Transcript TITLE HEADER - Latin American Carbon Forum

Ongoing discussions on the formulation of
National Appropriate Mitigation Actions
(NAMAs) and their possible inclusion as
market mechanisms in a post-2012 regime
Latin American Carbon Forum
San Jose, Costa Rica, 27 - 29 September 2011
William Kojo-Agyemang Bonsu, Manager, Non-Annex I Support
Outline
 Background
 Definition of NAMA
 Types of NAMAs
 Evolution of NAMA concept
 Credited NAMAs
 Conclusions
Definition of NAMAs
 NAMAs are any nationally appropriate mitigation actions of developing
country Parties, undertaken in the context of sustainable development and
to reduce their emissions from business-as-usual (BAU) levels;
 NAMAs that developing country Parties submitted to the UNFCCC
secretariat are contained in document FCCC/AWGLCA/2011/INF.1
http://unfccc.int/resource/docs/2011/awglca14/eng/inf01.pdf
 The submissions show that NAMAs can be policies, programmes and
projects:
 Energy efficiency and renewable energy measures/certificates;
 Cap and trade schemes;
 Intensity targets;
 Financial instruments;
 Technology standards
 R&D
 Some Parties emphasised the use of existing and new market mechanisms as
important for implementation of their mitigation actions.
Types of NAMAs
 Autonomous/Unilateral/domestically funded NAMAs

Actions implemented with national resources and without external support
 Supported NAMAs

Actions enabled and implemented with finance, technology and capacity building
support provided by developed country Parties
 [Credited NAMAs] – still under discussion

Actions implemented with intension of generating credits to participate in carbon
market(s).
 Co-benefits
•
Energy security
•
Health benefits
•
Sustainable development
Evolution of NAMA concept
 By its Decision 1/CP.13 COP launched a process to discuss NAMAs;
 By its Decision 2/CP.15, the COP took note of the Copenhagen Accord
which states that the Non-Annex I Parties will implement mitigation
actions, including those to be submitted to the secretariat contained in
the aforementioned INF doc;
 The Cancun agreements brought together the building blocks and
important elements required for undertaking NAMAs mainly:
 Facilitation of support for NAMAs seeking support through the
Registry
 Enhanced reporting
 MRV of action and support
 International consultation and analysis (ICA)
Credited NAMAs
 Discussions on inclusion of NAMAs in the future market mechanisms are
on-going
 The international architecture for the post 2012 period uncertain at the
moment
 In the past discussions have included:
 Credit generating NAMAs are actions undertaken over and above those
that are domestically funded and those internationally supported, based
on emission reduction targets and may be eligible for emission trading
schemes
 NAMA crediting procedures?
 Length of the crediting interval,
 cumulative crediting, and
 Effects of supported NAMAs on crediting baselines
NAMAs and market mechanisms
 Credit-generating NAMAs could generate CERs/offsets for developed
countries just as CDM does.
 Sector-wide mitigation programs would be one type of credit-generating
NAMA. Under these programs, developing countries may need to set
baselines or reference levels in absolute emissions or emission
intensity terms in one or more sectors;
 Market-based mechanisms integrated into the NAMA framework will
encourage further mitigation actions in developing countries by offering
access to the carbon market and potentially larger financial flows;
promote cost effective global mitigation; and allow flexibility to parties in
meeting their commitments.
NAMAs and market mechanisms
• The COP at its sixteenth session decided to consider the establishment, at
its seventeenth session, of one or more market-based mechanisms to
enhance the cost-effectiveness of, and to promote, mitigation actions,
taking into account the following:
a) Ensuring voluntary participation of Parties, supported by the promotion of fair and
equitable access for all Parties;
b) Complementing other means of support for nationally appropriate mitigation actions
by developing country Parties;
c)
Stimulating mitigation across broad segments of the economy;
d) Safeguarding environmental integrity;
e) Ensuring a net decrease and/or avoidance of global greenhouse gas emissions;
f)
Assisting developed country Parties to meet part of their mitigation targets, while
ensuring that the use of such mechanism or mechanisms is supplemental to domestic
mitigation efforts;
g) Ensuring good governance and robust market functioning and regulation;
Conclusion
• COP 17 may provide further guidance, substantive or process, on what will
constitute the modalities and procedures for the NAMA and other market
mechanisms.
• It is very speculative at this stage but the following elements may be
discussed:
a) Definition of basic forms: trading and crediting
b) Rules for definition of sectors and coverage of gases
c) Methods and criteria for calculating baselines
d) Methods and criteria determining crediting thresholds and sector targets
e) Length of crediting/trading period
f)
Provisions for measurement, reporting and verification of emissions
g) Provisions for issuance of units
h) Accreditation standard for validators and verifiers
Thank you
William Kojo Agyemang-Bonsu
[email protected]