1. 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

2. 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

3. 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

4. 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?

5. Thank you CPMA Climate Policy and Markets Advisory International AB
PO Box 3005
SE Uppsala
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