Supporting NDC Implementation Through Market and Non-Market Based Approaches: Carbon Pricing, and More Noim Uddin, PhD 6 September 2016 Asia Pacific Carbon Forum, Jeju Island, Republic of Korea

Carbon pricing mechanism – scientific basis Effective adaptation and mitigation responses will depend on policies and measures across multiple scales: international, regional, national and sub-national. Policies across all scales supporting technology development, diffusion and transfer, as well as finance for responses to climate change, can complement and enhance the effectiveness of policies that directly promote adaptation and mitigation Source: Section SPM 4.4 page 29, Summary for Policy Maker, Synthesis Report, Climate Change 2014, IPCC Mechanisms that set a carbon price, including cap and trade systems and carbon taxes, can achieve mitigation in a cost-effective way but have been implemented with diverse effects due in part to national circumstances as well as policy design. Source: Section SPM 4.4 page 30, Summary for Policy Maker, Synthesis Report, Climate Change 2014, IPCC

Market, Non-Market and Mechanism in the Paris Agreement Not using ‘market’ in the Paris Agreement texts instead contain ‘mechanism’ in the Paris Agreement texts While no mention of ‘market’ in the Paris Agreement texts, reference is given on ‘non-market’ (appeared 5 times in the Paris Agreement and its decision texts) Article 6.4 contains a guidance towards designing a mechanism Cooperative Approaches (Article 6.2) and Non-market approaches (Article 6.8) require further thinking on design, requirements and elements

Article 6 of the Paris Agreement – early concerns Paris Agreement appears to include a mix of top-down and bottom-up regimes Article 6.2: Cooperative Approaches (internationally transferred mitigation outcomes) – country driven or countries driven or market driven? Opportunity for regional cooperation? Effort based or result-based? Accounting and MRV? Article 6.4: Mechanism – governance (centralized or decentralized or country driven), possibility to adopt positive experience from existing mechanism or mechanism currently being developed. Article 6.8: Non-market approaches – defining non-market (non result-based?); facilitating co-benefit approaches; increase the effectiveness of policies in meeting multiple objectives and strengthen the political will to act. Where does CDM best fit?

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