Enhancing Country Work with Technical Support
The Technical Work Program complements the readiness activities Participants have identified in the Building Block exercise by providing support in a programmatic manner on those elements that are common across countries. Its objectives are to facilitate experience and knowledge sharing; develop practical guidance on common issues; identify good practice and common standards; and to help build necessary capacity. Click here to read the current TWP work plan.
Knowledge Products and Exchanges
Drawing on country experience, global industry experts, and in-house resources, the Technical Work Program produces a number of knowledge products and exchanges on specific topics. Topics for these activities are driven by country need, as identified in MRPs or requested by Participants.
Scope of Activities: Current Work Program
Building “readiness” means identifying and filling capacity gaps so that countries can design and pilot carbon pricing instruments to achieve mitigation. The Technical Work Program supports this process. It focuses on three thematic work streams: emissions trading systems, carbon taxes, and offset and crediting instruments (both scaled-up and project-based offset instruments). And it complements this with a range of cross-cutting work streams on different technical components that support carbon pricing.
Thematic Work Streams
Emissions Trading Systems (ETS)
An emissions trading scheme (ETS) is a tool that uses market forces to identify least-cost options for GHG emissions reduction. The ETS work stream focuses on the design and implementation of cap and trade systems. It was established because a number of Implementing Country Participants are interested in establishing an ETS to achieve emissions reduction goals.
A carbon tax is levied on GHG emissions where emitters will pay a tax on their emissions output. The carbon tax work stream focuses on the design and implementation of carbon taxes. It was established reflecting the interests of some Participants in pursuing carbon taxes as a way to achieve emission reduction goals.
Offsets and Crediting
Many PMR Participants are pursuing some form of crediting instrument, whether it is an offset program to complement an ETS, carbon tax, or other domestic policy; or a scaled-up crediting instrument to be the primary vehicle to provide incentives for emission reductions. The offsets and crediting work stream focuses on the design and implementation of these crediting instruments.
Technical Components Work Streams
Monitoring, Reporting and Verification (MRV)
National systems to monitor, report and verify emissions reductions are an important cornerstone for any mitigation tool, including those that price carbon. Such systems provide guidelines to entities responsible for reporting emissions and provide credible mechanisms for data management and data validation. The MRV work stream develops common guidance on the design and implementation of MRV systems to support carbon pricing. Most PMR Implementing Country Participants identify MRV among their readiness activities within the MRP. Several will develop and implement entity-level GHG reporting programs as part of their PMR work.
Data Management and Registries
The Data Management and Registries work stream provides guidance on the development of GHG data management platforms for corporate/facility-level reporting, mandatory reporting programs, and transaction registry and management.
In collaboration with other organizations and experts, the Technical Work Program provides guidance on Greenhouse Gas baseline setting with a focus on mitigation action at different levels (national, regional, sectoral, or facility-level).
Benchmarks are a new area of work for the TWP. To date benchmark studies have focused on specific countries.
Stakeholder Engagement and Preparedness
PMR Participants are increasingly engaging with a range of local and international stakeholders on carbon pricing, in particular in view to prepare and implement their MRP activities. The Secretariat also seeks out opportunities to engage stakeholders, in particular the private sector.
The Technical Work Program has undertaken a number of other relevant activities:
Some components of the Technical Work Program are supported by working groups comprising nominated representatives from PMR Participants, the PMR Secretariat, observers, and experts. Working groups provide guidance on work plans, inputs to workshops, and feedback on knowledge products and other deliverables. Current working groups cover the following topics:
- Emissions Trading
- Carbon Taxes
- Offsets and Crediting