Climate and Energy

Regional Knowledge Sharing Workshop on International Market Mechanisms and Transparency under the Paris Agreement

Article 6 of the Paris Agreement (PA) provides the opportunity for Parties to participate in international market mechanisms. At the same time, the PA’s Article 13 mandates each Party to regularly provide information on progress made in implementing and achieving its NDC. Therefore, it will be necessary in the future to enhance the readiness of countries for transparently reporting, including the use of international market mechanisms. With the support of the Ministry of the Environment, Japan (MOEJ), IGES in collaboration with the UNFCCC-IGES Regional Collaboration Centre (RCC) for Asia and the Pacific organised the “Regional Knowledge Sharing Workshop on International Market Mechanisms and Transparency under the Paris Agreement” on 26-27 February 2018 in Bangkok, Thailand. Policymakers and negotiators from four partner countries, namely Cambodia, Lao PDR, Thailand and Viet Nam, and other invited experts shared their understanding of and interest in reporting on the use of international market mechanisms, including avoidance of double counting, and discussed common challenges and the way forward.

Date 26-27 February 2018
Venue Kamolmart, 6th floor, the Sukosol Hotel, Bangkok 477 Thanon Si Ayutthaya, Khwaeng Thanon Phaya Thai, Khet Ratchathewi Krung Thep Maha Nakhon 10400, Thailand
Organiser Institute for Global Environmental Strategies (IGES)
UNFCCC-IGES Regional Collaboration Centre (RCC) for Asia and the Pacific
Language English
Number of participants Approx. 30
Agenda PDF(147KB)
Summary

After a variety of presentations on each country’s experience, inputs from experts on Article 6 and Article 13, and intensive discussions through group exercises, IGES identified the following key findings and possible inputs to UNFCCC process related to robust accounting under Article 6 and the MPG of the ETF under Article 13.

  1. In applying possible arrangements for robust accounting including avoidance of double counting, information on emission reduction projects under international market mechanisms is needed. Information needed, such as amount and timing of credits transferred and used, is not always available for most of countries in timely manner, though such information is usually tracked and existing in registry systems.
  2. Robust accounting including avoidance of double counting should recognise the situation where the reported figure of emissions and removals in national greenhouse gas (GHG) inventory reports in a specific year could change as a consequence of improvements in data and methodologies.
  3. Countries expressed a strong need for understanding deeply the linkages between Articles 4, 6 and 13, as discussed in international negotiations, and technical implications on the actual implementation of reporting by countries. The latter includes understanding the linkages of possible options between avoidance of double counting, and the emissions and removals reported in GHG inventory reports.
  4. Capacity in developing countries for preparing national GHG inventories can be enhanced significantly through improvements in institutional arrangements, data collection systems, political leadership and domestic budget. Possible benefits for developing countries to do so under the PA may include effects of mitigation actions can be more visible, and effective decision making may become possible based on inventory data.
  5. Data collection systems can benefit from an enhanced legal mandate for governmental agencies to cover provision of necessary data and data quality assurance. A decentralised system, in which inter-ministerial data collection and review are done in an iterative manner, was seen as a good suggestion to enhance quality of reports.

Possible inputs to UNFCCC process

  • Robust accounting:
    In order to ensure that robust accounting works, not only tracking information but also reporting that information in a transparent manner is necessary. Therefore, in addition to developing an information tracking system, arrangements should be developed internationally for reporting information from countries involved in international market mechanisms and administrators of mechanisms, e.g. using a common format.
  • Transparency framework:
    Systems have to be created where developing countries can improve their transparency over time. Under the system, it is important that developing countries can repeat the process of submitting national reports and receiving reviews on those submitted reports frequently, so that they become familiar with the process and improve subsequent reports.
  • Identifying and reporting capacity-building needs:
    Guidance under the ETF should cover more details of the approaches for identifying and reporting capacity-building needs. This can help not only to enhance transparency of capacity-building status, but also to effectively allocate resources for capacity-building activities in a country.

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