Selected category: UN negotiations

Solving the “Paris equation”: The role of carbon markets in meeting the Paris Agreement’s ambitious goals

Source: UN,

Source: Flickr, UN Photo/Mark Garten

As nations around the world consider the results of the historic climate agreement reached at the 21st annual climate talks in Paris last December, one thing is clear: the Paris Agreement is contributing to – and a sign of – growing momentum around the world to address climate change. For the first time in history, nearly all the countries of the world have put forward concrete pledges to cut pollution and address the impacts of climate change on local communities.

Two significant outcomes of the Paris Agreement reflect that momentum:

  1. A more ambitious global goal, in which nations agreed to hold warming to “well below” 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial levels, and “pursue efforts” to limit warming to no more than 1.5 degrees Celsius (2.7 degrees Fahrenheit).
  2. A requirement that nations come back to the table every five years to strengthen their individual pledges, in order to achieve their collective goal over time.

While the pathway necessary to limit warming to 2.7 or even 3.6 degrees Fahrenheit is not specified by the Paris Agreement, nations did agree that they would achieve a “balance” between anthropogenic (i.e., human-caused) emissions of greenhouse gases (GHGs) and anthropogenic removals by so-called carbon sinks, such as via reforestation or afforestation, “in the second half of this century.” That translates to the following simple equation, which nations agreed to solve no later than 2100:

(anthropogenic emissions of GHGs) – (anthropogenic removal of GHGs by forests and other sinks) = 0

Notably, nations also provided several market- and transparency-related tools that could help solve this “Paris equation”:

  • Provisions that facilitate high-integrity, “bottom-up” linkages of domestic carbon markets to cut carbon pollution. These linkages (described in the Agreement as “cooperative approaches”) promise to reduce costs, and unlock the finance needed to drive deeper global emissions reductions;
  • A new, centralized market mechanism, governed by the UN Framework Convention on Climate Change (UNFCCC), to reduce GHG emissions and contribute to sustainable development; and
  • An enhanced transparency framework, requiring regular reporting and review of all nations’ climate efforts.

These three elements of the Paris Agreement reflect the widespread recognition among nations that carbon markets accompanied by a clear, comprehensive transparency framework will help drive the deep emissions reductions called for by science.

 

What the Paris Agreement means for carbon markets

By affirming a role for carbon markets in international climate cooperation, the Paris Agreement recognizes the realities already on the ground, where emission trading systems are at work in over 50 jurisdictions home to nearly 1 billion people. When China adopts a national carbon trading system, beginning in 2017, that number will rise to 2 billion – almost a third of the world’s population.

Figure 1:  Existing, Emerging, and Potential Carbon Pricing Jurisdictions

And more than half of the world’s countries are using, or plan to use, carbon markets to stimulate the innovation and investment needed to meet their Paris climate pledges.

With the UN now blessing the growing use of bottom-up cooperation between jurisdictions to link their markets and spur greater efficiency, as California and Quebec have done, the challenge now becomes how to accelerate the transparent, high-integrity international cooperation needed to solve the Paris equation.  That cooperation – needed both inside and outside the UNFCCC – is the subject of my next post.

Also posted in Emissions trading & markets, Paris| Leave a comment

What the Paris Agreement's references to indigenous peoples mean

By: Chris Meyer, Environmental Defense Fund, and Estebancio Castro, Independent Indigenous Leader

paris_indigenous

The Paris Agreement makes five explicit references to indigenous peoples, their rights, and their traditional knowledge. Above: A report launched at a December 2015 press conference in Paris found indigenous territories hold one-fifth of the world’s tropical forest carbon. Credit: Environmental Defense Fund

Indigenous peoples are particularly vulnerable to the effects of climate change, but they can also play a crucial role in stabilizing the climate. Though the 1997 Kyoto Protocol didn’t include a single reference to indigenous peoples, the Paris Agreement– though not perfect – made some great strides.

The Paris Agreement and implementing decisions include:

  • five explicit references to indigenous peoples, their rights, and their traditional knowledge. These appear in the preambles of both the Paris Agreement and the Decision text, and in specific topic areas of the exchange of experiences and adaptation.
  • a reference to a topic important to indigenous peoples, non-carbon benefits in relation to Reducing Emissions from Deforestation and Degradation (REDD+).

Importantly, the references to indigenous peoples in the preamble to the Paris Agreement, and repeated in the preamble to the Decision text, say that countries need to respect indigenous peoples’ rights when taking action to address climate change. It’s significant that this rights language is included in the preambles, as it ensures these rights will be part of the framing of the whole agreement and implementing decisions.

The Paris Agreement and its Decision texts contain important references to indigenous peoples' rights that can help drive change at the country levels, where it is most needed.

The other references to indigenous peoples discuss the need to include them in the exchange of knowledge, especially considering the topic of adaptation. As they are one of the more vulnerable groups, they will need access to more western knowledge to support their own indigenous knowledge about how to adapt to climate change and protect their livelihoods. Additionally, the Paris Agreement recognizes indigenous peoples' “traditional knowledge” as an asset for helping themselves – and their neighbors – adapt.

Indigenous peoples for many years advocated strongly for the consideration of non-carbon benefits as a part of REDD+, including through a number of formal submissions to the process. The inclusion of explicit language in the REDD+ article to promote non-carbon benefits reflects their efforts and the importance of the topic.

