Embed Size (px)
Citation preview
Are countries ready for Article 6? Preliminary results from case study research
Bonn, 12th May 2017
Workshop, Bonn Climate Change Conference, May 2017
Julia Melnikova, Sean Healy, Ritika Tewari
Extensive past experience: Joint Implementation (JI) and Green Investment Scheme (GIS)
Industrial energy efficiency, energy distribution, and fugitive emissions as key areas for JI
Positive (raised awareness, infrastructure) as well as negative (insufficient control mechanisms and intransparency) experience from both JI and GIS
Ukraine: Country Context
2 01/08/2017
Source: National Inventory Report Ukraine, 2016
Source: own, based on UNEP JI Pipeline, 2017
JI Projects by Country and Track
Emissions by sector, Ukraine, 2014
Domestic market-based instruments
National emissions trading system (ETS)
planned in line with obligations under UA-
EU Association Agreement of 2014
Roadmap for ETS implementation
developed
Partnership for Market Readiness (PMR)
supports the development of a monitoring,
reporting and verification (MRV) scheme
Domestic administration and regulatory capacity – LIMITED?
Institutional gap after dissolution of State Environmental Investment Agency (SEIA)
Work concentrated within Ministry for Ecology and Natural Resources (MENR), a new coordinating body would bring many benefits, but its potential establishment is confronted with a number of barriers (legal, political, financial)
Absence of such a body sometimes tends to lead to a lack of institutional coordination
Accounting capacity – SUFFICIENT?
Well-established process for the preparation of the national GHG inventory, annual reporting
Participation in international market mechanisms twice temporarily suspended because of quality of reporting under UNFCCC, but Ukraine regained credibility
MRV capacity – LIMITED, IMPOVING?
Current extensive work, i.a. under PMR: Development of MRV legislation, MRV database, monitoring plan, emissions report, trainings for operators, planned MRV pilots, etc.
Stationary sources already report on emissions, but this data tends to be of relatively low quality
Ukraine: Domestic Capacity
3 01/08/2017
Strategic long-term vision of the
importance of climate policy
would be key
• Nationally Determined Contribution (NDC)
“Ukraine will participate actively in the development of existing international market mechanisms and implementation of new ones”
Unconditional pledge not to exceed 60% of 1990 GHG emissions in 2030 including LULUCF
• SBSTA Submissions
Submissions on guidance on cooperative approaches referred to in Art. 6, para. 2; on rules, modalities and procedures for the mechanism established by Art. 6, para. 4 (2016):
• Common metric for outcomes: “…shall be quantifiable and measurable in Metric Tons of CO2e of already achieved or future mitigation of GHG”
• Integral approach for operationalisation of Article 6.2, 6.4 and 6.8 provisions is key (creating environment for finance flows to combat climate change)
Ukraine: Interest in Markets
4 01/08/2017
Ukraine has more interest in cooperation under Article 6.2 but could also
envisage participation in Article 6.4 (interview insight)
Ukraine: Interest in Markets
5 01/08/2017
Source: Ukraine,
SBSTA Submission,
April 2017
• Proposed Article 6 Decisions’ package covering five Decisions
Domestic Capacities
Domestic administration and regulatory capacity
Accounting capacity
Monitoring, reporting and verification (MRV)
Overall political will
Ukraine: Summary and Options
6 01/08/2017
Interest in Markets
Clearly expressed in NDC, SBSTA Submissions, interviews
Tendency towards Article 6.2, but also potential for Article 6.4
* Image designed by Freepik from Flaticon
*
Article 6.2
• ITMO transfers through linked domestic ETSs
• ITMO transfers through (bilateral) baseline and crediting on project-by-project or sectoral level
• Direct government-to-government ITMO transfers
Article 6.4
• A project or programme based mechanism, similar to the CDM/JI approaches
• A sectoral international crediting mechanism, i.e. fixed sectoral baselines or quantifying GHG-friendly policies or intensity based baselines
Vietnam overview
7 01/08/2017
Carbon market activity
• 255 registered CDM projects generating 16,526 kCERs
Source: CDM Pipeline (2017)
• 4 registered projects under the Joint Crediting Mechanism
Source: https://www.jcm.go.jp/vn-jp/projects/registers
Emissions profile (2010) • 247 Mt CO2e
Sectoral emissions share • Energy (57%)
• Industrial processes (9%)
