Carbon market mechanisms
Analysing the interactions between new market mechanisms and emissions trading schemes: Opportunities and prospects for countries to use Article 6 of the Paris Agreement Apr 2019 - This report conducts a detailed analysis of the provisions related to market mechanisms of the Paris Agreement (Article 6), identifies issues that should be taken into account when elaborating the rulebook for the Paris Agreement, and answers the question whether different countries are ready for engaging with market mechanisms under the Paris Agreement.
Carbon pricing options for international maritime emissions Mar 2019 - In this paper we explore three different options for a market-based measure to address the climate impact of shipping: an offsetting scheme, a maritime emissions trading scheme, and a climate levy. We conclude that a climate levy would be the most appropriate measure to reduce emissions in the maritime sector.
Robust eligibility criteria essential for new global scheme to offset aviation emissions Feb 2019 - This letter in Nature Climate Change finds that CORSIA will only compensate for the emissions increase of international aviation if robust criteria for the eligibility of offset credits are adopted.
The future role of the Adaptation Fund in the international climate finance architecture Oct 2018 - Parties will take important decisions about the future of the Adaptation Fund at COP 24 in Katowice, Poland. This paper provides recommendations for those negotiations specifically regarding the Fund’s operating modalities including future mobilization of sources of finance; safeguards; and governance.
Crediting Forest-related Mitigation under International Carbon Market Mechanisms Sep 2018 - This discussion paper explores environmental risks from the inclusion of forest offset credits in the Paris Agreement’s Article 6 and CORSIA, and examines approaches to address such risks. A number of challenges surrounding environmental integrity notably baseline determination, additionality, permanence, and leakage are discussed as well as environmental and social safeguards in forest mitigation initiatives.
Opportunities and safeguards for ambition raising through Article 6 May 2018 - In this paper, we discuss the ambition raising implications to engage in voluntary cooperation under Article 6 for the originating Parties. The paper shows why Article 6 should focus on driving mitigation in otherwise inaccessible abatement options and why it is critical that support should only last for a limited time period, after which own action must kick-in.
Discussion paper: Marginal cost of CER supply and implications of demand sources Mar 2018 - In this discussion paper we estimate the marginal cost of supplying certified emissions reduction units (CERs) from projects that are currently registered under the Clean Development Mechanism (CDM). We develop a supply curve using data on the individual ability of projects to potentially supply CERs over the period up to 2020. We analyse changes to the supply curve based on a number of scenarios which restrict the eligibility of CERs based on the timing of emission reductions, the timing of project investment decisions and registration under the CDM, as well as an assessment of the extent to which projects are vulnerable to the risk of discontinuing abatement activities without CER revenues.
Germany’s international cooperation on carbon markets: Status and prospects in select partner countries Nov 2017 - This suite of four publications try to unpack the black box of where countries stand on their readiness to engage in Article 6 of the Paris Agreement. Article 6 lays down the vision for carbon markets under the Paris Agreement. The three standalone case studies on Ethiopia, Viet Nam and Ukraine discuss country-contexts on Article 6 readiness in an objective manner, looking at the enabling conditions in these countries, the feasibility to maintain robust accounting and MRV, and compatibility of their NDCs. Potential entry-points for international support to facilitate readiness are also discussed. NewClimate institute conducted this work along with partners Oeko Institute and adelphi through the generous support of the German Environment Agency (UBA).
Discussion Paper: CDM Supply Potential up to 2020 Aug 2017 - Authored by NewClimate Institute, Lambert Schneider and Stephanie La Hoz Theuer, this publication forms part of a broader project, commissioned by the German Emissions Trading Authority (DEHSt) at the German Environment Agency (Umweltbundesamt, UBA), with the primary objective to analyse the current situation and development of the international carbon markets.
A Guide to Greenhouse Gas Benchmarking for Climate Policy Instruments May 2017 - NewClimate Institute and Ricardo Energy and Environment developed a comprehensive technical note for World Bank’s Partnership for Market Readiness program (PMR) on the topic of ‘GHG benchmarking for climate policy instruments’.