Evaluation and analysis of domestic and international carbon market mechanisms, with the objective to inform design of new mechanisms which can support countries to achieve their climate commitments, to increase future ambition, and to support sustainable development.
Carbon market mechanisms play an important role in many international and domestic discussions around climate change mitigation efforts and come with both opportunities, but also risks. Internationally, the 2015 Paris Agreement set out provisions for market mechanisms to assist countries in achieving their nationally determined contributions, increase ambition and support sustainable development. Parties continue to work on the exact design of these mechanisms. International aviation and shipping are also considering carbon market mechanisms as a climate change measure. The “Carbon Offsetting and Reduction Scheme for International Aviation” (CORSIA), is set to begin from 2021; and International Maritime Organization (IMO) also lists market-based measures as a candidate measure for its strategy to reduce GHG from global shipping. Increasing numbers of national and sub-national jurisdictions are also working on various forms of carbon pricing.
NewClimate Institute is active in the field of analysis, evaluation and design of international and domestic carbon market mechanisms. We evaluate the Kyoto mechanisms and reflect on the lessons learned from them to inform the design and development of future mechanisms, particularly those that increase mitigation ambition of countries and deliver an overall mitigation impact. Our experts combine years of experience working in various capacities with the Kyoto Protocol mechanisms such as the Clean Development Mechanism (CDM) and the Joint Implementation (JI), the EU ETS and voluntary offsetting markets; provide inputs to discussions under CORSIA and IMO; and advise international policy makers on emerging market concepts and piloting activities.
In this project, NewClimate Institute, is working to elaborate virtual Article 6 pilots to contribute to the discussion regarding rulemaking for Article 6 of the Paris Agreement and inform eventual future investment considerations.
This ongoing research project aims to overcome the previously identified barriers to combine SD and GHG mitigation impacts through the identification of practical solutions and concrete proposals for the implementation of SD indicators in GHG mitigation projects.
NewClimate Institute was contracted by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), as part of a larger consortium, to advise GIZ’s agency on its “Global Carbon Market” project.
Creating a practical and in-depth guide on how to design and implement benchmarks for policy makers. Return to all expertise and projects World Bank Partnership for Market Readiness programme (PMR) has contracted NewClimate Institute and Ricardo Energy and Environment to develop a Guide for providing an overview and practical guidance for policy-makers and practitioners on the main design elements… Read More
Assessing potentials and pathways for financing adaptation through carbon pricing approaches
Energy Efficiency and Climate Change Mitigation in Colombian Housing Return to all expertise and projects Colombia faces an affordable housing deficit, rapid urbanisation pressure, and the need to improve energy efficiency to reduce emissions from the building sector while working towards longer term decarbonisation. To address these challenges, NewClimate Institute and Oeko Institute, supported by… Read More
Design and integration of market mechanisms and emission trading schemes under a new climate change agreement. The German emission trading authority (DEHSt/UBA) contracted NewClimate Institute together with adelphi and Öko-Institut to provide a foundation for the formulation and further development of a German position in the climate negotiations, and to facilitate a scientifically-based contribution of… Read More
Analysis of the potentials and limits of different offset standards in bilateral and global CO2 price systems. Currently, an increasing number of countries and regions develops CO2 pricing mechanisms, including carbon taxes and emission trading systems. Some of these countries are designing or plan to design standards for the use of offsets in their pricing… Read More
Continuous analysis of the status and developments of mitigation activities in the global carbon market up to 2020. The German Emission Trading Authority (DEHSt) at the Federal Environment Agency contracted a consortium led by NewClimate Institute, to follow and evaluate the current situation and developments in the international carbon market over the period up to… Read More
Overview of the options for the use of carbon market mechanisms in a 2015 climate change agreement
Development of a methodology and scorecard to assess the carbon integrity of mitigation actions
Current situation of results-based financing (RBF) approaches in climate policy.
Opportunities provided by bilateral agreements for piloting market-based approaches at sectoral levels. The research work analyses how bilateral agreements between countries could be used to pilot international carbon market activities on sectoral levels to ensure a minimum activity level in this transition period from existing to new mechanisms. Return to all expertise and projects The… Read More
Evaluation of the present implementation status of CDM projects and identification of support measures to keep CDM projects mitigating. Return to all expertise and projects The Clean Development Mechanism (CDM) was introduced by the Kyoto Protocol and has developed into one of the most important international carbon market instruments. The CDM stimulated investments in greenhouse… Read More