• Agriculture (36%)
• LULUCF (8%)
• Waste (6%)
Source: Initial Biennial Updated Report of Vietnam (2014)
Project Type Registered Projects CER Issuance (kCERs)
Biomass energy 16 85
EE households 1
EE own generation 2
Fugitive 1 8,857
Hydro 200 6,450
Landfill gas 7 248
Methane avoidance 22 638
Reforestation 1
Wind 5 247
Project title Registration Average annual
emission reduction
Introduction of amorphous high efficiency transformers in
power distribution systems in the southern part of Viet Nam
15 May 16 610 (t/CO2e)
Low carbon hotel project in Vietnam: Improving the energy
efficiency of commercial buildings by utilization of high
efficiency equipment
15 May 16 272 (t/CO2e)
Promotion of green hospitals by improving efficiency /
environment in national hospitals in Vietnam
30 Nov 15 515 (t/CO2e)
Eco-Driving by Utilizing Digital Tachograph System 04 Aug 15 296 (t/CO2e)
In 2012, the National Green Growth Strategy was approved, which includes mitigation targets and measures; and regulations on linking with international carbon markets
Interest in markets
8 01/08/2017
Conditional INDC target GHGs emission reduction
compared to BAU: 8% (unconditionally); 25%
(conditionally)
Vietnam INDC states that the
country intends to apply market
instruments.
Vietnam is adopting a ‘wait and
see’ approach to the negotiation
of the Article 6 mechanisms (not
submitted their own proposals).
NAMAs under development may
be used within the
implementation of the
unconditional NDC pledge. Source: Presentation by Nguyen Khac Hieu (2016)
Domestic capacity
9 01/08/2017
• Domestic administration and regulatory capacity
• Vietnam has demonstrated a capacity to plan a national climate change policy framework, intergovernmental coordination.
• However, it needs improving with more clarity needed on the roles of leading authorities to avoid duplication of efforts.
• Accounting capacity
• Inventories for NC have been carried out by Vietnamese organisations with financial support from international organisations (UNEP/GEF).
• The national GHG inventory system has been formulated by the Prime Minister Decision 2359/QĐ-TTg in Dec 2015 and the system has been operating the 1st phase for 2013 inventory (BUR 2) and 2014 inventory (NC3).
• Monitoring, reporting and verification (MRV)
• Vietnam’s Initial Biennial Updated Report (2014) stated that ‘current national and sectoral policies to develop and implement NAMA/MRV are inadequate’.
• Focus of the NAMAs under development is mainly on improving MRV at the sectoral level.
• Domestic capacity for the MRV of hydro power projects most advanced based on experience gained from the CDM.
Source: NAMA Database (2017)
Domestic actions
10 01/08/2017
NAMAs under development
Source: NAMA Database (2017); Market Readiness Proposal for Vietnam (2014)
Project Type Stage Sector Status Description
Biogas for onsite power
generation for
medium/large pig Farms
Under
development
Agriculture
Waste
Energy
Seeking finance
(submitted to
UNFCCC)
During the implementation phase (2016-2020), assuming that 50% of pig farms will be
implemented, it is expected that there will be about 2150 farms installed biogas power
generation system with total capacity in 2020 is 215 MW. Support provided by Danish
International Development Agency.
Supporting Program for
Wind Power
Development in Viet
Nam
Under
development
Energy Seeking finance
(Submitted to
UNFCCC)
Between 2016-2030 it aims to enhance the collaboration and the engagement of relevant
ministries to development wind power development and improve the support for investment
progress of wind projects. Support for the development of this NAMA provided by FIRM
(funded by UNEP DTU Partnership).
Low-carbon bus NAMA Under
development
Transport Seeking finance
(not submitted to
UNFCCC)
Between 2016-2030 it aims to introduce 200 hybrid and 50 plug-in hybrid buses by 2020,
introduction of fuel efficiency measures in bus fleets and bus route optimisation in 3 pilot
cities. GIZ are providing technical support.
Supporting up-scaled
mitigation in the cement
sector
Under
development
Industry Seeking finance
(not submitted to
UNFCCC)
Between 2014-2030 it aims to develop cement sector data and MRV systems and design of a
support scheme for cement sector mitigation actions. Progress so far includes the completion
of a NAMA Cement Readiness Report in 2016, which outlines a roadmap of priority actions
dependent upon future financial support. Supported by the Nordic Partnership Initiative.
