21st August 2018, Montevideo, Uruguay Sustainable Development Dialogue (SDD) on Implementation of Article 6 of the Paris Agreement under the UNFCCC process Cooperative approaches: pathway from offsets to a real contribution to SDGs 21st August 2018, Montevideo, Uruguay Sven Braden, SDD

“A Party driven dialogue with the aim to help overcome knowledge and political barriers for Parties to promote sustainable development through voluntary cooperation under Article 6”

“The relationship of sustainable development and climate change is based on synergies (e.g positive health impacts arising from mitigation activities) and trade-offs (e.g food and energy security)”

SD in the Paris Agreement and Art. 6 Mitigation Activities under Art. 6 and their relations to SDGs Synergies with SDG Climate Action Conflicts with SDG SDG No. 7 Ensure access to affordable, reliable, sustainable and modern energy for all SDG Targets: 7.1, 7.2, 7.3 SDG No. 15 Protect restore and promote sustainable use of terrestrial ecosystems SDG Targets: 15.2 sustainable forest management SDG No. 13 Take urgent action to combat Climate Change SDG Tarrgets: 13.1, 13.2, 13.3 SDG No. 2 Ending hunger, achieve food security SDG Targets: 2.3, (double agricultural productivit) SDG No. 4 Quality Education

IIIII IIIII IIIII IIIII III Reference to Sustainability in “legal instruments” in the UNFCCC process 1992 – UNFCCC I 1997 – Kyoto Protocol III 2015 – Paris Agreement IIIII IIIII IIIII IIIII III

SDD Approach Identification of High-Level Opions (HLOs) based on Parties Submission Presentation of HLOs - Parties Views Presentation of HLOs and Analysis of Parties Feedback Next Steps

based on Parties Submission Identification of High-Level Options (HLOs) based on Parties Submission

Number of submissions to Article 6 - by COP23, Oct./Nov. 2017 Identification of High-Level Options (HLOs) based on Parties Submission Number of submissions to Article 6 - by COP23, Oct./Nov. 2017 All submissions by Parties Article 6.2 Article 6.4 Article 6.8 22 15 12 9 Observations: Most Parties shared their views on Article 6.2 A few Parties shared their views on Article 6.8 only, many did not SD is mentioned in submissions related to all three Article 6 approaches

Identification of High-Level Options (HLOs) based on Parties Submission Governance SD criteria, SDG Framework SD assessment Safeguards Reporting, transparency

Presentation of HLOs and Analysis of Parties Feedback

Presentation of HLOs and Analysis of Parties Feedback Date Occasion Location Form of Engagement February 19th ICTSD Art. 6 Meeting Tokyo, Japan Roundtables March 21st ADB Workshop on Art. 6 Manila, Philippines April 4th Technical Expert Meeting of AILAC Mexico City, Mexico April 6th Informal Meeting of Art. 6 Negotiators April 11th African Carbon Forum Nairobi, Kenya April 24th GA Partnership for Market Readiness Kiev, Ukraine Information April 29th Bonn, German

Presentation of HLOs and Analysis of Parties Feedback Objective Identify convergence and divergence among Parties and stakeholders on the HLOs Produce input (based on Parties Feedback) to develop draft text proposals for the Art. 6 implementing provisions General Observations after SDD Engagement Events Strong role of national authorities – need for corresponding capacity / strategy building Anticipated strong role of markets (demand side) Need for continuous platforms / campaigns / exchanges on SD to assist Parties and create market demand

Presentation of HLOs and Analysis of Parties Feedback Preparation 6 Factsheets addressing High Level Options Unpacking the issue – Why it matters? Identification of Parties feedback related to specific HLO Does the current draft (SBSTA note) adress specific HLO? Considerations for text recommendations

Presentation of HLOs and Analysis of Parties Feedback Unpacking the issue – Why it matters? Avoid trade-off between SD and mitigation measures, leading to a ‘race to the bottom’ for sustainable development by integrating clear and transparent SD criteria and decision- making procedures supports social integrity and credibility of emission reductions transacted Defining Art. 6 relevant SD criteria, creation of links to the SDG framework (17 goals, 169 targets) Identification of Parties feedback related to specific HLO SDG Framework can serve as guidance through all Art. 6 approaches – to support national SD priorities SD criteria applied by Parties shall be publicly available No convergence of views whether SD criteria should be mandatory, market demand for SD criteria assumed

Presentation of HLOs and Analysis of Parties Feedback Does the current draft (SBSTA note) adress specific HLO? Art. 6.2: No SD criteria mentioned Art. 6.4: No SD criteria mentioned, may be included in explanation on why activity fosters SD, lacks references to institutional roles Considerations for text recommendations Art. 6.2: Encouraging Parties to use relevant SD criteria , endorsement of SDGs in case of absent SD criteria Art. 6.4: Host Party defines relevant SD criteria which can be assessed and monitored; mandating the Supervisory Body to develop or endorse SD criteria over time. Those criteria could be voluntary endorsed by host/using parties.

Presentation of HLOs and Analysis of Parties Feedback Unpacking the issue – Why it matters? Creation of a “race to the top” with projects competing to maximize SD impacts increased trust in the overall mechanism; higher transparency and credibility in SD claims of participants Creation of synergies between relevant SDG indicators and SD Assessment of Art. 6 activities (via a tool?) Examples of best practices for sustainable development assessment of climate mitigation actions Identification of Parties feedback related to specific HLO Parties agreed on the usefulness of a common SDG tool (standardizing assessments) if it is voluntary and respects national prerogative of Parties, strong role of DNA Certification of existing standards was discussed but for 6.4 no agreement if Supervisory Body or Parties would do certification

Presentation of HLOs and Analysis of Parties Feedback Does the current draft (SBSTA note) adress specific HLO? Art. 6.2: SD Assessment not mentioned Art. 6.4: may be included in explanation on why activity fosters SD Considerations for text recommendations Art. 6.2: SD assessment as a eligibility requirement to ensure compliance with host country SD priorities, Parties to provide information on institutional arrangements for SD Assessment Art. 6.4: Ensure verification of SD claims; specification of institutional arrangements of SD assessment (DNA; DOE); Mandate for the development or adoption of an existing tool (such as the Equator principles) to assess the SD contributions of activity

Next Steps

Next Steps Publication and Distribution of 6 Factsheets by End of August Views stated in this document are those of the authors, including proposals for text elements. Publication will be made on behalf of GSF and UNEP-DTU Factsheets are to inform Parties ahead of Bangkok Session in September Update of SDD Working Paper - integration of main findings of Parties feedback on SDD by September SDD to asssist Parties to agree on provisions for the operationalization of SD provisions in Art. 6 at: Meeting of SBSTA in Bangkok, 4th to 9th September Informal meeting of Art. 6 negotiators in Glion, 16th to 19th October (tbc) COP 24 in Katowice, 3rd to 12th December

Next Steps

Muchas Gracias The Dialogue on Sustainable Development is a joint collaboration of the Gold Standard Foundation and UNEP DTU and is supported by Belgium, Germany, Liechtenstein, Norway, Sweden and Switzerland. Sven Braden, Consultant, braden@climatefoundation.li Karen Holm Olsen, UNEP DTU Partnership, kaol@dtu.dk Marion Verles, Gold Standard Foundation, marion.verles@goldstandard.org Fatima-Zahra Taibi, UNEP DTU Partnership, ftaibi@dtu.dk