Translating Nationally Determined Contributions into Action NAMA Training June 2016 Dhirendra Kumar, Team Lead UNFCCC secretariat Outline 1. Paris Agreement – brief summary 2. Potential links of INDCs with other national climate change processes 3. NAMAs and INDCs: Inter-linkages 4. Utilizing CDM experiences to develop NAMAs 5. Utilizing the existing CDM institutional arrangements for NAMAs 2 Paris Agreement – brief summary Mitigation by everyone • All countries participate in mitigation by Nationally Determined Contributions (NDCs) (Art. 4.2) • Shall pursue domestic mitigation measures • NDCs are ratcheted upwards every 5 years (Art. 4.3, 4.9) • Industrialized countries should have absolute targets (Art. 4.4) • Developing countries should “move over time” towards “economy wide reduction” or limitation targets (Art. 4.4) • All countries account for their emissions (Art. 4.13) • Environmental integrity, transparency, accuracy, completeness, comparability and consistency of inventories 3 Paris Agreement – brief summary Market Mechanism (Art. 6) • All countries can use a market mechanism (called SDM?) that combines features of CDM and JI (Art. 6.4) Supervised by body (~EB), payment of adaptation tax (Art. 6.6) Authorization of public and private entities by Party (Art. 6.4b) Allocation of credits to buyer and seller countries to prevent double counting (Art. 6.4c, 6.5) “Overall mitigation” of global emissions (Art. 6.4d) Rules to be developed by CMA based on the following principles • Real, measurable and long term reductions (38b dec.) • Definition of scopes of activities (38c dec.) • Additionality (38d dec.) • Verification and certification by DOEs (38e dec.) • Apply experience from Kyoto Mechanisms (38f dec.) 4 Paris Agreement – brief summary Market Mechanism (Art. 6) • Further market mechanisms (“cooperative approaches”) (CAs) are possible, but not yet defined (Art. 6.2 and 6.3) a) “Internationally transferred mitigation outcomes” (ITMOs) • Already possible to use before 2020 (108 dec.) b) Environmental integrity, transparency c) Guidance by CMA, bot no specific governing body • Possible inroad for bilateral mechanisms and direct emissions trading, as well as linking of ETS (an open flank and requires further political decisions) • Non-market approaches (Art. 6.8 and 6.9) 5 Paris Agreement – brief summary NDC • Updated INDC synthesis by Secretariat 2 May 2016, cut-off of information 4 April 2016 • INDCs can be converted to NDCs immediately upon signature of Paris Agreement or newly submitted (22) • INDCs with 2025 target replaced by new NDC by 2020 (23) • Ad-Hoc Working Group on Paris Agreement (APA) to develop rules for NDC features and info (26, 28) • NDC registry at UNFCCC from 2016 6 Potential links of INDCs with other national climate change processes Most countries use existing documents as data sources for their INDC development: • National Communications (e.g. Morocco) • National Inventories Some countries build upon ongoing national climate change processes to compile and communicate their INDC: • Low Emissions Development Strategies - LEDS (e.g. Colombia) • Nationally Appropriate Mitigation Actions NAMAs (e.g. Thailand) • Clean Development Mechanism - CDM (e.g. Vietnam) 7 NAMAs and INDCs: Inter-linkages Source: giz (NAMAs and INDCs: what are the interlinkages?) 8 NAMAs and INDCs: Inter-linkages Source: giz (NAMAs and INDCs: what are the interlinkages?) 9 NAMAs and INDCs: Inter-linkages Source: giz (NAMAs and INDCs: what are the interlinkages?) 10 NAMAs and INDCs: Inter-linkages Role of NAMAs in NDC implementation Many INDCs already include specific mitigation actions/NAMAs and/or provide important information as a reference/starting point for developing concrete actions: • Political priorities • Short term/ long term mitigation goal • Reduction potential of different sectors • Basis for NAMAs‘ prioritization • Concrete activities • Costs and co-benefits • Stakeholders … that can guide the translation of NDCs into concrete actions/NAMA provide opportunity for countries to implement their INDC. Source: giz (NAMAs and INDCs: what are the interlinkages?) 11 NAMAs and INDCs: Inter-linkages Role of NAMAs in (I)NDC implementation Next steps in transforming (I)NDCs: • Implementation plan • Technical preparation and capacity building • Build information base and monitoring system • Build institutional structures • Mainstream NDC into development planning and sector specific approaches • Mobilize resources and Private sector participation • Build support for climate action • Revisit INDC Source: giz (NAMAs and INDCs: what are the interlinkages?) 12 NAMAs and INDCs: Inter-linkages Benefits of NAMAs for INDC implementation NAMAs can serve as an instrument for / provide a good basis for… • Disaggregating national NDC targets to various sectors (top-down) -> reality check • Taking stock of and analysing actions at sectoral level (bottom-up) • Setting up MRV systems to monitor the INDC achievement and inform about successes and results (e. g. institutional arrangements, accounting methods) • Up-scaling existing actions with a view to raising ambition of future NDCs • Accessing and mobilizing international and domestic finance for the NDC implementation (e.g. through GCF, NAMA Facility) • Enhancing existing institutional structures relevant for NDC implementation Source: giz (NAMAs and INDCs: what are the interlinkages?) 