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  • 1
    Language: English
    Pages: 1 Online-Ressource (55 p.)
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2019/05
    Keywords: Energy ; Environment
    Abstract: Different options of methodological approaches for setting emission baselines are currently under consideration in the international climate negotiations. This paper examines options for baseline approaches for the Article 6.4 mechanism, and draws lessons from how baselines have been used for other market mechanisms. The paper highlights that the different approaches being discussed offer advantages and disadvantages in the context of Article 6.4. Moreover, the paper points out that a one size- fits-all approach to setting baselines is unlikely to be appropriate for the new mechanism, given the variety of possible mitigation activity types and contexts. In particular, analysis of Clean Development Mechanism projects shows that a single baseline approach led to wide variations in baseline levels, implying the need to revise some methodologies if they are to be applied to Article 6.4. The paper also discusses benefits and implications for host Parties participating in the Article 6.4 mechanism, which may affect how Parties achieve their NDCs.
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  • 2
    Language: English
    Pages: 1 Online-Ressource (43 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2013/03
    Keywords: Energy ; Environment
    Abstract: A new international climate change agreement that will have legal force and be applicable to all countries is being negotiated under the auspices of the United Nations Framework Convention on Climate Change (UNFCCC). The agreement is to be adopted by 2015 and come into effect from 2020. An effective agreement would include quantitative mitigation commitments from all major emitters and result in concrete actions to reduce greenhouse gas emissions while catalysing long-term transformations to low-carbon and climate-resilient economies. The aim of this paper is to explore what mitigation commitments put forward under the 2015 agreement might look like, what guidance might be agreed regarding the type of commitments proposed, and which “rules of the game” would need to be agreed before draft commitments for the post-2020 period are put forward. The paper outlines what ex-ante information would need to be provided in order to understand commitments, and explores whether guidance could take the form of “bounded flexibility” for the various dimensions describing mitigation commitments in order to provide a basis for post-2020 emissions accounting and tracking progress. It also describes possible stages of the process for establishing commitments for the 2015 agreement.
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  • 3
    Language: English
    Pages: 1 Online-Ressource (58 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2013/01
    Keywords: Energy ; Environment
    Abstract: Mitigation pledges put forward by countries under the UNFCCC process are "made to measure" in that they are tailored to fit each country's individual circumstances. However, the pledges also need to be made to be measured so that we have a full understanding of how the various commitments add up to an aggregate global mitigation effort. The Kyoto Protocol provides the only existing international emissions accounting framework, but it applies only to developed countries with specific commitments. This paper assesses what would be required, in addition to existing reporting requirements, to build a robust emissions accounting framework under the UNFCCC applicable to a broad range of Parties. The paper first identifies necessary building blocks for an emissions accounting framework and assesses progress made in agreeing international reporting processes. It then looks in detail at the two most challenging areas for emissions accounting. The first area is accounting for flows of tradable units from market-based mechanisms, including international flows between linked domestic trading systems as well as from offset crediting mechanisms. The second area is accounting for emissions and removals from the forestry and land-use sectors, which have characteristics that make emissions accounting challenging: the need to distinguish anthropogenic emissions from natural variations, to deal with long time-frames and to measure sinks as well as sources of emissions. Finally, options are presented for how these issues might be taken forward in the negotiations, and how negotiators can build on recent progress made on reporting formats.
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  • 4
    Language: English
    Pages: 1 Online-Ressource (52 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2012/03
    Keywords: Energy ; Environment
    Abstract: Carbon market mechanisms such as emissions trading systems and crediting mechanisms can have multiple objectives. A key goal is to lower the cost of achieving greenhouse gas (GHG) emissions reductions. Market mechanisms can also catalyse investment in low carbon technologies and practices, provide local environmental and health benefits, contribute to fostering innovation, provide a source of government revenue and facilitate more ambitious mitigation action in future. They can therefore play an important role in the diverse policy toolkit needed to address the global issue of climate change. This paper identifies the key design elements of market mechanisms and examines the governance structures and decision-making processes used to create tradable GHG units in existing systems both inside and outside of the UNFCCC. The analysis explores the potential involvement of international, national and sub-national regulatory bodies in the governance and decision-making processes and the possible role that internationally-agreed standards could play in providing confidence in the quality of GHG units.
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  • 5
    Language: English
    Pages: 1 Online-Ressource (55 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2012/02
    Keywords: Energy ; Environment
    Abstract: At COP 17 in Durban, countries defined a new market-based mechanism to promote cost-effective mitigation actions, guided by a set of principles previously agreed at COP 16. These principles include “stimulating mitigation across broad segments of the economy”, “ensuring a net decrease and/or avoidance of global greenhouse gas emissions” and “assisting developed countries to meet part of their mitigation targets”. This paper explores the use of ambitious crediting baselines for groups of emitters as the basis for a new market mechanism that meets the principles listed above. It focuses on how to define groups of emitters and explores different approaches for building ambition into baselines including using emissions projections and performance benchmarks. Potential elements of a process for setting baselines for subsequent international recognition are also presented. The paper builds on extensive previous analyses carried out on emissions baselines for market mechanisms, taking into account recent developments in the international negotiations.
