Technical Workshop 9: Different Market-Based Approaches & Implications for a Future Carbon Market (Chile)

Photo credit: Alobos Life; Source: Creative Commons
This workshop provided an opportunity to examine different market based mechanism being planned, designed, and implemented, and to discuss how a future integrated global carbon market could emerge from these mechanisms.
Nov 06, 2014
Santiago, Chile
November 6, 2014
1. Opening and Introduction
Moderator: Erik Haites, Margaree Consultants Inc
Xueman Wang, PMR Secretariat
2. Emerging Carbon Markets: Different Approaches Adopted by Countries
This session provided an overview of the different types of market-based mechanisms that are being designed, planned, and implemented. It also provided an opportunity to discuss implications for a future global carbon market. What does it mean for market-based approaches to be credible, consistent, and compatible? How does this relate to the activities of PMR countries today in planning and designing market-based instruments? And what does this imply for a future global carbon market?
Pauline Kennedy, PMR Secretariat
    Emerging Carbon Markets: Different Approaches Adopted by Countries
10:30 Break
3. Examining Key Technical Elements – Insights from Current Approaches
The session considered three key technical elements of market-based approaches: i) MRV; ii) Governance, Legislation, and Institutions; and iii) Accounting. Participants discussed design characteristics, systems, and procedures that make market mechanisms credible, consistent, and compatible. It was also an opportunity to identify emerging common or good practice, and opportunities for international cooperation.

Monitoring, Reporting, and Verification (MRV) of Emissions and ERs
This session focused on MRV systems. What are the principles and design characteristics of a ‘credible’ MRV system? What is common or good practice? And is this common across different types of mechanisms? When and why is it necessary or desirable for MRV systems to be consistent and compatible? How can countries build consistent and compatible MRV systems and what does this mean in practice?
Erik Haites, Margaree Consultants Inc
MRV of Emissions and ERs
Governance, Legislation, and Institutions
This session focused on governance, legislation, and institutional arrangements. What are the design characteristics of ‘credible’ governance and institutional arrangements for market mechanisms? Is there any common or good practice?
Felix Mathes, Öko-Institute
Comparison of Different Governance and Institutional Arrangements
Michael Gibbs, Air Resources Board, California
Governance, Legislation, and Institutional Arrangements: the Case of California and Québec
12:30 Lunch
This session focused on accounting systems.What gets counted and how? What are the characteristics of a ‘credible’ accounting approach? How to account for cross-border trade between one or more market mechanisms? Is it necessary to have a consistent and compatible accounting system and what does this mean in practice?
Michael Lazarus, Stockholm Environment Institute
Issues in Accounting
Amy Steen, UNFCCC Secretariat
Latest Developments under the UNFCC, including on the Framwork for Various Approaches
15:00 Break
4. Implications of Different Market-Based Approaches for an Integrated Carbon Market in the Future
Countries are planning and implementing different market-based approaches. It is not yet clear if, and if so, how these different mechanisms might form an integrated global carbon market in the future. Presenters explored how an integrated global carbon market might emerge, to draw lessons from the experience to date, and consider how this might inform countries’ current activities in preparing and designing market-based approaches.
Andrei Marcu, Centre for European Policy Studies
Evolution of the Global Carbon Market
Bianca Sylvester, World Bank
Enhancing the Bottom-up Development of Climate Mitigation Efforts
5. Concluding remarks
Xueman Wang, PMR Secretariat
17:15 Wrap up
End of workshop