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):

• Accounting for Project Based Mechanisms within the Nationally Appropriate Mitigation Actions of the Developing Countries - Taking China as an Example. By Duan Maosheng (Tsinghua University, China).
• Governance Aspects of Measure, Report and Verify (MRV) and Information Needs to Improve the MRV of Finance. By Farrukh Iqbal Khan (Permanent Mission of Pakistan to the United Nations, NY)
• Indonesia’s National Mitigation Actions: Paving the Way towards NAMAs. By Syamsidar Thamrin (Bappenas, Indonesia)
  

Welcoming remarks

• Helen Mountford, Deputy Director, OECD Environment Directorate
• Fernando Tudela, Chair of the Climate Change Expert Group

Opening plenary: Cross-cutting issues in MRV and carbon markets

• Artur Runge-Meztger, Head of Unit, Climate Strategy and International Negotiations, European Commission
• Dicky Hindarto, Head of Carbon Trade Mechanism Division, National Council on Climate Change, Indonesia
• Farrukh Khan, Counsellor, Permanent Mission of Pakistan to the United Nations, New York
• Henry Derwent, President and CEO, International Emissions Trading Association (IETA), and Business and Industry Advisory Committee (BIAC)
• Richard Baron, Head of Climate Change Unit, IEA

 

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

• Barbara Buchner, Director, Climate Policy Initiative (CPI), Venice, and Jessica Brown, Research Officer, Climate Change, Environment and Forests, Overseas Development Institute (ODI)
• Erik Bjørnebye, Senior Advisor, Ministry of Foreign Affairs, Norway
• Ari Huhtala, Senior Environmental Specialist, Climate Change, World Bank
• Alexia Kelly, Climate Change Mitigation Expert, Department of State, US

 

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

• Gregory Briner, Consultant, Climate Change, Biodiversity and Development Division, OECD Environment Directorate
• Teng Fei, Associate Professor, Tsinghua University, China
• Yamide Dagnet, Senior Science and Policy Adviser on MRV, Department of Energy and Climate Change (DECC), UK

 

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

• Andrew Prag, Policy Analyst, Climate Change, Biodiversity and Development Division, OECD Environment Directorate
• Juan Mata Sandoval, Director General of Climate Change Policy, Ministry of Environment and Natural Resources (SEMARNAT), Mexico
• Syamsidar Thamrin, Head of Weather and Climate Change Division, National Development Planning Agency (BAPPENAS), Indonesia
• Gareth Phillips, Chief Climate Change Officer, Sindicatum Carbon Capital

 

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

• Yuko Nishida, Bureau of Environment, Tokyo Metropolitan Government, Japan
• Feng An, Executive Director, Innovation Center for Energy and Transport, China
• Brian Turner, Deputy Director, Washington DC Office of Governor Edmund G. Brown Jr., Executive Officer for Climate Policy, California Air Resources Board, US

 

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

• Jane Ellis, Senior Climate Policy Analyst, Climate Change, Biodiversity and Development Division, OECD Environment Directorate
• Andrea Rudnick, Head of Climate Change Office, Ministry of Environment, Chile
• Erasmia Kitou, Policy Officer, European Commission
• Jose Alberto Garibaldi, Senior Consultant, Ministry of Environment, Peru

 

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

• Andrew Prag, Policy Analyst, Climate Change, Biodiversity and Development Division, OECD Environment Directorate
• Duan Maosheng, Professor, Tsinghua University, China, and Vice-Chair, CDM Executive Board
• Juergen Lefevere, Adviser, Climate Policy and International Negotiations, European Commission
• Michael Lazarus, Senior Scientist, Stockholm Environment Institute
• Pierre Guigon, Product Manager, Bluenext
  

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

• André Aasrud, Policy Analyst, Climate Change Unit, IEA
• Joëlle Chassard, Manager, Carbon Finance Unit, World Bank
• Sandra Garavito, Advisor, Climate Change Mitigation Office, Ministry of Environment, Colombia
• Andzela Petersone, Ministry of Environment, Latvia

 

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)

• Rob Dellink, Senior Economist, Climate Change, Biodiversity and Development Division, OECD Environment Directorate
• Peter Brunt, Manager, Climate Markets, Ministry for the Environment, New Zealand
• Giuseppe Montesano, Head of Environmental Policy, Enel SpA
• Ingrid Jegou, Manager, Global Platform on Climate Change, Trade and Sustainable Energy, International Centre for Trade and Sustainable Development (ICTSD).

 

Related event: September 2011 Global Forum on Environment / Climate Change Expert Group Seminar on MRV and Carbon Markets