Climate 411

COP26: 4 Reasons Carbon Markets Rules under Article 6 (Finally) May be Agreed in Glasgow

By Kelley Kizzier / Bio / Published: October 28, 2021

The SEC Centre in Glasgow Credit: CC0/PublicDomainPictures.net

Interest in carbon markets is currently booming and with increased activity comes increased attention and, of course, familiar criticism. A high-integrity carbon market can help companies and countries increase their ambition on the pathway to net zero by mid century.

If designed well, the carbon market can channel public and crucial private sector investment from developed to developing countries and to the most urgent areas for climate action — like tropical forest protection.

A few key changes since countries met at COP25 in Madrid mean we are in a better position to get agreement on Article 6 at COP26 in Glasgow. Read More »

Also posted in Carbon Markets, News, United Nations / Read 1 Response

Where the U.S. stands going into COP26

By Danielle Arostegui / Published: October 12, 2021

After a year-long delay from the pandemic, COP26 — the next UN meeting aimed at accelerating global action on climate change — is right around the corner. As a newly rejoined Party to the Paris Agreement under the leadership of President Biden, the United States will be arriving under much different circumstances than the last COP. But will other countries see the U.S. participation and its new commitments as credible? Will the United States be positioned to push global ambition to the levels needed to beat the climate crisis? The answers to those critical questions depend on how much policy progress the U.S. can make at home.

In April, the United States renewed its commitment to meeting global climate targets, including through an ambitious new nationally determined contribution (NDC) that pledges to reduce U.S. emissions by 50-52% from 2005 levels by 2030. While highly ambitious, multiple analyses have demonstrated that this goal is also achievable, lending much-needed credibility to the U.S. pledge. Since then, the Biden administration has unveiled a series of actions intended to move the country towards achieving that goal.

Critically, one of the largest and most significant components of the president’s plan to tackle climate change is a piece of legislation that is currently in active stages of negotiation in Congress. Getting this bill and the included climate investments across the finish line will be crucial to meeting our climate goals. On top of that, the U.S. must also ratchet up regulatory climate action at the federal and state level to meet our 2030 pledge, as incentives and investments alone won’t be enough to slash emissions at the pace and scale needed.

So what has the U.S. accomplished since announcing its new NDC in April and what is still on the table? Here is where progress stands.

Also posted in Greenhouse Gas Emissions, Jobs / Comments are closed

A U.S. economy-wide methane target: essential, achievable, affordable

By Ilissa Ocko / Bio / Twitter profile / Published: March 19, 2021

The Biden administration is preparing to announce a new U.S. greenhouse gas emissions target for 2030 under the Paris Agreement — a pledge known as a Nationally Determined Contribution, or NDC — in advance of this year’s United Nations climate talks. Given the last four years of U.S. climate inaction and denial, it is important that the U.S. put forward an ambitious yet credible target and restore its position as a global leader on climate.

Although many countries pledge a single headline target that includes all greenhouse gas emissions, we believe that a complementary methane target is an essential addition that will considerably benefit the climate. Although it would include methane, a combined target is not sufficient to ensure that immediate and strong actions are taken to reduce methane emissions at the extent warranted.

Also posted in Greenhouse Gas Emissions, Science / Read 2 Responses

A bold new commitment to the Paris Agreement is achievable – and essential for U.S. leadership

By Susanne Brooks / Bio / Published: March 3, 2021

This blog post was co-authored with Nat Keohane, Senior Vice President for Climate at EDF.

Now that the United States is officially back in the Paris Agreement, after four years of climate inaction and denial, all eyes are on the Biden administration to see whether it will meet the moment by putting forward a new emissions reduction commitment that is both ambitious and credible. In order to hit both marks, the administration should commit to cut total net greenhouse gas emissions by at least 50% below 2005 levels by 2030 – a target that is consistent with the science and President Biden’s goal of a net-zero economy by 2050, commensurate with commitments of other advanced economies, and one that many state leaders, businesses, advocates and others are already calling for.

This year’s UN climate talks, known as COP26 and set to take place in November, will be a proving ground for the Paris Agreement framework. Countries must come to the table with more ambitious climate targets known as Nationally Determined Contributions, or NDCs. Collectively, these NDCs must put the world on a path consistent with the Paris Agreement’s objective of limiting global temperature rise to well below 2°C and pursuing efforts to limit the increase to 1.5°C.