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  • 6
    Language: English
    Pages: 1 Online-Ressource (25 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2012/04
    Keywords: Energy ; Environment
    Abstract: Greenhouse gas (GHG) emissions baselines are reference emissions levels. This paper focuses on projected forward-looking baselines that can be used both to inform national climate policy and to set goals that are defined relative to a business-as-usual (BaU) scenario. As some developing countries have defined national mitigation goals for 2020 in this way, the underlying assumptions and methodologies used in setting these emissions baselines are relevant for assessing the magnitude of both the country's expected total emissions reductions and the global aggregate emissions mitigation effort. Currently, there is limited international guidance available on setting national GHG baselines. The resulting variance and lack of transparency makes it difficult to understand emissions pledges defined as relative to BaU, and difficult to compare emissions scenarios across countries. Moving towards international guidance on setting baselines could improve transparency, clarity and comparability, while still allowing countries to maintain diversity in approaches. This paper discusses good practice and presents options for how guidance might be developed for key elements of baseline setting. The options are presented as “tiers” that move from less detailed to more detailed guidance. The first tier describes guidance that would leave maximum flexibility for individual countries, whilst encouraging transparency. The second tier offers more detailed guidance for countries with greater domestic resources and capabilities. Countries could adhere to the tiers according to their capabilities, although they would be encouraged to follow the more detailed approach. The proposed tiers represent different levels of detail, rather than accuracy or data quality. More detailed guidance does not necessarily lead to “better” baselines, though it may help to improve understanding of different baselines.
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  • 7
    Language: English
    Pages: 1 Online-Ressource (66 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2011/01
    Keywords: Energy ; Environment
    Abstract: This paper examines environmental and institutional implications of the use of tradable GHG units under different international accounting scenarios in the post-2012 international climate change policy framework. A range of possible scenarios is presented based on analysis on various building blocks for emissions accounting. On one side continuation of a Kyoto Protocol type accounting approach is considered with allocation of centrally-administered emissions allowances for Annex I countries. On the other side, a less centralised system is presented based on emission reduction pledges by countries. Aspects of these two scenarios are then combined to identify common elements in a middle ground scenario. The middle ground scenario presented would not use centrally-allocated emissions allowances but would retain some level of commonly-agreed accounting rules to ensure shared understanding of the content and scope of pledges, and to provide a stable platform for international use of offset units. The middle-ground scenario also envisages a role for UNFCCC bodies to set standards for new credit-based market mechanisms, and suggests that the existing International Transaction Log might be modified to track new unit types in addition to existing Kyoto Protocol units. Transparent tracking of units would help to minimize the risk of “double counting” of emissions reductions towards the emissions objective of more than one country.
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  • 8
    Language: English
    Pages: 1 Online-Ressource (64 p.) , 21 x 29.7cm.
    Series Statement: OECD/IEA Climate Change Expert Group Papers no.2011/05
    Keywords: Energy ; Environment
    Abstract: The use of tradable greenhouse gas (GHG) units to meet emissions reduction goals is likely to continue after 2012 as many countries have expressed support for using market mechanisms to promote and enhance the cost-effectiveness of mitigation. Most such mechanisms would use tradable GHG units but it is not yet clear how such units will be accounted for and recognised as contributions toward national pledges or targets. This paper examines the systems and processes that may be required to achieve effective use of tradable GHG units by first considering what international framework would be required to provide a reliable, functional platform for use of tradable GHG units. One effective system would be for national emissions to be reported using common inventory accounting rules, with subsequent additions and deductions according to net flows of tradable units. The paper then analyses more detailed options for two core aspects of GHG unit accounting: governance of international crediting mechanisms and systems for tracking international unit transactions. For crediting mechanisms, three options are presented for deciding which units may be eligible to count towards national emissions targets: i) only units issued from a centralised mechanism regulated by the UNFCCC would be eligible, ii) units issued from country-led systems would be eligible provided that they are verified to meet internationally-agreed eligibility criteria and iii) a transparency approach whereby all units would be accepted provided that countries meet minimum disclosure requirements. For unit tracking systems, three further options are presented: i) a continuation of the existing International Transaction Log (ITL) that performs both technical and policy-related checks, ii) a ITL or similar tool that performs only technical compatibility checks, and iii) a decentralised system with no central hub. Accounting issues related to domestic emissions trading system units are also explored, notably in cases where such units are traded internationally. The paper concludes that only certain combinations of the various options presented would lead to a viable system that is both practical and provides sufficient assurance of the environmental integrity of units.
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