The Paris Agreement and its Decision text aren’t perfect, and though some may have wished to see a greater number of specific references to these rights in the text, the Paris outcome was kept intentionally broad so it could be applicable to nearly 200 countries.

Regardless, we see important references to indigenous peoples' rights in the Paris Agreement and its Decision texts that, together with other international human rights instruments, can now be leveraged to drive change at the country levels, where it is most needed. That is the challenge in the years to come – to ensure indigenous peoples and their rights are adequately represented and respected in countries’ policies and actions they take to implement the Paris Agreement.

Additional resources:

Also posted in Indigenous peoples, Paris, REDD+| 1 Response

Report back from Paris: What the new climate deal means – and where we go from here

caption

Source: Flickr/ UNClimateChange

The United Nations climate agreement in Paris, and the intense negotiations leading up to it, were a breakthrough in a number of important ways.

First of all, the agreement represents the coming of age of climate diplomacy. It was evident from the beginning that French Foreign Minister Laurent Fabius, who chaired the talks, had the full trust and confidence of the room.

He artfully identified a zone of agreement among 196 delegations that gave nearly everyone something they wanted without crossing red lines.

The agreement was also the culmination of months of bilateral diplomacy at the highest levels, most visibly between the U.S. and China. The direct involvement of President Obama and other world leaders was critical to success – and shows a strategic savvy and leader-level involvement that we haven’t seen in past climate talks.

But it’s the language of the agreement itself, and the broad backing it received, that makes it such a big deal. It means that we now have a chance – not a guarantee, but a chance – to put the world on a healthier path.

Read More »

Also posted in Deforestation, Emissions trading & markets, News, Paris, REDD+| Leave a comment

Three cheers for REDD+ and forests in the Paris Climate Agreement

By Chris MeyerSenior Manager, Amazon Forest Policy and Dana Miller, Research Analyst

8031193947_1ca20c1d1c_b

The Paris Agreement sends a strong signal for the forest protection policy REDD+. Credit: Flickr/Dams999

The Paris Agreement was a historic moment for the world, including the world’s forests. Now it is time to implement the agreement. But first, let’s take a moment to celebrate three important wins for forests and the framework for Reducing Emissions from Deforestation and forest Degradation (REDD+).

1) Article 5 on REDD+ signals political support for the existing internationally agreed framework

The Paris Agreement included a specific provision (Article 5, below) on forests and REDD+. Experts from EDF, Conservation International, Forest Trends, National Wildlife Federation, The Nature Conservancy and Union of Concerned Scientists told press that this article “would send a strong political signal to support better protections for forests in developing countries and encourage developed nations to provide the financial incentives to do so.” This article also encourages “results-based payments”, which refers to a promising mechanism where donors pay for verified emissions reductions achieved through REDD+.

Read More »

Also posted in Deforestation, Forestry, Paris, REDD+| Leave a comment

Message from Paris: REDD+ Keeps Calm and Carries on

The REDD+ negotiators in Paris still have plenty of explicit and implicit references to REDD+ in the text that have a better-than-good chance of surviving this week.

While we would like to see an explicit reference to REDD+ in the Paris Agreement or its decisions that guide its implementation, what is most important for REDD+ is a good final Paris Agreement. That will provide the impetus for quicker implementation of REDD+ and the big, big signal some say it needs. This second week is when the ministers need to focus on delivering it.

The REDD+ negotiators have spent most of their time trying to unlock language around what some countries want to call the new “REDD+ Mechanism” (currently paragraph 3bis).

The COP21 climate negotiations on REDD+ made little progress last week – keep calm and see why here – while there was a flurry of announcements from countries regarding the implementation of REDD+.

Read More »

Also posted in Deforestation, Forestry, Paris, REDD+| Leave a comment

How carbon markets are driving deeper, faster pollution cuts in Paris climate pledges

Among the 170+ countries that have submitted their carbon-cutting plans — known as Intended Nationally Determined Contributions, or “INDCs” — more than half have either stated their intention to use international carbon markets to tackle carbon pollution, or are already employing them domestically. Image source: cropped INDC map from IETA's INDC Tracker

With only a few days before nations meet in Paris to negotiate an inclusive post-2020 structure for global climate cooperation under the UN Framework Convention on Climate Change (UNFCCC), we already know that the world will be entering a new paradigm of climate action, in which all nations play a role in the collective fight against climate change.

We also know that while the emissions reductions pledged for 2025 or 2030 by over 170 countries over the course of this year are significant, aggressive additional action well beyond 2030 will be necessary to meet the internationally agreed goal of limiting global average atmospheric warming to no more than 2 degrees Celsius, or 3.6 degrees Fahrenheit. That goal is the upper limit agreed by the international community, at a level that scientists believe would likely avoid the worst impacts of climate change.

Because the Paris pledges mark only the beginning of a new era of climate cooperation, it is imperative that an effective international climate agreement promotes greater and greater ambition as it matures. A successful Paris agreement can thus set the stage for the world to turn the corner on global emissions.

Even before they arrive in Paris, countries have started identifying effective tools that can be used to accelerate ambition over time, so that the UNFCCC’s objective – to “prevent dangerous anthropogenic interference with the climate system” – can be met.

Read More »

Also posted in Emissions trading & markets, Paris| Leave a comment
  • Get blog posts by email

    Subscribe via RSS

  • Categories