South-South Exchange: Developing Domestic Offset Schemes (March 2014)

The Secretariat, with support from the government of UK, hosted a south-south exchange on the development of domestic offset systems. The workshop featured key developments in offset systems and plans for such systems, and provided a platform for discussion and knowledge exchange.
Mar 02, 2014
Mexico City, Mexico
March 2, 2014
8:30 Registration
1. Opening
Moderator: Luis Muñozcano
Xueman Wang, PMR Secretariat
2. Domestic Offset Programs Close Up
Building on experiences with the CDM, some developing countries are designing their own domestic offset schemes. Different drivers spur these schemes: some programs are being developed to build and maintain a foundation for a domestic carbon market; others are developed to manage the costs of a carbon pricing instrument implemented as either a national ETS or carbon tax. The design of these programs reflects countries’ national circumstances and the interplay of the offset program with other elements of national climate policy. In this segment, representatives from emerging offset programs presented the rational, objectives, status, short- and medium-term direction, and challenges facing the development of their programs.
Wang Shu, National Development and Reform Commission, China
China: Domestic Offset Scheme
Felipe De León, Programa Acción Clima Dirección de Cambio Climático, Colombia
Costa Rica: The Carbon Market (MCCR)
Brieanne Aguila, Air Resources Board, California
California: Compliance Offset Program
Francis Beland-Plante, Ministry for Sustainable Development, Québec
Québec: Offset System
11:30 Break
Soffía Alarcón Díaz, Ministry of Environment and Natural Resources, Mexico
Mexico: Towards a Climate Market
Mkhuthazi Steleki, Department of Environmental Affairs, South Africa
South Africa: Broad Overview on Domestic Offset Potential
12:45 Lunch
3. Review of International Experience in Establishing Offset Program
Felicity Spors, PMR Secretariat
Summary of Feedback to Define the PMR Offset Working Group Scope of Work
Randal Spalding-Fecher,
International Experience with Offset Programmes: Options for Discussion
4. Offset Program Specifics in Relation to the 3C Principles of Credibility, Consistency, and Compatibility
In general, all offset programs seek to adhere to the principles of environmental integrity and economic efficiency. Different options exist for offset program design in terms of governance structure, program scope, the GHG calculation standards applied, and project cycles (i.e., MRV, validation, and verification procedures and stakeholder participation). These options have an impact on the operationalization of the principles of environmental integrity and economic efficiency. Participants discussed their understanding of the 3C principles in groups. Questions included:

 How can countries build on the offset experience and capacity gained from the CDM, JI, and VER markets within their specific national contexts?
 Which elements of the “existing offset regimes governance structures” can be applied in order to develop cost effective and efficient processes (e.g., registry, certification agency, tracking tools, and enforcement measures) for national offset programs that also live up to the 3C principles?
 How can the established standards and methodologies be tailored to national circumstances (i.e., sectors, data availability, and cost considerations) without compromising the 3C principles?
Break-out Group Discussion
16:00 Break
Feedback from Break-out Groups
5. Prioritizing Common Issues in Domestic Offset Design
Round Table Discussion to identify the top issues that need to be addressed when developing offset programs
17:45 Wrap up
End of event