95 results found

Options for Improving the Emission Unit Eligibility Criteria (EUCs) under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA)
Publication date 04 May 2020

This discussion paper assesses options for improving the current Emissions Unit Eligibility Criteria (EUCs) used for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) adopted by the International Civil Aviation Organization (ICAO), with the goal of ensuring the scheme’s environmental integrity. Clearly articulated EUCs are needed to define minimum standards for the “quality” of carbon offset credits that may be used under CORSIA. For this analysis, we focus on five EUCs that are essential for offset credit quality: additionality; baselines; permanence; avoidance of...

Renewable heating virtual Article 6 pilot
Publication date 29 Jan 2020

Article 6 of the Paris Agreement provides the framework for a new generation of carbon markets in a context where all countries are supposed to formulate and implement ambitious Nationally Determined Contributions towards a temperature target and ratchet their contribution on a regular basis. With the final rules for Article 6 being an issue of ongoing negotiation, virtual pilots can help contribute to the discussion regarding rulemaking for Article 6 and inform new ways to cooperate. NewClimate Institute has identified the installation of ground source heat pumps in Mongolia as a promising...

Net-zero energy housing virtual Article 6 pilot
Publication date 29 Jan 2020

Article 6 of the Paris Agreement provides the framework for a new generation of carbon markets in a context where all countries are supposed to formulate and implement ambitious Nationally Determined Contributions towards a temperature target and ratchet their contribution on a regular basis. With the final rules for Article 6 being an issue of ongoing negotiation, virtual pilots can help contribute to the discussion regarding rulemaking for Article 6 and inform new ways to cooperate. NewClimate Institute has identified the construction of Net-Zero Energy Buildings in Colombia as a promising...

Supporting vulnerable CDM projects through credit purchase facilities
Publication date 15 Jan 2020

This paper assesses whether and how national and multinational credit purchase facilities have supported Clean Development Mechanism (CDM) projects that are vulnerable to the risk of discontinuing GHG abatement. Improving the understanding of the impact that the credit purchase facilities have had in supporting the continuation of emission reductions for vulnerable CDM projects can inform the available options for their further support. Key findings: Although the maximum potential CER supply from existing CDM projects in the 2013–2020 period is 4.65 billion CERs, we estimated that the...

COP 25: The lack of consensus for international carbon market rules should not distract from domestic decarbonisation
Publication date 16 Dec 2019

In stark contrast to the overwhelming wave of optimism for climate action from school children, students, and civil society across the world throughout 2019, the 25th Conference of the Parties (COP) in Madrid closed on Sunday 15th December 2019 with an underwhelming outcome – more damage control than progress on climate ambition. Despite major delays, while Parties scrambled to reach an agreement, delegations departed on Sunday without having reached a consensus on many of the main sticking points. Among several issues on the table, negotiators could not agree on rules for the use of...

The role of international carbon markets in a decarbonising world
Publication date 26 Nov 2019

A growing number of countries have started to set longer-term climate targets and develop decarbonisation strategies in addition to their shorter-term commitments under the Paris Agreement. Depending on the country, offsets in the form of emission reductions or emission removals from abroad play various roles in how countries sketch out future planning. In the context of constantly ratcheted up ambition of national climate efforts under the Paris Agreement however, the role that such offsets can play requires a shift from the current practice of offsetting continued emissions trends to rapidly...

Offset credit supply potential for CORSIA
Publication date 05 Nov 2019

The International Civil Aviation Organisation is in the process of finalising the design of a scheme – the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) – to address carbon dioxide emissions from international aviation. In this discussion paper we estimate the potential supply of carbon offset credits to meet demand from international aviation under CORSIA under a number of different scenarios which include different types of restrictions imposed on the eligibility of offset credits. Our analysis considers supply from the four largest offsetting programmes: the...

CORSIA: Analysis and evaluation of regulating international aviation emissions through offsetting

An assessment of CORSIA – proposed recommendations and evaluated potential sources of supply for offset credits.

Future role for voluntary carbon markets after 2020

An assessment of operating models for voluntary carbon markets, providing recommendations to maintain finance to emission reduction activities.

Analysis of pre-2020 developments in the global carbon market

Developed and applied a method to assess the vulnerability of existing project-based mitigation activities to discontinuing their abatement activity.

How could the concept of an "overall mitigation in global emissions" (OMGE) be operationalized under the Paris Agreement?
Publication date 21 Jun 2019

The Paris Agreement's Article 6 establishes a new framework for using international car-bon market mechanisms. The primary objective of the approaches under Article 6 is to facilitate voluntary cooperation between Parties, to allow for higher ambition and to pro-mote sustainable development and environmental integrity. Moreover, Article 6.4 establishes the concept of delivering an "overall mitigation in global emissions" (OMGE). This paper addresses questions that have been raised in relation to OMGE. It draws on a study conducted by Lambert Schneider and NewClimate Institute.

Virtual Article 6 Pilots

These virtual pilots are intended to be mitigation pilot activities based on real-world contexts, which could be implemented in the future.

