The Paris Agreement provides a much-needed long-term perspective for the global carbon market. Nonetheless, some of the rules for using the new mechanisms have yet to be finalised and practical experience in their application has still to be gained.
The Federal Ministry for Economic Affairs and Climate Action (BMWK) is thus working to push these developments and to ensure that progress is made in the international climate negotiations. BMWK also promotes the further development and design of the mechanisms by commissioning corresponding research and also invests in practical testing of innovative approaches in the form of pilot projects.
This covers, inter alia, work on design options for Art. 6.4 in general, on upscaled crediting under Article 6, or ensuring a robust and environmentally sound CORSIA Offsetting Mechanism for use in International Aviation. As regards Carbon Market innovations, BMWK supports the linkage of market mechanisms and climate finance, especially in Africa, which has been underrepresented in the global Carbon Market so far.
Further activities in this field comprise auctioning approaches to ensure continuation of mitigation activities, support for driving the transformation of the nitric acid sector, or piloting transformative carbon finance. Initiatives to promote carbon pricing through capacity development and information exchange round off BMWK’s portfolio of Carbon Market-related activities.
In this section, the broad portfolio of different BMWK activities is presented.
Mobilising the Article 6.4 project pipeline
COP29 in Baku effectively operationalized the Paris Agreement Crediting Mechanism (PACM). In 2025, the PACM is expected to become fully operational…
Role of BMWK: BMWK-financed
Lifecycle: 2024-2026
Implementation: Climate Focus, Perspectives Climate Research
Further information: n/a
Contact:
Sandra Greiner s.greiner@climatefocus.com,
Anna Kovács a.kovacs@climatefocus.com,
Stephan Hoch hoch@perspectives.cc,
Juliana Kessler kessler@perspectives.cc
Enabling National Ownership in a High-Integrity Global Carbon Market
In recent times, there has been an emergence of new regulations or frameworks governing carbon market activities in multiple jurisdictions.…
Role of BMWK: BMWK-financed
Lifecycle: 2023 - 2025
Implementation: The Gold Standard Foundation
Other Organisations Involved: n/a
Further Information: Gold Standard Website
Contakt: Hugh Salway, hugh.salway@goldstandard.org
Implementing ambitious voluntary action under the Paris Agreement
There has never before been as much corporate interest to invest in climate mitigation as we see today, both within and beyond companies’ value…
Role of BMU: BMWK-financed
Lifecycle: 2022 - 2023
Implementation: The Gold Standard Foundation
Other Organisations Involved: Perspectives Climate Group GmbH, adelphi consult GmbH, AGS Carbon Advisory
Further Information: Gold Standard Website
Contact: Hugh Salway, hugh.salway@goldstandard.org
Groundwork for the Establishment of a Label for Domestic Compensation of Greenhouse Gases
The market for voluntary offsetting of greenhouse gas emissions in Germany is growing rapidly. More and more organizations, in particular companies,…
Role of BMWK: BMWK-financed
Lifecycle: 2022 - 2024
Implementation: Adelphi research, Wuppertal Institute
Other Organisations Involved: -
Further Information: wupperinst.org/p/wi/p/s/pd/2164
Contact: Nicolas Kreibich, nico.kreibich@wupperinst.org
Supporting Preparedness for Article 6 Cooperation (SPAR6C)
Many developing and emerging economies are interested in participating in voluntary cooperation as permitted under Article 6 of the Paris Agreement.…
Role of BMWK: Funding through International Climate Initiative (IKI)
Lifecycle: 2022-2027
Implementation: Global Green Growth Institute (GGGI)
Other Organisations Involved: UNEP-Copenhagen Climate Center (UNEPCCC), Carbon Limits, GFA Consulting GmbH, Kommunalkredit Public Consulting (KPC)
Contact: Marshall Brown, Marshall.brown@gggi.org
Cooling Program for Southern Africa (CooPSA)
The programme will develop an implementation-ready support programme that prepares for the introduction of Green ACs in Botswana, Eswatini, Namibia…
Role of BMWK: BMWK-financed
Lifecycle: 2021 – 2022
Implementation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, GFA Consulting Group
Other Organisations involved: Ministries of Environment (Climate and Ozone units), Ministries of Energy, refrigeration sector
Contakt: Philipp Denzinger, philipp.denzinger@giz.de and Joachim Schnurr, joachim.schnurr@gfa-group.de
Background and Objective
With the adoption of the Paris Agreement and the market mechanisms enshrined in Article 6, the international community faces…
Role of BMWK: BMWK-financed
Lifecycle: 2021 – 2026
Implementation: Wuppertal Institute for Climate Environment and Energy
More Information: https://www.carbon-mechanisms.de/en
Contakt: Christof Arens, carbon_mechanisms@wupperinst.org
International Market-Based Approaches for Raising Climate Ambition
In this project, the project team is investigating the conditions under which Germany can make targeted use of cooperative approaches. In addition, a…
Role of BMWK: Research funding
Lifecycle: 2021-2023
Implementation: Wuppertal Institute for Climate Environment and Energy
Other Participants: GFA Consulting Group GmbH
Contact: Nicolas Kreibich, nico.kreibich@wupperinst.org
The project focuses on conceptualising an innovative framework for potential urban Article 6 projects in two African cities: Addis Ababa (Ethiopia)…
Role of the BMWK: Research funding
Lifecycle: April 2021 – April 2022
Implementation: Perspectives Climate Group and ICLEI
Contact: Sonja Butzengeiger, butzengeiger@perspectives.cc
Climate and Ozone Protection Alliance for ODS and HFC Banks Management (COPA)
GIZ’s COPA project aims to position the correct disposal of old refrigerators and air conditioning units in the international arena as a…
Role of BMWK: BMWK-financed
Project period: 2021 – 2024
Implementation: Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH
Other Organisations Involved: Ministries, refrigeration sector, operators of ODS/HFC destruction facilities, UNIDO, UNDP
Further Information: Climate and Ozone Protection Alliance - COPA (copalliance.org)
Contact: Ellen Michel, Ellen.Michel@giz.de
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