Technical Workshop 19: Implications of the Paris Agreement for a New Generation of International Market Mechanisms (Paris)

May 31 - Jun 02, 2016
Paris, France
Day 1: May 31, 2016
8:30 Registration
Venkata Ramana Putti, World Bank
1. Paris and Bonn Debrief: Current Interpretations and Implications for Crediting Mechanisms
Paris delivered a new UNFCCC-governed crediting mechanism, applicable both in developing and developed countries (mechanism for mitigation and sustainable development, SDM). Paris also recognized cooperative voluntary approaches (CVAs) that enable international transfer of mitigation outcomes to be accountable against countries’ mitigation pledges (in the form of nationally determined contributions (NDCs)). Following from the recent Bonn Climate Change Conference what are the current interpretations for scope and operationalisation of the CVA and SDM? Three expert presentations were followed by a panel discussion.
Moderator: Chandra Shekhar Sinha, World Bank
Massamba Thioye, UNFCCC
UNFCCC: Interpretations and Implications for Crediting Mechanisms
Andrew Howard, Koru Climate
Paris and Bonn Debrief
Andrei Marcu, International Centre for Trade and Sustainable Development
Informal Dialogue on Implementation of Article 6 in the Paris Agreement
10:15 Break
Moderator: Chandra Shekhar Sinha, World Bank
Thomas Forth, Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, Germany
Monica Echegoyen, Secretariat of Environment and Natural Resources, Mexico
El Hadji Mbaye Diagne, Senegal
Marion Verles, Gold Standard
Benoit Leguet, I4CE
12:00 Lunch
2. Exploring Different Scopes of Scaled-up Crediting: Design and Implementation Perspective
The Paris Agreement established high-level features of the new generation of crediting. While detailed modalities and procedures are yet to be defined, the current text seems to allow substantial flexibility for countries in terms of the scope of implementation and design of crediting activities. In this session, participants examined how could new mechanisms be designed to support targeted mitigation policies and options as well as how different will these be from Kyoto mechanisms.

The requirements set in the Article 6 were also discussed, including regulations, global mitigation, transparency, avoiding double counting, as well as methodological approaches and financing. The discussion was structured around ongoing or planned activities in host countries.

Session i: Crediting at the sectoral level: How could the new mechanism(s) be designed to support sectoral mitigation? What do we know about baseline setting for sectoral crediting in the context of NDCs?

Session ii: Crediting to support subnational actions: How could the new mechanisms support cities and national governments to achieve urban mitigation at scale?
13:15 Chair: Randall Spalding-Fecher, Carbon Limits
Huy Luong Quang, Ministry of Environment and Natural Resources, Vietnam
Vietnam: Introduction to Sectoral Baseline Setting in the Context of NDC
Harikumar Gadde, World Bank
Sri Lanka: Piloting Scaled-up Crediting in Power Sector
M.B.S. Samarasekara, Ceylon Electricty Borad, Sri Lanka
Sri Lanka: Power Generation - Renewable Energy Prospective
Ulrika Raab, Energy Agency, Sweden
Sweden: Developed Country’s Perspective on Sectoral Crediting - Overall Context and Crediting Ambition
Chair: Jorge Wolpert, Secretariat of Agrarian Development & Urban Planning, Mexico
Alexandrina Platonova-Oquab, World Bank
Opportunities of New Generation of Crediting for Cities
Puttipar Rotkittikhun, Greenhouse Gas Management Organization, Thailand
Thailand: Exploring Opportunities to Use International Crediting to Support Scaled-up Urban Mitigation Action
Miguel Rescalvo, Networked Carbon Markets
Assessment of City Programs for Fungibility in International Markets
Agnes Biscaglia, Agence Française de Développement
France: Development Agency Perspective on Urban Mitigation
15:45 Break
Chair: Klaus Oppermann, World Bank
Chebet Maikut, Ministry of Water and Environment, Uganda
Uganda: RBCF and Feed-in Tariffs for Renewables
Frédéric Gagnon-Lebrun, International Institute for Sustainable Development
Supporting Carbon Pricing Policies through Crediting and RBCF
Grzegorz Peszko, World Bank
Quantifying Expected Results of Policy Reforms
17:30 Wrap up
End of Day 1
Day 2: June 1, 2016
Klaus Oppermann, World Bank
3. Financing Options to Implement Scaled-up Crediting pre- and post-2020
In this session, the first presenter discussed financing sources that countries may want to mobilize to support piloting and implementing of scaled-up crediting programs and to clarify current expectations from buyers and sellers of credits. Then, a panel discussion followed and it focused on opportunities to diversify financing options (e.g., targeting both carbon markets and RBCF) and ways to mobilize domestic financing resources to bridge the demand gap, including attracting private investment, and considering the expected contribution of crediting to the implementation of (i)NDCs. Finally, two host countries shared their perspectives.
Moderator: Jane Wilkinson, Climate Policy Initiative
Pedro Barata, GET2C
Assessing Sources of Demand: International and National Perspective
Marco Berg, Switzerland
Klaus Oppermann, World Bank
Malin Ahlberg, Germany
Leo Hyoungkun Park, Green Climate Fund
Jan-Willem van der Ven, European Bank for Reconstruction and Development
Integrated Carbon Programmes
10:45 Break
Silvia Charpentier, Ministry of Environment & Energy, Costa Rica
Costa Rica: Assessing Climate Finance Options for Transformation
Sebastian Carranza, Ministry of Environment & Sustainable Development, Colombia
Colombia: Exploring Domestic Sources of Financing

