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.
Sustainable Development Initiative (SDI)
Promoting sustainable development (SD) is as an overarching objective of voluntary cooperation under Article 6 of the Paris Agreement. At the same…
Role of BMWK: Research funding
Lifecycle: since 2017
Implementation: UNEP CCC
Other Participants: Gold Standard Foundation
Contact: Karen Holm Olsen, karen.olsen@un.org
Partnership for Market Implementation
The World Bank activity promotes the establishment of a global carbon market and supports proactive countries in preparing and implementing innovative…
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2021
Implementation: World Bank
Further Information: https://pmiclimate.org/
Contact: Malin Ahlberg, malin.ahlberg@bmwk.bund.de
Strengthening the transformative effect of market approaches under the Paris Agreement
The project ‘Transformation & Article 6: Strengthening the transformative effect of market approaches under the Paris Agreement’ commissioned by UBA…
Role of BMWK: Research funding
Lifecycle: 2020-2021
Implementation: UNEP DTU Partnership, Perspectives Climate Research gGmbH and First Climate
Contact: Anne Götzinger, Anne.Goetzinger@uba.de
Potential for result-based payments in the forestry sector
In this project researchers examine current REDD+ financing models and discuss their relevance in the potential use of REDD+ carbon credits under the…
Role of BMWK: Research funding
Project lifecycle: 2020-2021
Implementation: Öko-Institut
Other participants: CIFOR
Contact: Hannes Böttcher, h.boettcher@oeko.de
LULUCF as a market mechanisms sector under Article 6
To investigate the potential inclusion of LULUCF under Article 6, the project team is analysing various regimes and policy instruments at a range of…
Role of BMWK: Research funding
Project lifecycle: 2019-2021
Implementation: Öko-Institut
Contact: Hannes Böttcher, h.boettcher@oeko.de
Future role for voluntary carbon markets in the Paris era
An increasing number of organisations and individuals take voluntary action to reduce their emissions and to offset those that remain. Against this…
Role of BMWK: Research funding
Lifecycle: 2019-2020
Implementation: NewClimate Institute
Other Organisations Involved: Lambert Schneider
Contact: Harry Fearnehough
h.fearnehough@newclimate.org
Operationalizing non-market approaches of the Paris Agreement
Commissioned by the German Environment Agency (UBA), the objective of this research project is the development of guidance for NMAs based on…
Role of BMWK: research funding
Lifecycle: 2019 - 2021
Implementation: Perspectives Climate Research gGmbH
Contact:Axel Michaelowa
michaelowa@perspectives.cc
Analysis of Advantages and Disadvantages of Offset Approaches in Selected Sectors
The research project explores how offset approaches can be made future-proof and aligned with the objectives of the Paris Agreement.
Role of BMWK: Research funding
Lifecycle: 2019 - 2021
Implementation: Wuppertal Institute for Climate, Environment and Energy
Other Organisations Involved: South Pole Carbon Asset Management Ltd.
Contact: Wolfgang Obergassel,
wolfgang.obergassel@wupperinst.org
Eastern Africa Alliance on Carbon Markets and Climate Finance
Through this activity, East African countries are seeking to promote sub-regional cooperation, thereby harnessing their mutual strengths in the areas…
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2019
Implementation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Other Organisations Involved: UNFCCC Regional Collaboration Center Kampala
Contact: Ritah Rukundo, ritah.rukundo@giz.de; UNFCCC Regional Collaboration Center Kampala, RCCKampala@unfccc.int
The 'Innovate4Climate' is a networking and information exchange format related to carbon markets and raising mitigation ambition worldwide.
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2019
Implementation: World Bank
Further Information: http://innovate4climate.com
Contact: Rachel Pekker rachel.pekker.extern@bmwk.bund.de
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