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
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 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’.
Authored by NewClimate Institute and the Öko-Institut, 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
Climate Policy Analyst, Ritika Tewari, presented the findings of the ‘Innovative Financing for the Adaptation Fund: Pathways and Potentials’ report at the 29th Adpatation Fund Board meeting that took place during the 16th and 17th March in Bonn, Germany. Read the full report
This new report explores the potential of seven innovative climate finance options to meet the financing needs of the Adaptation Fund. It concludes that if implemented in a collective manner, these can provide a steady and predictable stream of finance for the Fund. However, the Adaptation Fund Board needs to proactively engage with relevant decision makers, following a dynamic resource mobilisation strategy. Potential engagement pathways for each option are discussed as well. Read More
The purpose of this paper is to identify the main goals and aims of the international carbon market, take into account the general context and environment for carbon markets under the Paris Agreement, identify and discuss the main issues of the relevant paragraphs and analyse issues of the interaction and relationship of the provisions including synergies and conflicts. The paper aims at facilitating the discussion among UNFCCC parties while, given the dynamic nature of the topic, it can obviously only be a snapshot of the current status of the discussions. Read More
Carsten Warnecke from NewClimate Institute presents at COP22 in Marrakesh on innovative financing options for the Adaptation Fund. 09 November 2016, 11:30 Mediterranean Room, COP22 Livestream
NewClimate Institute contributed to a policy brief on ‘Two unconventional options to enhance multilateral climate finance’ under the European Capacity Building Initiative (ecbi). Read More
02 December 2015 Thomas Day of NewClimate Institute presents at COP 21 on “The impact of the Clean Development Mechanism – Quantifying the current and pre-2020 mitigation impact of the CDM”. Wednesday, 2 December, 12.00, German Pavilion.
02 December 2015 Carsten Warnecke of NewClimate Institute presents at COP 21 on “The status quo, prospects and outlook of market mechanisms”. Wednesday, 2 December, 12.00, German Pavilion.
This focus study presents a quantitative assessment of the mitigation impact of the CDM that occurs as a side effect of the current depressed market conditions. The annual net mitigation impact of the CDM in 2014 is in the order of 480 MtCO2e and thus might have reduced global emissions by approximately 1% in 2014 Read More
The situation of project activities, and domestic and international capacities related to the CDM, have noticeably deteriorated following the recent decline of the market conditions. However, a major information gap exists regarding the actual status of individual CDM projects worldwide, as well as their current barriers and required means for the continuation of these projects. In order to close this gap, a large representative sample of projects were evaluated individually in a recent study to extract insights and lessons regarding national situations, technology-specific considerations, and the CDM as a whole. Read More
This study clarifies the definition of results-based financing (RBF) and in particular its role in the context of climate policy. The publication is aimed at readers from the carbon markets and climate finance communities alike. It facilitates a common understanding of what RBF as a financing modality involves and is therefore meant to also be a good starting point for readers looking into this topic for the first time. Read More
he international carbon market is characterised by an activity gap between existing and future market-based mechanisms. Project-based carbon market mechanisms – such as the Clean Development Mechanism (CDM) – no longer provide sufficient incentives for the initiation of greenhouse gas mitigation activities in developing countries. At the same time, procedures and modalities for new mechanisms are not yet defined. This transition period creates substantial challenges to maintain the expertise of various stakeholder groups, to test new mechanism approaches in practice and to support the final definition of new mechanisms. Against this background, the underlying research analysed opportunities for piloting market-based approaches at the sectoral level on the basis of bilateral agreements between donor and implementing countries.
This discussion paper provides an overview of the development of the international carbon market mechanisms and emerging domestic carbon pricing systems, and lays out three distinct but potentially complementary options for market mechanisms in a future climate change agreement. Options for narrowing the emissions gap before 2020 using market mechanisms are also explored. Read More
This research conducted by NewClimate Institute and Ecofys on behalf of the German Federal Ministry for Environment, Nature Conservation, Building and Nuclear Safety (BMUB), seeks to address major gaps in the current understanding regarding the status of individual CDM projects worldwide, as well as the barriers and means for supporting the continuation of these projects. Read More