Paris Agreement’s Article 6 Update

Stefano De Clara

Director for International Policy, IETA

July 24, 2018

The Paris Agreement: An Overview

• Article 2: Long-term goal

• Article 4: NDCs

• Article 6: Cooperative Approaches

• Article 8: Loss and Damage

• Article 10: Tech-transfer

• Article 13: Transparency

• Article 15: Implementation

• Article 3: Progressing effort

• Article 5: REDD+

• Article 7: Adaptation

• Article 9: Finance

• Article 11: Capacity Building

• Article 14: Global Stock-Take

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Article 6 is a new market policy framework

Key provisions

• 6.2, 6.3: Internationally transferred mitigation outcomes with robust accounting to avoid double counting (ITMO)

• 6.4: New emissions mitigation mechanism to support sustainable development (EMM)

• 6.8: Non-market approaches of cooperation

Guidance on features of NDCs;

Guidance for the information to be provided by parties in order to facilitate clarity, transparency and understanding of NDCs;

Guidance for accounting for parties’ NDCs;

Guidance on avoiding double counting

Guidance on cooperative approaches,

Rules, modalities and procedures of Sustainable Development Mechanism

Work programme under the framework for non-market approaches to sustainable development;

Modalities and procedures for the operation and use of a public registry;

Guidance on adaptation communication, including as a component of NDCs;

Modalities for the accounting of financial resources;

Elaboration of the technology framework;

Develop modalities for the global stocktake

Response measures

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The Rulebook

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Paris Agreement Work Programme: overview

• NDC registry (Art 4.12)• Adaptation registry (Art 7.12)• Scope/modalities for technology

mechanism assessment• Common timeframes (Art.4.10)• Enhancing education, training,

public awareness, participation and access to information (Art 12)

• Identification of the information to be provided by Parties in accordance with Art.9.5

• Response measures (SBSTA&SBI)

• Technology Framework (Art.10.4)• Cooperative approaches (Art. 6.2)• Rules, modalities, procedures for

the mechanism (Art.6.4)• Framework for non-market

approaches (Art.6.8)• Modalities for accounting for

public finance (Art.9.7)• Advice from IPCC (completed in

2016)• Response measures (SBSTA&SBI)

• Further guidance for mitigation section of 1/CP21

• Adaptation comms• Transparency• Global stocktake• Implementation /

compliance• Adaptation Fund• Possible additional

measures

Inputs from constituted bodies• Adaptation committee (AC)• Least Developed Countries Expert Group (LEG)• Standing Committee on Finance (SCF)• Executive Committee of the Warsaw International

Mechanism for Loss and Damage (WIM Excom)

Inputs from COP• Institutional

arrangements on capacity-building

Article 6 in context

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information to be

reported and its review

accounting for the NDC

Art 6.2 accounting for ITMOs used for

NDCs

Art 6.8 Role of non-

markets in implementi

ng NDCs

facilitative compliance

Art 6.4 mechanism

in the context of

NDCs

conditional parts of

NDCs

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Article 6 progress report

SBSTA Chair draft Article note – released in mid March

One for Article 6.2, one for 6.4 and one for 6.8

SB48 discussed the texts and produced new iterations

Discussion will continue in Bangkok, issues will likely have to be prioritised

Next milestones:

Agree on ‘negotiating text’ in Bangkok

Adopt rulebook in Katowice

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Article 6: state of play

Article 6.2 - ITMOs Article 6.4 – Emission Mitigation Mech

Metric Scope of the mechanism

Form Scope of activities

Scope Baselines

Participation requirements Additionality

Origination of ITMOs Overall mitigation

Accounting method Governance and issuance

Non-NDC uses of ITMOsTransition and relation with existing mechanism

Corresponding adjustments: application, frequency and reporting

Share of proceeds

Treatment of single year targets Eligibility requirement

Governance Appeals process

Infrastructure Pre-2020 action

Pre-2020 action Restrictions

Restrictions

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Article 6 informal notes

How can we ensure that the scope of the guidance in relation to environmental integrity is sufficient? (Flexibility / Scalability /future proof)

Reach of the guidance (lifecycle of an ITMO or just transfer and acquisition) and the implications for environmental integrity.

Oversight functions

Which accounting approaches are most suitable, and why? (budget, emission, buffer registry, emission reductions).

How is mitigation outside the scope of the NDC covered by the guidance?

Share or proceeds and Overall Mitigation of Global Emissions being in 6.2?

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Key issues under discussion - Article 6.2

Scope - Crediting under the mechanism inside and/or outside NDC, does it include only emission reductions or include avoidance/removals ?

Governance model (centralisation vs decentralization)

Linkage with 6.2 accounting (what is accounted under the mechanism?)

How to establish additionality and/or baselines in the context of the NDC?

How to implement an overall mitigation of global emissions?

How to avoid use of mitigation outcomes from 6.4 activities by more than one Party?

Transition of the rules/projects/credits under the Kyoto Protocol, or nothing?

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Key issues under discussion- Article 6.4

All options are still on the table – and will stay there until Katowice

SB48 will resume in Bangkok – need to prioritise elements

Next few months are crucial for good outcome at COP24

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Way Forward

Thank you!

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Measured in tCO2e

Based on emission accounts

Tracking net flows of MOs over time

CAs at issuance and use, with regular reporting

MOs deriving from NDC quantification, national policies and Art6.4

Originated from quantified portions of NDC, but with transition period

IETA position on Article 6.2

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Operates within NDCs, but with transition period

Could quantify and bring new sectors into NDCs

Use to quantify NDC sectors, mitigation activities

Full quantification of NDCs and CAs reduce additionality concerns

Robust baselines are needed

Governed by a Supervisory Body

IETA position on Article 6.4

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➢ Differentiation:

o Leading role of developed countries;

➢ Communication

o Submit a new or update Nationally Determined Contribution (NDC) Every 5yrs

• The cycle starting year 2020

• Successive NDCs

o Long term low GHG development strategies

➢ Accounting of NDCs

o provides the general principles of promoting environmental integrity, transparency, accuracy, completeness, comparability and consistency, and ensuring the avoidance of double counting (Art 4.13)

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Article 4

Transparency framework to be established, inter alia

o Mitigation effort (13.7)

o Climate impacts and adaptation (13.8)

o Financial, tech transfer and capacity building support (developed countries, 13.9)

o Needs and support received (developing countries, 13.10)

o Multilateral consideration of progress on finance (13. 11)

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Article 13

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