Seminar on MRV and Carbon Markets:
A Climate Change Expert Group (CCXG) / Global Forum on Environment Event
Organised by OECD and IEA
28–29 March 2011, OECD Conference Centre, Paris
This Seminar stimulated dialogue between governments and (non-governmental) experts from a wide range of countries and key organisations on aspects of carbon markets and measurement, reporting and verification (MRV) of action on climate change. Given the outcome of Cancún, this Forum offered a timely opportunity to discuss what needs to be reported, and how, in an international context, as well as to consider how to advance the effective use of carbon markets in the implementation of climate policy. The active participation of 150 delegates -- representing 45 countries, of which 12 non-member countries, UNFCCC Secretariat, World Bank, and business and industry -- helped ensure a broad discussion of issues, relevant both globally and domestically. Annotated agenda. Summary Report & List of participants.
Discussion Documents (final versions):
Opening plenary: Cross-cutting issues in MRV and carbon markets
2a. Breakout session: MRV of finance
This breakout session explored how to best monitor and track long-term climate change financial commitments. It focused on how to build on existing UNFCCC reporting mechanisms to create a more comprehensive, reliable and transparent system to understand sources of finance.
Relevant final paper: “Monitoring and Tracking Long-Term Finance to Support Climate Action” by Barbara Buchner (CPI), Jessica Brown (ODI) and Jan Corfee-Morlot (OECD)
Facilitator: Diann Black-Layne, Ambassador and Chief Environment Officer, Ministry of Agriculture, Lands, Housing and the Environment, Antigua and Barbuda
2b. Breakout session: International consultations and analysis (ICA)
This session explored what ICA could entail in the context of the outcomes from COP 16 in Cancún. It focused on how to design a facilitative process that enhances transparency of mitigation actions and their effects in developing countries.
Relevant draft document: “Key Issues Relating to International Consultations and Analysis” by Gregory Briner (OECD), Nina Campbell (IEA) and Jane Ellis (OECD)
Facilitator: Irene Suarez Perez, Ministry of Environment and Energy, Costa Rica
3a. Breakout session: Establishing sectoral and national baselines
This session focused on issues involved in setting national and sectoral baselines. The definition and purposes of baselines were discussed, as well as their role in safeguarding environmental integrity and achieving ambitious mitigation goals.
Relevant draft document: “Setting National and Sectoral Baselines” by Andrew Prag (OECD) and Christa Clapp (OECD)
Facilitator: Pedro Martins Barata, Senior Policy Advisor, Ministry of Environment, Portugal
3b. Breakout session: Sub-national experiences with carbon markets
The aim of this session was to explore the successes and challenges of sub-national carbon market schemes (including cities, states, and regions).
Relevant document: “Cities and Carbon Market Finance: Taking Stock of Cities’ Experience with Clean Development Mechanism (CDM) and Joint Implementation (JI) - Executive Summary” by Christa Clapp, Alexia Leseur, Oliver Sartor, Gregory Briner and Jan Corfee-Morlot, November 2010.
Facilitator: Jan Corfee-Morlot, Senior Climate Policy Analyst, Climate Change, Biodiversity and Development Division, OECD Environment Directorate
5a. Breakout session: National communications
This session explored how to enhance reporting on climate-related activities via national communications and biennial update reports to the UNFCCC, in order to fill information gaps, improve transparency and build trust between Parties.
Relevant finalised paper: “Frequent and Flexible: Options for Reporting Guidelines for Biennial Update Reports” by Jane Ellis (OECD), Gregory Briner (OECD), Sara Moarif (IEA) and Barbara Buchner (CPI).
Facilitator: Maurice LeFranc, Senior Advisor on International Climate Change, Environmental Protection Agency (EPA), US
5b. Breakout session: Offsets, fragmented approaches and accounting
This session examined issues that may be encountered in accounting for offsets after 2012. Potential frameworks for international GHG accounting will be proposed, and the role different offset and crediting mechanisms may play within these frameworks will be discussed.
Relevant final paper: “Keeping Track: Options to Develop International Greenhouse Gas Unit Accounting After 2012” by Andrew Prag (OECD), André Aasrud (IEA) and Christina Hood (IEA)
Facilitator: Hugh Sealy, Energy and Sustainable Development Adviser, Ministry of Finance, Planning, Economy, Energy, Foreign Trade and Cooperatives, Grenada
6a. Breakout session: Market Readiness
This break-out session looked at the technical, policy and institutional building blocks needed to make new market mechanisms operational. It explored what kind of support for establishing market mechanisms is needed and how it can be provided most effectively.
Relevant paper: “Market Readiness: Building Blocks for Market Approaches” by André Aasrud (IEA), Richard Baron (IEA) and Katia Karousakis (OECD), OECD/IEA Information Paper, November 2010.
Facilitator: Maurits Blanson Henkemans, Ministry of Economic Affairs, Netherlands
6b. Breakout session: Smoothing the transition to emissions trading schemes
This session was designed to address stakeholder concerns when moving to an ETS, including competitiveness and distributional issues.
Relevant document: "Addressing International Competitiveness in a World of Non-Uniform Carbon Pricing: Lessons from a Decade of OECD Analysis”, OECD Policy Brief, November 2010.
Facilitator: Russel Mills, Global Director of Energy and Climate Change, Dow Chemical, and Business and Industry Advisory Committee (BIAC)