The United States has the chance to regain a position as a global leader on climate – and to galvanize climate action around the world – by setting an ambitious target that meets the scale of the climate crisis. The new U.S. NDC must also be credible – meaning that one or more technically and economically viable policy pathways can be identified to achieve it. Using a range of analyses, a new EDF report demonstrates how a bold new commitment of reducing total net GHG emissions at least 50% below 2005 levels by 2030 is achievable through multiple policy pathways – and that charting an ambitious path on climate is essential for growing a stronger and more equitable, clean U.S. economy.

Also posted in Climate Change Legislation, Greenhouse Gas Emissions, International, Jobs, Policy, United Nations / Comments are closed

COP 25: The mess in Madrid – and how international carbon markets can still drive ambition despite it

By Nat Keohane / Bio / Published: December 16, 2019

Midnight COP 25 plenary on Dec. 14 in Madrid. UNclimatechange via Flickr.

At just before 2:00 pm Sunday afternoon in Madrid, at a sprawling conference center on the outskirts of the city, a new record was set — and not an enviable one. That’s when the gavel finally fell on COP 25 — the 25th meeting of the Conference of the Parties to the UN Framework Convention on Climate Change — making it the longest COP in history, as it extended nearly 44 hours past its scheduled end.

Even with all that extra time, however, negotiators from 197 Parties were unable to reach agreement on virtually anything of real consequence, including one of the issues that topped the conference agenda: guidance for promoting the integrity of international carbon markets, in particular by ensuring consistent and robust accounting of emissions reductions transferred among countries.

While that failure is widely recognized, the outcome also offers three key implications for how markets can move forward.

First, negotiators came surprisingly close to a good deal. That provides a foundation for negotiators to build on next year – although it’s not at all clear that having failed two years in a row, the third time will be the charm.
Second, countries that are serious about markets don’t need to wait for the UN to provide guidance: they can and should move ahead to set their own rules.
Third, the failure to reach agreement puts the Kyoto Protocol’s offset program (known as the Clean Development Mechanism) on shaky legal ground – something that decision makers at the UN’s aviation agency, ICAO, should heed.

How markets can help drive ambition

Markets may seem like a surprising headline topic for an international climate negotiation. But they are a central, if underappreciated, tool to make faster, deeper cuts in climate pollution — which is desperately needed, given the growing gap between the world’s current emissions trajectory and where we must go to meet the Paris Agreement’s objective of limiting warming to well below 2 degrees Celsius.

The Paris Agreement expressly recognizes, in its Article 6, that carbon markets provide a critical tool to enhance ambition. Market-based international cooperation enables countries to do more together than they could on their own. Economic analysis by EDF shows that carbon markets could achieve nearly double the emissions reductions relative to current Paris Agreement commitments, at no extra cost. The current nationally determined commitments (NDCs) are nowhere near ambitious enough to meet the objectives of the Paris Agreement, and we need all the tools in the box to avoid climate catastrophe.

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COP 25: Carbon markets in the spotlight

By Alex Hanafi / Published: December 3, 2019

Staff and volunteers welcomed at COP 25 in Madrid.
UNclimatechange via Flickr

International cooperation on carbon markets, covered in Article 6 of the Paris Agreement, is at the top of the agenda for the COP 25 climate talks in Madrid this week. Since leaving the Article 6 section of the Paris Agreement without agreement at COP 24, negotiators have continued to work over the past year to garner support for a deal, before countries shift focus to preparing their critical next round of NDC pledges, due next year.

They will do this against a backdrop of political disruption, but continued determination to finalize the Paris Agreement’s operating instructions, known in the UN as the “rulebook”.

Civil unrest in Chile led that country’s president to take the unprecedented step of canceling the climate conference only five weeks before its scheduled start. Spain quickly stepped in the next day to offer to organize the negotiations, known as COP 25, in Madrid. The United States earlier this month officially began the process to withdraw from the Paris Agreement. All this is happening while the increasing impacts of climate change are being felt around the world; fires have ravaged Australia and California, while historic flooding is drowning Venice and dangerous pollution is choking Indian cities. And a new World Meteorological Organization report confirms that the atmospheric concentration of three key greenhouse gases – methane, CO2, and nitrous oxide – continues to rise.

Although the ultimate success of the Paris Agreement will be judged many years from now, how the rules on international carbon markets are decided in Madrid could make or break the ambition of the Paris Agreement.

That’s because international carbon market cooperation underpinned by strong accounting and transparency rules can help drive emissions down significantly: research shows that well-designed carbon markets could nearly double the ambition of current national climate pledges, at no extra cost.

However, weak rules for carbon trading between countries could fundamentally undermine the Paris Agreement. By allowing countries and the private sector to “count” carbon credits that don’t represent real emissions reductions, a bad set of rules on Article 6 could negate the climate ambition of current climate pledges.

What is a good Article 6 agreement?

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