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BMWK Activities

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.

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Global Carbon Market

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

Climate Finance Innovators

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

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

Updating the Emission Factor of the SAPP SB and development of a financing mechanism for renewable energy

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

Development of Models for Implementing New or Transforming Existing Market Mechanisms into a New UNFCCC Climate Agreement

The research project dealt with questions of the transition from the world of Kyoto mechanisms to the new international regime of the Paris Agreement.…

Role of BMWK: Research funding

Lifecycle: 2016 - 2018

Implementation: Öko-Institut e.V.

Other Organisations Involved: Stockholm Environment Institute, INFRAS AG

Contact: Jakob Graichen, j.graichen@oeko.de

Carbon Pricing Leadership Coalition

In 2015, the World Bank established the Carbon Pricing Leadership Coalition (CPLC) with the aim of further advancing carbon pricing.

 

Role of BMWK: Co-financed by BMWK

Lifecycle: since 2015

Implementation: World Bank

Further Information: www.carbonpricingleadership.org 

Transformative Carbon Asset Facility (TCAF)

The activity supports developing countries in establishing and implementing market-based climate change mitigation mechanisms by providing…

Role of BMWK: Co-financed by BMWK

Lifecycle: since 2015

Implementation: World Bank

Further Information: www.tcaf.worldbank.org

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