Panel Discussion on Supporting NDC Implementation Through Market and Non-Market Based Approaches: Carbon Pricing and More 6 September 2016 Kazuhisa KOAKUTSU Climate and Energy Area Institute for Global Environmental Strategies

Paris Agreement Overall Paris Agreement (Legal) Preamble/Objective (Art. 2) Capacity Building (Art. 11), Education, Training and awareness (Art. 12) NDC (Art. 3) Mitigation (Art. 4), Sinks/REDD (Art. 5), Market Mechanism (Art. 6) Transparency (Art. 13) Global Stock take (Art. 14) Adaptation (Art. 7), Loss and Damage (Art. 8) Implementation and compliance (Art. 15) Finance (Art. 9) Organization and administrative (Art. 16-29) Technology (Art. 10) Entry into force (Art. 21)

Long-term Low GHG Emission Strategy Article 4: Mitigation Global Global peaking of greenhouse gas emissions and to undertake rapid reductions Balance between anthropogenic emissions by sources and removals by sinks of greenhouse gases in the second half of this century National Each Party shall prepare, communicate and maintain successive nationally determined contributions (NDCs) that it intends to achieve. Parties shall pursue domestic mitigation measures NDCs will represent a progression beyond the Party’s then current NDC Each Party shall communicate a NDC every five years Developed country Parties should continue taking the lead by undertaking economy-wide absolute emission reduction targets. Developing country Parties should continue enhancing their mitigation efforts and are encouraged to move over time towards economy-wide emission reduction or limitation targets. Long-term Low GHG Emission Strategy All Parties should strive to formulate and communicate long-term low greenhouse gas emission development strategies

Article 6: Market Mechanism Cooperative Approach (Article 6, 2-3) Cooperative approaches that involve the use of internationally transferred mitigation outcomes towards nationally determined contributions and promote sustainable development and ensure environmental integrity and transparency Shall apply robust accounting to ensure the avoidance of double counting consistent with guidance by Meeting of Paris Agreement (CMA) A Mechanism to Mitigation and SD (Article 6, 4-7) A mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development is established under the authority and guidance of the CMA ER from this mechanism will be used to achieve the NDC and shall not be used if that are used by another Party Share of proceeds is used to meet the cost of adaptation A Non-Market Approach (Article 6, 8-9) Promote mitigation and adaptation ambition, enhance public and private participation, and coordination

Map 1: INDC and NDC submissions IGES INDC & NDC Database

Map 1: INDC and NDC submissions by countries First NDC submitted INDC submitted INDC not submitted or not Party to the UNFCCC

Map 2: Status of Ratification of the Paris Agreement Paris Agreement signed but not ratified Paris Agreement signed and ratified Paris Agreement not signed or not Party to the UNFCCC

Map 3: Mitigation target types Use of a conditional mitigation scenario Absolute emission reduction Relative emission reduction Carbon intensity reduction Peak of carbon emission Policies and actions No INDC submitted or not Party to the UNFCCC

Map 4: Countries mentioning quantified financial needs and specific technology transfer needs in their INDC/NDC Mention of specific technology transfer needs Mention of quantified financial needs Mention of both specific technology transfer needs and quantified financial needs No mention of quantified financial need or specific technology transfer need No INDC submitted or not Party to the UNFCCC

Map 4.1: Countries mentioning quantified financial needs in their INDC/NDC (in billion USD) Eastern Europe & Central Asia 34.8 2,567.0 356.7 North Africa & the Middle East Asia 58.2 2,456.9 Latin America & the Caribbean 1.5 Mention of quantified financial needs in INDC/NDC Oceania No INDC submitted or not Party to the UNFCCC Sub-Saharan Africa

Map 5: Types of Financial Needs mentioned in INDC/NDCs Policy implementation costs Quantified need of international financial support Both policy implementation costs and quantified need of international financial support No mention of quantified financial need in INDC No INDC submitted or not Party to the UNFCCC

Map 6: Main use of market mechanisms by countries International market mechanisms Regional market mechanisms Bilateral market mechanism National or sub-national trading scheme No use of market mechanisms No INDC submitted or not Party to the UNFCCC

Map 10: INDC and NDC submissions by countries First NDC submitted INDC submitted INDC not submitted or not Party to the UNFCCC

Panel Discussion on Supporting NDC Implementation Through Market and Non-Market Based Approaches: Carbon Pricing and More (Albert, EMB-DENR, Philippines) “What do you expect market and non-market based approaches to contribute to the NDC implementation.” (Naoki Torii, MOE, Japan) “What do you see the role of JCM in promoting emission reductions overseas and international cooperation, as well as in the context of implementing Japan’s NDC. “ (Mahua Acharya, GGGI) “What will be the relationship between the NDC and Green Growth Policy and how the market and non-market based approaches support for the implementation for both?”

Panel Discussion on Supporting NDC Implementation Through Market and Non-Market Based Approaches: Carbon Pricing and More (Noim Uddin, CPMA) “How do you advise companies (project developers) for the use of market and non-market approaches under the NDC” (Hyungna Oh, Kyung Hee University, Korea) “What will be the implication of Article 6 for Korea, especially for the ETS? (Takashi Hongo, Mitsui Global Strategic Studies Institute) “Could you provide us some example of how companies will take action and change their behavior based on the carbon price and under new market conditions? What will be the challenges and opportunities for them?”