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.
Carbon Market Mechanisms Working Group
The CMM-WG provides a platform for dialogue, thus enabling exchange of experience and coordination of measures to support the role of programmatic and…
Role of BMWK: BMWK-financed
Lifecycle: since 2019
Implementation: Perspectives Climate Group
Further information: https://www.perspectives.cc/public/initiatives/carbon-market-mechanisms-working-group/
Contact: Stephan Hoch, hoch@perspectives.cc
The 'Regional Climate Weeks' 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 2018
Implementation: Nairobi Framework Partnership
Further Information: www.unfccc.int
Contact: Rachel Pekker rachel.pekker.extern@bmwk.bund.de
The research project deals with all aspects of the market mechanisms of the carbon market as well as with the general aspects of the cooperative…
Role of BMWK: BMWK-financed
Lifecycle: 2018 - 2021
Implementation: Wuppertal Institute for Climate, Environment and Energy
Further Information: www.carbon-mechanisms.de/en/
Contact: Christof Arens, carbon_mechanisms@wupperinst.org
The activity assists public descion-makers in developing new market-based climate change instruments and in taking advantage of the opportunities that…
Role of BMWK: Co-financed by BMWK
Lifecycle: 2018 - 2022
Implementation: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Other Organisations Involved: Uganda: Climate Change Department of the Uganda Ministry of Water and Environment, Indien: Ministry of Environment, Forests and Climate Change, Chile: Ministerio de Energia, Tunesien: L‘Agence Nationale pour la Maîtrise de l’Energie
The project develops climate financing models in Ethiopia, Senegal and Uganda and formulates GCF proposals designed to contribute to the respective…
Role of BMWK: Co-financed by BMWK
Lifecycle: 2018 - 2023
Implementation: Perspectives Climate Group
Other Organisations Involved: Climate Focus, AERA Group, Carbon Mitigation Limited, Afrique Energie Environnement (AEE) & South South North
Further Information: www.climatefinanceinnovators.com
Contact: Stephan Hoch, hoch@perspectives.cc
Collaborative Instruments for Ambitious Climate Action (CI-ACA)
The aim of the activity is to support countries that rely heavily on monitoring, reporting and verification in establishing their national climate…
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2017
Implementation: UNFCCC Secretariat and Regional Collaboration Centres Lomé and Kampala
Other Organisations Involved: In Senegal: Perspectives Climate Research gGmbH (PCR); Afrique Energy Environnement (AEE); Department of Environment and Classified Establishments (DECC) Senegal; National Committee on Climate Change (COMNAC). In Uganda: Global Carbon Market Uganda implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH UNFCCC Regional Collaboration Center Kampala
Further Information: https://unfccc.int/about-us/regional-collaboration-centres/the-collaborative-instruments-for-ambitious-climate-action-ci-aca-initiative
Contact: Monique Nardi, mnardi@unfccc.int
West African Alliance for Carbon Markets and Climate Finance
The alliance establishes a long-term structure to promote carbon markets and results-based climate finance in West Africa.
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2017
Implementation: West African Development Bank (BOAD)
Other Organisations Involved: UNFCCC-RCC Lomé, ENDA Energie Dakar, Climate Focusa
Further Information: www.westafricaclimatealliance.org
Contact: Alliance Secretariat, westafricaclimatealliance@gmail.com
Designing the New Global Market Mechanism
The project assessed options for implementing the new market mechanism and developed regulatory recommendations.
Role of BMWK: Research funding
Lifecycle: 2017 - 2020
Implementation: Wuppertal Institute for Climate, Environment and Energy
Other Organisations Involved: INFRAS, Fraunhofer Institut für System- und Innovationsforschung ISI
Contact: Wolfgang Obergassel, wolfgang.obergassel@wupperinst.org
Analysis and Evaluation of the CORSIA Offsetting Mechanism for use in International Aviation
Overall, the activity funded by the Federal Environment Agency is intended to support the negotiation activities for the design of CORSIA (Carbon…
Role of BWKU: Research funding
Lifecycle: 2017 - 2019
Implementation: Öko-Institut e.V.
Other Organisations Involved: Stockholm Environment Institute, NewClimate Institute
Contact: Lambert Schneider, lambertschneider@googlemail.com
The research project updated an existing standardized baseline with new data.
Role of BMWK: Co-financed by BMWK
Lifecycle: 2016 - 2018
Implementation: GFA Consulting Group
Contact: Martin Burian, martin.burian@gfa-group.de
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