7th December, 4.30-6.00 pm, IETA BusinessHub
This side event saw the official launch of the Article 6 Support Facility for the Asian Pacific Region, which is funded by the ADB, the Government of Germany, and the Swedish Energy Agency. The Facility will provide capacity building as well as technical and policy development support to ADB’s developing member countries to help them identify, develop and pilot mitigation actions under the framework of Article 6 of the Paris Agreement.
Karsten Sach, BMU, highlighted the need for such a facility. He described the consequences of the clear cut to the CDM, which requires a completely new mind set for all Parties, intending to use new market mechanisms voluntarily under Article 6. As of today, most implementing countries find themselves in a dilemma concerning the development of measures, programmes or policies under Art. 6:
“The best elaborated policies and measures are those, which a country can perform on its own. [These are the fundament of the unconditional part of the NDCs.] By contrast, the mitigation potentials that could be used for transfers and ambition raising under Art. 6 are usually mentioned in the conditional NDCs only in a very general manner. In most implementing countries, the entry points for international cooperation are not yet identified. When mentioning Carbon Markets in conditional NDCs, drafting often seems to have been based on the CDM mind set. Therefore, it is understandable that further deliberations on the embedding in the national low emission strategies has been not carried out on a level, which in turn will be needed very soon.”
Through the facility, ADB will encourage innovation in the development of mitigation actions, contribute to achieving a critical mass of expertise, draw lessons from pilot activities, and enhance developing member countries’ ability to contribute to international negotiations and their preparedness to operationalize Article 6.
5th December, 12.30-14.00 pm, IETA BusinessHub
This side event discussed ways to foster further development and use of programmatic approaches in market mechanisms in the context of transitioning from the Kyoto to the Paris world. Speakers included Axel Michaelowa, Perspectives Climate Group, Hanna-Mari Ahonen, Finland, Urs Brodmann, First Climate, and Virender Duggal, Asian Development Bank. The event was moderated by Malin Ahlberg, BMU. The discussion revolved around conducive policy frameworks and suitable financing arrangements, as well as preconditions and minimum requirements for pilot initiatives.
Axel Michaelowa (Perspectives) Lessons from the Foundation for programmatic approaches
4th December; 3.30-5.00 pm, German Pavilion
This side event discussed regional carbon pricing initiatives, which are spreading across the globe. Such coordinated policies have the potential of building trust between countries and businesses, reducing carbon leakage, safeguarding environmental integrity, and increasing economic advantages of climate policy instruments. Good examples are the initiatives “Carbon Pricing in the Americas” and the “West African Alliance on Carbon Markets and Pricing”. Panelists included Patricia Fuller, Climate Change Ambassador, Canada, Hiroshi Ono, DG Ministry of Environment JPN, Ousmane Fall Sarr, Coordinator of the West African Alliance on Carbon Markets, Climate Finance, SEN, and Karsten Sach, DG Federal Ministry for the Environment, GER. The panel, moderated by Simon Buckle, Head of Climate, Biodiversity and Water Division, OECD, discussed what is needed to intensify and strengthen coordination efforts with the aim of gathering input for the newly established working group of the Carbon Market Platform on this issue.
Patricia Fuller (Canada) Carbon Pricing: A Canadian Perspective
Hiroshi Ono (Japan) The Joint Crediting Mechanism