Discussion Paper: CDM Supply Potential up to 2020

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

Vulnerability of CDM Projects for Discontinuation of Mitigation Activities

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

Innovative Financing for the Adaptation Fund: Pathways and Potentials

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

International market mechanisms after Paris

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

Impacts of the Clean Development Mechanism

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

Where do they go from here? Analysing the status quo of CDM projects

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

Connecting the dots – Results-based financing in climate policy

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

Bilateral agreements as basis towards piloting sectoral carbon market mechanisms

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.
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Carbon market mechanisms in future international cooperation on climate change

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

Analysing the status quo of CDM projects

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

Beyond pure offsetting: Assessing options to generate Net-Mitigation-Effects in carbon market mechanisms

Carsten Warnecke, Sina Wartmann, Niklas Höhne, Kornelis Blok
This research analysed the question if approaches for carbon market-based mechanisms exist that allow the generation of net emission reductions in host countries while keeping project initiation attractive. We present a criteria-based assessment method and apply it for four generic options in existing mechanisms and derive implications for future mechanism frameworks. Read More

China starts trading carbon

Christian Ellermann, Constanze Böning
This article explains the nature of the new pilot greenhouse gas emission trading schemes (ETS) in China, as well as the significance of their introduction. By moving towards the allocation of emission rights through market mechanisms, the government is signalling that it is addressing climate change seriously and that it wishes to be compared to Europe and the most progressive regions of North America that have also adopted emissions trading. However, the authors also argue that a transition to a more important role for markets in the area of energy and the environment is still in its very early stages. Read More