12:00 Lunch
4. Ensuring Environmental Integrity and Transparency of Crediting: Policy and Methodology Agenda
Presenters and panelists explored critical tools for ensuring environmental integrity and transparency under the SDM, CVA, and RBCF mechanisms. Questions included:
- How to take into account a new policy context where all the Parties have announced their (i)NDCs in setting expectations and designing scaled-up crediting programs?
- How to account for the mitigation value of programs under the SDM and CVA to ensure global mitigation?
- How to set-up the reporting systems to avoid double counting?
- How and where could the existing crediting infrastructure and systems support new market mechanisms?
Chair: Andrei Marcu, International Centre for Trade and Sustainable Development
Derik Broekhoff, Stockholm Environment Institute
Environmental Integrity, Baselines, and Policy Uncertainty: Charting a Path Forward
Axel Michaelowa, Perspectives
Environmental Integrity of Crediting Policies
Ulrika Raab, Energey Agency, Sweden
Felicity Spors, World Bank
Felipe de Leon, PMR Costa Rica Readiness Program
Abdelrhani Boucham, Ministry of Environment, Morocco
15:00 Break
5. Bridging the Transition from a Kyoto to Paris Framework for Crediting
This session built upon the previous sessions and aimed to suggest priorities for the methodology and policy work program on scaled-up crediting. The discussion will help to ensure that the policy and methodology work cover critical issues and that the outcomes of the work are reaching relevant stakeholders and are well communicated to policy makers. The aim of the methodology and policy work program is to effectively contribute to shaping the future mechanisms and approaches, in particular through piloting.
Chair: Pedro Barata, GET2C
Alexandrina Platonova-Oquab, World Bank
Karan Mangotra, TERI
Thomas Forth, Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, Germany
Sandra Greiner, Climate Focus
Klaus Oppermann, World Bank
17:30 Wrap up
End of Workshop

This workshop focused on the current interpretations of the Paris Agreement relative to the scaled-up crediting and its implications for the ongoing and future capacity building and piloting initiatives. The workshop provided timely contribution to the discussions on how the framework of the Paris Agreement should be shaped to build over time a robust basis for the international cooperation using market-based instruments. 

The workshop was followed by the Dialogue on Exploring role for Results-Based Climate Finance to Deliver Transformative Low Carbon and Climate Resilient Development. This Results Based Climate Finance (RBCF) Dialogue provided an opportunity to discuss the rationale, the scope of application of RBCF, and potential role of RBCF to price the carbon and to build carbon markets. The presentations from this Dialogue are available below in the category "Other".

Meeting Documents