The EU climate framework post the Paris Agreement Western Balkans Climate Resilience Workshop, Vienna, May 2016 Ivana Mijatovic Cernos DG Climate Action

The Paris Agreement

Outline 1.Paris Agreement and its global impacts 2.Adaptation in the Paris Agreement 3.EU response: The 2030 climate and energy framework 4.EU Adaptation Strategy and way ahead 5.Implications for Accession Countries

Climate Action The Paris Agreement Universal legal agreement Long-term goal 5-year ambition cycle Transparency, accountability and compliance International cooperation

Climate Action An ambitious Agreement A long-term goal to hold temperature increase to well below 2 0 C, and pursue efforts to limit to C Global emissions to peak as soon as possible, net zero emissions in the second half of the Century Legally binding obligations to maintain successive targets and to pursue domestic mitigation measures – 189 countries have submitted their plans A global stocktake every five years starting in 2018 with increased ambition over time

Climate Action Global stocktake Commitments Facilitative dialogue on emissions reductions New science on 1.5°C New or updated contributions by 2020 First global stocktake To consider progress on global goals for low- emission and climate-resilient development – and financing Stocktake every 5 years After 2030, all to communicate new emissions reductions contributions every 5 years Progression on previous efforts

Climate Action A transparent Agreement All Parties must account for their contributions – track progress on targets Methodologies and common metrics will apply Enhanced transparency and accountability framework, with biennial reporting and expert review No double counting : essential for linking of emission trading systems

Climate Action A fair Agreement Support for vulnerable countries Goal of mobilising $100bn per year extended to 2025, new goal to be set before 2025 widening the donor base Capacity building and technology transfer for developing countries ; support for monitoring, reporting and verification Adaptation at political par; Loss and Damage for the first time part of an international agreement

Climate Action Adaptation in the Paris Agreement Ambition Long-term goal on adaptation 5-year ambition cycle: A global stocktake every five years starting in 2018 with increased ambition over time, which also applies to adaptation Transparency Enhanced transparency and accountability, including for adaptation action and support given and received Fairness Adaptation at political par with mitigation Loss and damage Support for developing countries, including finance 9

Climate Action The 2030 Agenda for Sustainable Development Not legally binding, but universally apply to all Climate change in the agenda and the SDGs: 10 Resilience fully mainstreamed: 12 SDGs directly involve taking action on climate change Goal 13: Take urgent action to combat climate change and its impacts

Climate Action Successful INDC process before Paris Aggregate global emissions: UNFCCC Synthesis report UNEP Gap report INDC more than numbers: IEA World Energy Outlook: decoupling MILES IDDRI report: air pollution, energy security benefits JRC Global Energy and Climate Outlook Parties with INDCs covering periods up to 2030 invited to communicate or update by 2020, following a 2018 facilitative dialogue => INDCs from 189 Parties Ambition

Climate Action Impact of INDCs on global emissions Source: EC-JRC

Climate Action INDCs : References to carbon tax, ETS and International market mechanisms Planned / possible use of int'al market mechanisms No specific references or no INDC yet Domestic ETS and carbon taxes Ref. in INDCs to: Adapted from WRI-CAIT 13

Climate Action Next steps COM presented assessment to the Council on COP21 in March, in view of 2030 climate and energy framework April 22: High-level signatory ceremony in April November-December : COP22 in Marrakech to deliver and elaborate on implementation As of now : start implementing INDCs

Climate Action What does Paris mean for the 2030 package? EU targets for 2030 target already reflect action needed to stay below 2 degrees Celsius 2018 global stocktake will assess need for further global action, based on past performance and new science By 2020, submission of a mid-century emission reduction strategy 2020, communicate or update existing NDC 2023, global stocktake 2025, communicate or update existing NDC ….

Climate Action 2015 : Action on EU ETS May Market Stability Reserve adopted will boost confidence and step-be-step neutralise the market surplus July EU ETS revision proposed a first crucial step for implementing the 2030 climate and energy framework November carbon market report new annual reporting exercise; finds that EU ETS carbon price incentivises cost-effective emission reductions, motivates business and help bring innovative technologies to the marketplace

Climate Action 2016 : on EU ETS : key elements for negotiation in Council and Parliament Carbon leakage Innovation fund Modernisation fund Transitional free allocation to power sector in lower income Member States

Climate Action 2016 : Commission to propose implementation of EU INDCs Sectors outside the ETS: households, transport, agriculture and land use, land use change and forestry Strategy for the decarbonisation of transport Energy efficiency Electricity market design Renewables (including biomass, biofuels) Integrated climate and energy governance

Climate Action Implications for adaptation in the EU… The PA create a new vision and new opportunities for adaptation: "Soft binding" obligation for planning process and implementation of actions Adaptation efforts to become more ambitious over time, and part of the Global Stocktake 19 EU to review progress in implementing the 2013 Adaptation Strategy in 2017 focusing on 8 action areas Possible 2018 reinforced strategy showing proactivity on adaptation from the EU

Climate Action Encourage MS to adopt strategies and action plans  by 2017 By 2016, 21 MS have adopted national strategies/plans Measure MS' level of readiness  adaptation scoreboard The EU Adaptation Strategy: Promoting action by member States

Climate Action Bridge the knowledge gap State of knowledge on ecosystem based adaptation, infrastructure, and vulnerability assessment Sectoral community of practice (forest, water-energy, finance and insurance) Insurance study Further develop Climate-ADAPT as the ‘one-stop shop’ for adaptation information in Europe The EU Adaptation Strategy: Better informed decision making Portal for Members States action, sectors and projects adapt.eea.europa.eu/

Climate Action Mainstreaming in EU Budget At least 20% of ESIF climate related Horizon 2020: 35% climate related External action: At least 20% climate-related Climate-dedicated initiatives, e.g. GCCA+ Standards 'Climate proofing' of projects, Promoting climate change adaptation, risk prevention and management - DRR The EU Adaptation Strategy: Mainstreaming in funds and policies

Climate Action The crucial role of non-state actors 23 The PA recognises the role of non-Party stakeholders, including cities and other subnational authorities. They are invited to: scale up their efforts; build resilience and decrease vulnerability; uphold and promote regional and international cooperation. The new Covenant of Mayor major role to play in stepping up pre2020 ambitions at local level

Climate Action The new Covenant of Mayors Decarbonisation Resilience Secure, sustainable and affordable energy

Climate Action 25 Increasing resilience across the whole EU territory: all MS and local authorities need an adaptation strategy Speeding up implementation of adaptation action Additional mainstreaming needed (energy, agriculture, transport, health) Engaging the private sector and business in adaptation Dealing with potentially much more significant climate impacts Adaptation in the EU – challenges ahead

Climate Action Implications for Accession Countries Each party shall prepare, communicate and maintain contributions All Parties shall pursue domestic measures to achieve reductions Candidates are urged to design their climate (and energy) action plans in line with EU 2030 framework for climate and energy policies

Climate Action Implications for Accession Countries CLIMA has secured 500,000 EUR from IPA 2016 programming for a bridging action to assist with implementation of the Paris Climate Agreement Follow up to ECRAN will be financed from IPA 2017 as a multi-annual regional climate project

Climate Action Thank you ! 28 Please visit us :