Study on approaches to incorporation of mitigation contributions in international market mechanisms, including through development standards for setting emissions reference levels
Final report - Study
The Paris Agreement marks a new overall framework for international action on climate change. This new framework differs from that of the Kyoto Protocol, in that participation in mitigation efforts in the regime is expected and encouraged from all parties - developed and developing – albeit in a broader variety of forms; in Kyoto, only a subset of developed countries (Annex B) had formal mitigation commitments. The new regime differs also in regard to the lack of a formal enforcement mechanism. Countries are expected to submit and implement 'nationally determined contributions' (NDCs) and the... need to support developing countries in their implementation is recognized, but no country will be subject to any formal sanction for non-achievement. Instead, stress is put on a facilitative compliance mechanism and on the role of a cyclical stocktaking, a peer pressure exercise in building momentum, and pressuring countries to achieve their goals and increase ambition. Mitigation effort accounting frameworks are essential for clarification and understanding of the NDCs, their reporting and understanding so as to facilitate trust and ensure the success of the future climate regime. In order to track progress accurately, despite their diversity, contributions must be clear, include reporting obligations and rules to interpret the information reported and compare them with contributions pledged. The further elaboration of the accounting framework of the Paris Agreement should lead to an output that is as simple as possible while maintaining accuracy and environmental integrity. This regime crucially relies on the transparency of parties’ with regard to their commitments to achieve their pledged contributions, as only transparent information on countries’ contributions can lead to the mutually reinforcing confidence between parties that the regime is built on. Transparency therefore requires both knowledge of the impact of the NDCs on emissions (ergo the emphasis on national inventories as the key tool to monitor progress) but also of flexibility mechanisms used to achieve the NDCs. Given the diversity of contribution types, several problems arise, which we address in this paper: a) How can a Paris accounting framework allow for the diversity of contributions as expressed in the intended NDCs, while both supporting and promoting ambition, rather than undermining it; b) Within that regime, how should the framework account for the additional flexibility that comes from access to mechanisms in working towards NDCs and prevent undermining the ambition in the NDCs themselves?
- Corporate author(s): adelphi , Directorate-General for Climate Action (European Commission) , Get2C
- Personal author(s): Kachi, Aki; Martins Barata, Pedro Themes: Environment policy and protection of the environment
- Subject: accounting, climate change policy, emission allowance, emission trading, environmental cooperation, EU environmental policy, report