This paper analyses the impact of credit purchase facilities for supporting vulnerable CDM projects. Read More
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. Read More
The goals of the Paris Agreement require countries to develop and implement long term strategies which chart out the fastest decarbonisation pathway technically feasible. The role of offsets in such a decarbonising world must shift from current practice to avoid undermining the ambition and meaning of net-zero targets. Read More
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. Read More
In this blogpost, the NewClimate markets team provides recommendations for the imminent SB50 negotiations to guarantee that Article 6 ensures its mandate to promote ambition and avoid undermining global climate efforts. Read More
Carsten Warnecke presented on “Offsetting emissions under CORSIA – Analysing the potential supply of credits” at Innovate4Climate in June 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. Read More
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. Read More
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 CO2 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 existing projects that would stop reducing emissions without further financial support. New research outlines the climate implications of various eligibility scenarios for offset credits. Read More
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. Read More
Aki Kachi, Harry Fearnehough and Thomas day presented on “From the skies or the sea: How can regulation align international transport with the Paris goals?” at COP24. Read More
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. Read More
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. Read More
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. Read More
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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. Read More
Ritika Tewari (alumni) from NewClimate Institute presented findings from the Germany’s international cooperation on carbon markets report that is looking at Ukraine, Vietnam and Ethiopia readiness to implement Paris Agreement’s Article 6.
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). Read More
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. Read More
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’.