13 NAMAs and INDCs: Inter-linkages Benefits of INDCs for the NAMA process • Through INDCs climate change mitigation, including NAMAs, gained high priority on the political agenda; awareness for climate change increased and a sense of urgency was developed • (I)NDCs provide an opportunity for … integrating NAMAs in an overarching mitigation framework enhancing domestic buy-in for sectoral action plans and individual measures, including NAMAs Up-scaling existing actions and raising ambition over time Mainstreaming climate change into development planning and sectoral plans Mobilizing climate finance and private sector engagement, incl. international and domestic resources Providing clear policy signals and potentially triggering mitigation actions in additional sectors Source: giz (NAMAs and INDCs: what are the interlinkages?) 14 NAMAs and INDCs: Inter-linkages • NAMAs and INDCs are already linked – many countries have built on NAMA development when preparing their INDCs • This linkage will be key for the implementation of (I)NDCs: NAMAs and INDCs should be integrated into long-term, coherent development and mitigation strategies NAMAs can serve as a key instrument to convert (I)NDCs into concrete action/ NAMAs can make INDC targets more tangible and offer a clear approach to implementation INDCs can guide NAMA development and vice versa NAMA development in preparing future NDCs NAMAs and INDCs (e.g., harmonize metrics, time periods, assumptions and methods used) could mutually reinforce each other if closely linked Source: giz (NAMAs and INDCs: what are the interlinkages?) 15 Utilizing CDM experiences to develop NAMAs: where does MRV fit? 16 Utilizing CDM experiences to develop NAMAs: MRV fits here? 17 Utilizing CDM experiences to develop NAMAs Leverage CDM MRV to FIT NAMA • Flexibility in monitoring methods depending on Size and other socio, techno- economic parameters • Strengthening assessment of non-GHG estimation and MRV • Reduce complexity in MRV procedure • Further work on the sector wide approaches • Development of more ex-ante (up-stream) standardized approach and reduced ex-post MRV • Reduce transaction cost (provide further top-down work in assessment of uncertainty, materiality, and reduce monitoring procedures). 18 Utilizing the existing CDM institutional arrangements for NAMAs Roles of CDM DNA • Decide whether the projects as proposed, will assist the host country in meeting its sustainable development priorities and issue Letter of Approval. • Establishment of national criteria for project approval and priority areas for project activity. • Efficient and transparent procedures for processing project applications. • Registration services for in-country project activities and monitoring to determine local sustainability benefit and cost. • Establish clear guidelines on the selection, consultation and monitoring processes that are required of projects (confirmation on stake holder consultation, socioenviro impacts) • Source of information on in-country opportunities for potential project investors and on the financial and project opportunities for potential in-country project proponents. • Submission for standardized baselines, positive list of technologies, etc. 19 Utilizing the existing CDM institutional arrangements for NAMAs Structures of institutions – NAMA Coordinating body/ Lead institution • A lead institution (mostly MoEF) to coordinate the MRV system and direct the activities of other actors in this area. Inter-ministerial body/ Steering Committee • This body promotes coordination across key stakeholders and also ensures input into other national processes and plans. Technical Coordinator(s) • The technical coordinator, which may take the form of a team or individual, often sits within the lead institution and is responsible for the technical outputs of the MRV system. Technical coordinators may also be designated for each of the sectoral working groups. Sectoral Working Groups • These groups comprise a combination of governmental institutes, research organizations and other public and private sector bodies. 20 Utilizing the existing CDM institutional arrangements for NAMAs Expected task of NAMA lead institutions • General guidance to the NAMA development process • Alignment of NAMA policies with National Development Priorities. • Facilitate mainstreaming of mitigation in all steps of National Polices • MRV - Collect / Aggregate and Reporting of mitigation outcomes. • Repository of progress and adjustment to new circumstances. • Maintenance of NAMA registry. • Coordination of development and implementation MRV management and international reporting. • Climate finance coordination. 21 Utilizing the existing CDM institutional arrangements for NAMAs Potential for synergies • Broaden the scope of CDM DNA Roles and responsibilities • DNA are key source of information and dissemination of knowledge involving all the relevant actors. (emission levels, technologies and SD). • DNA facilitated the creation of networks among relevant actors in key sectors, both nationally and internationally. • CDM DNA in countries have created a base for interlinking national sustainable development objectives to mitigation opportunities in the economy, as well as certain levels of expertise in mitigation issues. • CDM DNA knowledge base could be leveraged to coordinate and provide guidance on the development and implementation of NAMAs. 22 THANK YOU! [email protected] Team Lead, Programme Officer UNFCCC UNFCCC Secretariat
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