Fuel efficiency NAMA Under
development
Transport
Energy
Seeking finance
(not submitted to
UNFCCC)
The objective of the NAMA is to increase energy efficiency in the urban transport sector. The
development of the NAMA proposal is currently carried out by GIZ.
Waste Sector NAMA:
Waste to Resources for
Cities
Under
development
Waste Seeking finance
(not submitted to
UNFCCC)
The NAMA foresees biological treatment of organic waste through composting and anaerobic
digestion, and the recovery, reuse and recycling of inorganic waste. UN-ESCAP currently
providing technical support on the NAMA proposal.
MBIs in Steel & Waste
Sectors in Vietnam
Under
development
Industry Seeking finance
(not submitted to
UNFCCC)
In 2016-2019 NAMA will be designed and will be followed by the implementation of a pilot
crediting NAMA and eventually the application of MBIs such as a cap and trade system. The
work will be funded as part of a Partnership for Market Readiness (PMR) project in Vietnam.
Ethiopia: Country context
11 01/08/2017
Sectoral emissions share
Source: Ethiopia’s INDC
Livestock; 42%
Crop cultivation;
9%
Deforestation and forest degradation
; 37%
Electric power; 3%
Transport; 3%
Industry; 3%
Buildings; 3%
• Mismatch between mitigation potential and available
accounting methodologies
• Implementation challenges
• Capacities for independent off-take
• Timing CH
AL
LE
NG
ES
• Institutional framework development
• Process support (e.g. CDM loan scheme)
• Project conceptualisation and handholding
• Research SU
PP
OR
T
Emissions profile – 146.16 Mt CO2e, 0.4% of global emissions
• CDM sectoral spread reflects national potentials- stoves, reforestation, methane avoidance
• Highest emission reduction potential among African LDCs, but limited project uptake
• 9 registered projects: 3 CDM, 6 POAs
• Increased familiarity of policy makers and lessons
PA
RT
ICIP
AT
ION
Active participation; clearly stated interest in future markets in the NDC
• Mobilise international support towards NDC, CRGE implementation
• Engage in rule development to avoid design limitations of the sort faced in CDM
Conditional NDC target of 255 MtCO2e or 64% reduction from the projected BAU emissions in 2030
SBSTA submissions
Support development of a fresh M&P, but many rules under current mechanisms replicable in Article 6.4
Clarity and harmonisation of NDCs a prerequisite for ITMOs generation
• Quantifiable in GHG terms
• ‘Short term balance sheet’ for long-term targets
Broad commonalities in propositions for Article 6.2 and 6.4 (e.g.‘net mitigation’ from both)
Well-defined domestic structures needed for ensuring quality of ITMOs
• Publicly accessible national registries
• Guarantees for best practice, transparency and accountability codified in legislations
Ethiopia: Interest in future carbon markets
12 01/08/2017
Scalability
factors
Effectiveness
factors
Enabling
factors
Ethiopia: Evaluation of domestic capacities for participation in Art. 6
13 01/08/2017
CDM pilots in sectors relevant for NDC (e.g. forestry, cook
stoves, renewables etc.), and NAMAs
e.g. highest political office coordinates CRGE
Champions in key ministries, private sector interest exists
but not been a major driver so far
Mitigation potential in high risk, pro-development sectors
Detailed coordination protocols, and intra-ministerial
technical structures evolving, esp.at sub-national level
Sector specific challenges with designing and implementing
actions exist
CRGE defines clear, quantifiable targets and actions,
MRV framework development is in progress
Lack of formalisation and standardization of emissions
data reporting, monitoring and storage
Accounting capacities limited, in few sectors and actors
Prior experience
Overall political will and oversight
Interest among stakeholders
Actual mitigation potential in the country
Domestic administrative and regulatory
capacity
Implementation capacity of stakeholders
(primarily private sector)
Quantifiability and transferability of
reductions (clarity in the NDC)
Domestic structures and capacity to MRV
Feasibility of maintaining robust domestic
accounting
Contact details:
Thank you for your attention!
Ritika Tewari
NewClimate Institute
www.newclimate.org
Sean Healy
Öko-Institut e.V.
www.oeko.de
Dennis Tänzler
adelphi
www.adelphi.de
