hood (iea) part 2 accounting ccxg gf march2014
Post on 20-Dec-2014
102 Views
Preview:
DESCRIPTION
TRANSCRIPT
Climate Change Expert Group www.oecd.org/env/cc/ccxg
GHG or not GHG:Accounting for diverse mitigation
contributions in the post-2020 climate framework
Christina Hood (IEA)
Based on the draft discussion paper by C. Hood, G. Briner and M. Rocha
CCXG Global Forum19 March 2014, Breakout Group B
2 Climate Change Expert Group
Session 2 (11.30-13h)
Double counting of mitigation
Forms of double counting
Examples of double claiming
Single-year targets and mitigation transfers
Options for “opt-in” rules for use of market or non-market mitigation transfers
3 Climate Change Expert Group
Which transfers matter for accounting?
Two conditions under which transfers of mitigation outcomes matter for UNFCCC accounting:
Could include credits (offsets), allowance units from domestic emissions trading systems, or non-market transfers of mitigation outcomes
“Used” by a Party as counting directly towards a contribution under UNFCCC
Originating outside the boundary of that contribution(geographic, scope or temporal)
+
4 Climate Change Expert Group
Double counting of mitigation
“Double issuance” = more than one unit issued for the same emissions reductions.
“Double selling” or “double retirement” = same unit used more than once towards emissions obligations
“Double claiming” against pledges/targets = same mitigation outcome claimed by two jurisdictions
5 Climate Change Expert Group
Examples of double claimingParty A Party B How double claiming could arise
Quantified GHG
GHG inventory
Credit units generated in Party B are sold to Party A. Emissions reductions could be counted by both.
6 Climate Change Expert Group
Examples of double claimingParty A Party B How double claiming could arise
Quantified GHG
GHG inventory
Credit units generated in Party B are sold to Party A. Emissions reductions could be counted by both.
Quantified GHG
Renewable energy capacity
If renewable energy target delivered in part by crediting mechanism (with units sold to Party A), could be double-counting of GHG reductions.
7 Climate Change Expert Group
Examples of double claimingParty A Party B How double claiming could arise
Quantified GHG
GHG inventory
Credit units generated in Party B are sold to Party A. Emissions reductions could be counted by both.
Quantified GHG
Renewable energy capacity
If renewable energy target delivered in part by crediting mechanism (with units sold to Party A), could be double-counting of GHG reductions.
Renewable energy (transfers)
Renewable energy (capacity)
With trade of green certificates between Party A and B, there is potential for double-counting if one Party accounts for the transfers and the other doesn’t.
8 Climate Change Expert Group
Examples of double claimingParty A Party B How double claiming could arise
Quantified GHG
GHG inventory
Credit units generated in Party B are sold to Party A. Emissions reductions could be counted by both.
Quantified GHG
Renewable energy capacity
If renewable energy target delivered in part by crediting mechanism (with units sold to Party A), could be double-counting of GHG reductions.
Renewable energy (transfers)
Renewable energy (capacity)
With trade of green certificates between Party A and B, there is potential for double-counting if one Party accounts for the transfers and the other doesn’t.
Quantified GHG
Production of clean electricity
If electricity is exported from Party B to Party A via grid interconnection, the GHG reductions could be counted by both Parties.
9 Climate Change Expert Group
What do Parties want to “prevent”?
1. Prevent double counting in ex post reconciliation of actual transfers ? requires tracking of actual unit or non-market
transfers
2. Also prevent double counting in ex ante estimates of expected mitigation from national contributions ? requires restrictions on what types of
contributions can use market or non-market transfers
10 Climate Change Expert Group
Contributions defined as single-year or multiple-year targets
Multiple Year Target 2020-30
Multi-year target avoids risk that emissions in single target year are unrepresentative of general trend
100Mt
20302020
90Mt
80Mt
2025
2030 target
Multi-year emissions target
Annual unit purchases
2030 inventor
y
Actual reported inventory emissions
11 Climate Change Expert Group
Contributions defined as single-year or multiple-year targets
100Mt
20302020
90Mt
80Mt
2025
2030 target
2030 inventor
y
Actual reported inventory emissions
Total emissions and abatement less certain ex-ante
Gets complex when we think about “vintages”…
12 Climate Change Expert Group
Ex-ante clarity on expected total abatement and national goals
3. Avoidance
• Ex post reporting of flows• Provide ex ante estimate of expected flows• GHG based contributions must account for flows, must be
multi-year.
• Ex post reporting of flows• Provide ex ante estimate of expected flows• Quantitative limit on units from Parties that do not
account for flows.• Units in single-year targets must be reflective of
continuous action
• Ex post reporting of flows*• Provide ex ante estimate of expected flows
Options for “opt in” to use of market or non-market transfers
2. Enhanced clarity
1. Transparency
*flows = issuance, retirement, transfers, banking
[PLUS: governance of systems, registry and tracking arrangements via FVA]
13 Climate Change Expert Group
Questions for discussionShould double counting be prevented from occurring
ex ante, or only during ex post reconciliation of GHG emission levels and unit transfers?
If only Parties with certain types of contributions can “opt in” to use of market or non-market transfers, how can this be reconciled with existing participation in CDM or other market mechanisms?
To prevent “double claiming” between GHG and a non-GHG contributions, should Parties with non-GHG contributions have to adjust their reported outcomes?
top related