Towards a 2015 Global Climate Agreement: Role of the LAC region in Contributing Towards Global Efforts John Kilani, Director, UNFCCC Sustainable Development Mechanisms Latin American and Caribbean Carbon Forum Bogota, 5 September 2014

2 Overview Shape of the 2015 agreement Milestones on the road to Paris Interplay of finance and markets Potential role of the CDM

3 Some fundamentals Scale – to match the needed decoupling of net emissions and economic output Broad and deep coverage – nations, sub-national authorities, sectors and multinational corporations Comprehensiveness – to address all dimensions of the climate challenge, including on development Permanence – through lasting international arrangements and strong domestic legal foundations

4 An outcome with interlinked components New legally binding agreement under Convention, supplemented by other decisions ◦To balance the political deal ◦To strengthen the implementation architecture ◦To launch work programmes ( ) Work originating from inside and outside the ADP

5 … but with many open questions Long-term approach based on science and a global emission pathway Scaled up cooperation at all levels – Parties, cities, subnational, multinationals Alignment of economic incentives with climate imperatives (internationally and nationally) National determination of commitments, periodically made progressively deeper over the long term How to reflect and strengthen the institutions of finance, technology and capacity building? How to express adaptation? How to ensure transparency?

6 Preparations for the October ADP Co-chairs have been active, based on June progress ◦Non-paper containing Parties’ views and proposals ◦Draft decision on INDC-related information ◦Draft decision on speed pre-2020 implementation ◦A reflections note with status and priorities Seeking early decision on sessions next year INDCs expected first quarter of 2015 Text of agreement available long before Paris

7 The LAAC Region and the 2015 agreement Help define the agreement ◦Formulation of long-term mitigation ◦Determine the integration of adaptation ◦Ensure a considered role for markets Showcase LAAC-suitable actions during TEMs Work with GCF to generate lessons on finance Ensure effective support via finance and markets

8 Finance and the CDM CDM has been key delivery tool under Kyoto Finance Technology Capacity-building World’s only multilateral offset programme Value in harmonized market with common standards Value in having a mechanism ready and operational

9 Movements in the CDM NMM often expressed as a movement beyond CDM Increased scale Net mitigation (not only offsetting) CDM simplification Enhanced standardization and objectivity (Board/secretariat taking on the complexity) Simplification of methodologies and processes Broadening the CDM’s use Compliance and voluntary markets Delivery mechanisms for results-based finance

10 What lies ahead for the CDM? Keep CDM for LDCs? Incorporation in 2015 agreement, strengthen implementation if needed Incorporation in results-based finance, to deliver finance and verify results Offsets for national-level trading and tax obligations Standard for domestic offset provision Increased use by voluntary market International transport sectors

Thank you Latin American and Caribbean Carbon Forum Bogota, 5 September 2014