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.
The activity was launched in 2015 under the German G7 Presidency to strengthen international cooperation on market-based climate policy.
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2015
Further Information: https://www.oecd.org/environment/cc/carbon-market-platform/
Contact: Malin Ahlberg, malin.ahlberg@bmwk.bund.de
Nitric Acid Climate Action Group
The activity has set itself the ambitious goal of stopping nitrous oxide emissions from nitric acid production worldwide by 2020.
Role of BMWK: BMWK-financed
Lifecycle: 2015 - 2022
Implementation: Deutsche Gesellschaft für internationale Zusammenarbeit (GIZ) GmbH
Other Organisations Involved: Ministries and operators of nitric acid plants in the partner countries
Further Information: www.nitricacidaction.org
Contact: Enrico Rubertus, project coordinator, NACAG-Secretariat, enrico.rubertus@giz.de
Pilot Auction Facility for Methane and Climate Change Mitigation (PAF)
The activity's aim is to buy CERs from projects at guaranteed prices, which due to the low prices for emission certificates are at risk of being…
Role of BMWK: Co-financed by BMWK
Lifecycle: since 2015
Implementation: World Bank
Further Information: www.pilotauctionfacility.org
Contact: Thomas Forth, thomas.forth.extern@bmwk.bund.de
Achieving Ambitious Emissions through Carbon Pricing in Developing Countries
Conceptual study for a market-compatible approach for mitigation action in the Colombian building sectors.
Role of BMU: Research funding
Lifecycle: 2015 - 2019
Implementation: NewClimate Institute
Other Organisations Involved: Öko-Institut e.V.
Contact: Aki Kachi, a.kachi@newclimate.org
Analysis of Current Developments in the Global Carbon Market
The main aim of the activity was to analyse both the current situation and the potential for existing and new climate change mitigation activities…
Role of BMU: Research funding
Lifecycle: 2015 - 2018
Implementation: NewClimate Institute
Other Organisations Involved: Öko-Inistut e.V., Lambert Schneider (SEI Associate)
Contact: Thomas Day, t.day@newclimate.org
Analysing the interactions between new market mechanisms and emissions trading schemes
The project examined the development of emissions trading systems worldwide and their interaction with international market instruments.
Contact: Dennis Tänzler, taenzler@adelphi.de
Strengthening the African CDM Pipeline
The aim of the activity was to identify and test ways to enable Africa’s CDM capacity to be used in the medium term and for it subsequently to be…
Role of BMU: Research funding
Lifecycle: 2015 - 2017
Implementation: Climate Focus, B. V.
Other Organisations Involved: Perspectives Climate Group, AERA Group
Further Information: Climate Focus
Contact: Sandra Greiner, s.greiner@climatefocus.com
Carbon Neutral Business Trips of the Federal Government
The activity offsets the greenhouse gas emissions from business travel conducted by employees of ministries and subordinate national authorities.
Role of BMWK: BMWK-financed
Lifecycle: since 2014
Implementation: Federal Environment Agency
Other Organisations Involved: German Federal Government
Further Information: Website of the German Environment Agency
Contact: Frank Wolke, german.dna.dfp@uba.de
Analysing the status quo of CDM projects
The research project looked at the question of what happened to the CDM projects that failed to make it into the CDM project cycle or left it…
Role of BMU: Research funding
Lifecycle: 2013 - 2015
Implementation: NewClimate Institute
Other Organisations Involved: Ecofys Germany
Further Information: NewClimate
Contact: Carsten Warnecke, c.warnecke@newclimate.org
It was the research project's purpose to support the further development of standardised baselines and their use and benefits for LDCs.
Role of BMU: Research funding
Lifecycle: 2013 - 2014
Implementation: Wuppertal Institute for Climate, Environment and Energy
Other organisations involved: GFA Consulting Group
Contact: Christof Arens, christof.arens@wupperinst.org
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