Sustainable development framework for market mechanisms

Provides an identification of practical solutions and concrete proposals for the implementation of SD indicators in GHG mitigation projects.

Serious issues in the negotiations on international carbon markets (Article 6) must be addressed to avoid undermining the Paris Agreement
Publication date 14 Jun 2019

Climate negotiators reconvene in Bonn for two weeks from 17th June 2019 to continue discussions on the details for the implementation of the Paris Agreement. An issue area that lacked consensus during the 2018 COP24 in Katowice, the nuts and bolts of Article 6 of the Paris Agreement, will be a major focus of negotiations at the upcoming session. Article 6 of the Paris Agreement establishes a framework that facilitates voluntary cooperation between countries in the implementation of their nationally determined contributions (NDCs) “to allow for higher ambition in countries’ mitigation and...

Analysing the interactions between new market mechanisms and emissions trading schemes: Opportunities and prospects for countries to use Article 6 of the Paris Agreement
Publication date 24 Apr 2019

The project that is summarised in this report had a twofold objective. First, it aimed to conduct a detailed analysis of the provisions related to market mechanisms of the Paris Agreement (Article 6), and to identify issues that should be taken into account when elaborating the rulebook for the Paris Agreement. Second, it switched the perspective from a global discussion towards country-specific research with an aim to answer the question whether different countries are ready for engaging with market mechanisms under the Paris Agreement. To answer this question, the focus was placed on three...

Carbon pricing options for international maritime emissions
Publication date 19 Mar 2019

In this paper we explore three different options for a market-based measure to address the climate impact of international shipping: an offsetting scheme, a maritime emissions trading scheme, and a climate levy. We propose four criteria to evaluate the choice of a market-based measure in the sector, apply these criteria to the three options, and make recommendations as an input into discussions on carbon pricing for the International Maritime Organization. We conclude that a climate levy would be the most appropriate measure to help decarbonize the sector in keeping with the goals outlined in...

Estimation of the carbon offset credit supply potential

These tools provide bottom-up estimates of the volume of credits that could be issued under a range of different scenarios.

Robust eligibility restrictions for offset credits are needed for CORSIA to truly compensate for the growth in aviation's carbon emissions
Publication date 25 Feb 2019

If airlines are allowed to use all available offset credits certified by programmes such as the UN’s Clean Development Mechanism and other voluntary standard bodies under a new global scheme to address international aviation emissions, the scheme will not truly compensate the sector’s growing CO 2 emissions. To achieve the aviation scheme’s objective of carbon neutral growth, policy-makers must adopt robust criteria on the types of offset credits that are accepted. The rules should be designed to ensure that the scheme supports the development of new emission reduction projects or targets...

Robust eligibility criteria essential for new global scheme to offset aviation emissions
Publication date 25 Feb 2019

See our press release on this letter: English / Deutsch Aviation may have contributed as much as 4.9% to global radiative forcing in 2005 and its carbon dioxide emissions could grow by up to 360% between 2000 and 2050. In 2016, the International Civil Aviation Organization adopted a global scheme requiring airline operators to offset increases in carbon dioxide emissions from international flights above 2020 levels. Here we show that the scheme will only compensate for the emissions increase if robust criteria for the eligibility of offset credits are adopted.

Technical advisory services “Global Carbon Market”

Support in strengthening Germany’s cooperation on carbon markets and its position on international emissions trade instruments of the PA.

Operationalising an ‘overall mitigation in global emissions’ under Article 6 of the Paris Agreement
Publication date 21 Nov 2018

Article 6 of the Paris Agreement establishes a framework for international cooperation that enables countries to engage in international carbon market mechanisms. Article 6.4 establishes a new crediting mechanism with international oversight. A key requirement of this new mechanism is that it “shall aim to (…) deliver an overall mitigation in global emissions” (Article 6.4(d)). In the ongoing negotiations on the international rules governing the Paris Agreement, countries have different views on what exactly this requirement means and how it should be operationalised and implemented. This...

Crediting Forest-related Mitigation under International Carbon Market Mechanisms
Publication date 19 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. Key findings: Preserving and enhancing forests is an essential part of global efforts to mitigate climate change. Currently, most finance for forest-related mitigation is provided...

Event: Costs and climate impact of offsetting emissions under CORSIA
Venue Innovate4Climate in Frankfurt
Date 22 May 2018

Carsten Warnecke , Thomas Day , Harry Fearnehough and Lambert Schneider presented on "Costs and climate impact of offsetting emissions under CORSIA" at the side event "Towards long-term national scenarios: Modelling meets policy" during the 2018 Innovate4Climate in Frankfurt.

Opportunities and safeguards for ambition raising through Article 6
Publication date 09 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. Whilst participation in mechanisms may potentially deliver benefits, the realisation of these opportunities is entirely dependent on the effective design and implementation of measures to safeguard against potential risks that can...

Discussion paper: Marginal cost of supply of certified emissions reduction units and implications of demand sources
Publication date 22 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...

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