Collaborative Instruments for Ambitious Climate Action (CI-ACA)

Background and Objective

Collaborative Instruments for Ambitious Climate Action (CI-ACA) is an initiative implemented by the UNFCCC through its Regional Collaboration Centres (RCCs). The initiative launched at COP22 in Marrakech in 2016 is supported by voluntary contributions from a number of national governments, including the German Federal Government through the German Federal Ministry for Economic Affairs and Climate Action (BMWK). It assists countries in the development of domestic climate policies instruments such as carbon markets, carbon taxes, and other emission reduction instruments with strong monitoring, reporting and verification components.

Implementation

CI-ACA offers tailored support to jurisdictions in developing carbon pricing instruments, covering the entire process from identification of possible policy options, as well as development of concrete proposals for use in instrument development and design, all the way to instrument roll-out on the ground. CI-ACA implements these activities in numerous countries, including Senegal and Uganda. 

In Senegal, CI-ACA is exploring the potential for introducing carbon pricing policies and a study has been prepared that evaluates various options for the introduction of domestic carbon pricing instruments. A national consultation process identified the most relevant instruments for the prioritized sectors. The consultation process resulted in the identification of a carbon tax as the preferred pricing instrument for Senegal. Building on the study’s findings, the initiative is developing an action plan. Following an evaluation and further development of the action plan with key stakeholders, on the ground support will be provided for the advancement and deployment of the carbon pricing instruments in Senegal.

A study has also been prepared for Uganda to evaluate existing carbon pricing instruments, including CO₂ taxes, emissions trading schemes and hybrid systems such as the one in South Africa. The study was conducted by the Regional Collaboration Centre Uganda and supported by the team of the Global Carbon Market Project in Uganda. The report 'Study on cooperative MRV as a foundation for a potential regional carbon market within ASEAN - Synthesis Report' was published in May 2019. As part of this initiative, RCC Kampala (with the support of the Global Carbon Market Uganda team)  conducted a carbon pricing study which includes a broader assessment of the current carbon pricing mechanisms such as carbon tax and cap-and-trade, as well as a hybrid system such as the South African system. The report ‚Study on cooperative MRV as a foundation for a potential regional carbon market within ASEAN - Synthesis Report‘ was published in May 2019.
 

Milestones and Outlook

During the first project phase from 2017 to 2018, CI-ACA worked with a total of 18 jurisdictions to promote carbon pricing. In addition to promoting carbon pricing approaches at national level, the initiative also provided support for cooperation at regional level. In a second project period from 2019-2021, the existing cooperation will be further deepened and expanded. Partner countries already supported by CI-ACA will receive further support in the introduction and implementation of concrete policy instruments. The inclusion of new partner countries is intended to further increase CI-ACA's reach. This will be complemented by further measures to promote cooperation at the regional level.