asoutlinedintheirNDCs)andotherpolicyobjec*ves

§  Countriesusemodelingandanaly*calworktoiden*fyasuitablepackageofpoliciesandmeasures,andunderstandtheirinterac*ons,impactsandpoten*albarriers

InternalEnvironment:TakingaHolisAcApproachtoProvidePolicySupport

Providingsystema1candlong-termsupporttocountriestohelpstrengthenmodelingcapacityisessen1al.

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u  ThePMRisauniqueplaNormthat:§  Convenesmajoreconomiesandfacilitatespolicyandtechnical

dialoguesatdomes*candinterna*onallevels§  Supportsdiversecountryac*onontheground§  GeneratesandsharesknowledgebeyondthePMR§  Providesanenvironmentforcountriestoopenlydiscuss

challengesandopportuni*esfacedduringthechoice,design,prepara*on,andimplementa*onofcarbonpricinginstruments

InternalEnvironment:ValueofPartnership

Maintaininganac1veanddynamicplaTormtoleveragepoli1calmomentumandsharevaluableknowledgeontechnicalandpolicy

challengesisvital.

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ReaffirmingtheRaAonaleforthePMR

TheParisAgreement..

…createsanenvironment

conducivetotheuseofdomesAccarbonpricinginstruments

aspartofNDCimplementaAon...

...andpavesthewaytowardan

internaAonalcarbonmarketajer2020.

ThePMRexperience..

...showsthatsupportforreadinessiscriAcalforthe

successfulchoice,design,preparaAon,andimplementaAonofcarbonpricinginstruments,and…

...confirmsincreasingdemandfortechnical

assistanceandservices,includinginthecontextofNDCimplementaAon.

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III.   BuildingontheAchievementsandLessonsLearned:ADiscussionontheFutureofthePMR

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u AllocaAonofremainingfunds(PhaseI,unAl2020)§  “Deepening”PMRsupport(i.e.,alloca*onofaddi*onalfundingto

exis*ngImplemen*ngCountryPar*cipantsandTechnicalPartners)§  “Broadening”thePartnership(i.e.,acceptanceofnew

Implemen*ngCountryPar*cipantsandTechnicalPartners)

u  PossibleextensionoftheTF(PhaseII,beyond2020)§  Discussiononmission,objec*vesandscopeof“PMRPhaseII”

StrategicDirecAonofthePMR:AnOverview

Short-termFuture Long-termFuture

2020

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PMRPhaseII:PossibleScopeofAcAviAesGoingForward

u  Rampupfinancialandtechnicalassistance:focusonsupportforfullspectrumofcarbonpricingpolicies,includingNDCimplementaAon§  Upstream:

-  Definepolicyobjec*vesandra*onaleforcarbonpricing-  Policyanalysis(modelingandpolicyinterac*on)tofacilitatethechoiceofinstrument(s)

andunderstandroleinachievingNDCobjec*ves-  Definegovernancerequirements,andfacilitatestakeholderengagementandinter-

ins*tu*onaldialogue

§  Midstream:-  Designandpreparecarbonpricinginstruments(i.e.,establishcoretechnicalelements,

ins*tu*onsandregula*ons)

§  Downstream:-  Implement,reviewandimprovecarbonpricinginstruments

u  StrengthenplaNormfuncAon,withincreasedin-countryandregionaldisseminaAonofknowledgeandexperience

u  Deepentechnicalknowledgeandincreaseabilitytoprovidein-countrysupport(includingadvisoryservicesonsupporAngpolicyreformprocesses/managingpoliAcaleconomy)

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PossibleScenariostoDeepenSupportGoingForward

PossiblefuturescenariostodeepenPMRsupport:1.  InterestinamoredetailedTechnicalWorkProgram,withincreasedinternal

capacityforin-countrysupportandworkshops(advisoryservices)2.  Increasedandmoresystema=csupportforNDCimplementa=oncyclethrough

PolicyAnalysisWorkProgram(analy1cs)3.  Ac=vefacilita=onofregionaldialoguesandcommonworkoncarbonpricing

(towardslinking)4.  Increasedinterestinupstreamsupport,tohelpdefinepolicyobjec=vesandthe

ra=onaleforcarbonpricing5.  Furtherintegra=onofthePolicyAnalysisandTechnicalWorkPrograms

CountryPrograms TechnicalWorkProgram

PolicyAnalysisWorkProgram CountryExchanges

PMRPhaseII

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PossibleScenariostoFurtherBroadenthePMR

PossiblefuturescenariostobroadenthePMR:

1.  IncreaseddemandandinterestinthePMRfromotherdevelopingcountriesandemergingeconomies

2.  Increasedinterestinflexiblemodali=esforsupport,whichcouldresultinfurtherdifferen=a=onofpar=cipantcategories

3.  Augmenteddissemina=onofPMR’sknowledgeproducts,includingtonon-PMRpar=cipants

ImplemenAngCountryParAcipants ContribuAngParAcipants

TechnicalPartners Partnerships,ObserverCountriesandOrganizaAons

PMRPhaseII

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I.   RaAonaleforExtendingthePMR

u  DoestheParisAgreementreaffirmtherelevanceofthePMRinapost-2020regime?

u  Whatarepoten*alimpactsintermsofafutureworkplan(e.g.,ac*vi*esthatfacilitatebothdomes*ccarbonpricinginstrumentsandpar*cipa*oninthefutureinterna*onalmarket)?

u  HowdoestheexperiencefromthefirstphaseofthePMRinformitsfuturedirec*on?

u  WhatisthePMR’saddedvaluecomparedtootherexis*ngandemergingini*a*ves,andhowcaneffec*vecoordina*onandsynergiesamongthembeensured?

DiscussionontheFutureofthePMR(1)

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II.   RedefiningMissionandObjecAves

u  ShouldthePMR’smissionandobjec*vesberedefinedtoreflectrecentinterna*onalanddomes*cdevelopments?Ifso,how?

u  AretheregapsinthePMR’smissionandobjec*ves?Ifso,whichones?

u  HowexplicitshouldbethelinktoNDCimplementa*ongoingforward?

u  HowcanthePMRmaximizeitsimpactandfurthercatalyzetransforma*onalchange?

u  Howcouldthefunc*onofthePMRasaplapormfortheexchangeofknowledgeandexperiencebefurtherstrengthened?


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III.   ProposedScopeofWorku  DoesthePMR’sscopeofworkneedtoaddressthe“post-Paris”agenda?If

so,how?Whatac*vi*esshouldbecon*nued,droppedoradded?

u  HowcanthePMRprovidesupportthataccommodatesincreasinglydifferentneedsfromcountries,forupstream,mid-streamanddownstreamac*vi*es?

u  Whatwillbetheappropriatebalancebetweenthesupportprovidedto“readiness”and“implementa*on”ac*vi*esgoingforward?


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IV.  OpAonsforBroadeningPMR

u  ShouldthePMRseekthepar*cipa*onofnewImplemen*ngCountries?

u  Shoulddifferentcategoriesofpar*cipantsbecreatedtoaccommodateincreasinglydiverseneedsfromcountries?

u  Howcouldthedissemina*onofPMR’sknowledgeproducts,includingtonon-PMRmembers,beincreased?

u Whichaddi*onalpartnership(s),ifany,shouldbepursuedandwhy?

PMRPhaseII:QuesAonsforDiscussion(4)

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IV.  NextStepsandTimeline

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u  PA15(Oct2016):BrainstormingonthefutureofthePMR(relevance-mission-objec*ves-scope-reach)

u  Intersessionalperiod(Oct2016-Mar2017):FeedbackfromPMRPar*cipants

u  PA16(Apr2017):Dra#NoteonthefutureofthePMR(includingproposalonGovernanceFramework)

u  Intersessionalperiod(Apr2017-Sep2017):FeedbackfromPMRPar*cipantsontheDra#Note

u  PA17(Oct2017):FinalNoteonthefutureofthePMR

u  Nov2017-Apr2018:Poten*alrevisionstothePMRDesignDocumentandGovernanceFramework

u  May2018-Dec2018:Administra*veAgreementswithContribu*ngPar*cipants

u  Dec2018(COP24):StartofPMRPhaseII

ProposedNextStepsandTimeline

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FORMOREINFORMATIONON

THEPARTNERSHIPFORMARKETREADINESS(PMR),PLEASECONTACT:

[email protected]

WWW.THEPMR.ORG

brainstorming session on the future of … future of pmr.pdf · fi#eenth mee*ng of the partnership...

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