Pacific Alliance: market and non-market approaches for achieving the NDCs
The Pacific Alliance’s Technical Subgroup on MRV held discussions on the role of market and non-market approaches for achieving the Nationally Determined Contributions (NDCs) in March 2019. Two key findings from the talks were that (a) market-based mechanisms are important but need to be complemented with other policies and (b) transparency must be demonstrated in both measurement methodologies and emission-reduction adjustments.
The Pacific Alliance, a regional integration initiative comprising Chile, Colombia, Mexico and Peru, reaffirmed its commitment to the Paris Agreement and the intention to strengthen regional efforts on the measurement, reporting and verification (MRV) of both greenhouse gas emissions and reductions. Integral to this work is consideration of the possible voluntary market mechanisms for the region that feature in the 2017 Cali Declaration.
In response to this intention, the Alliance’s Technical Subgroup on MRV was formed, providing a space for technical exchange and the development of agreements on MRV matters. During the Subgroup’s most recent meeting, a two-day workshop held in March 2019 in Mexico City and supported by Environment and Climate Change Canada, representatives from the four countries had the opportunity to discuss what roles they see the different market and non-market approaches playing in the achievement of their NDCs. The workshop’s objectives were, among others, to improve understandings of the potential pathways and cooperative approaches for implementing an NDC strategy, to explore the relationship between project-level MRV and NDC-level accounting, and to share reflections on pilot activities and Article 6 implementation.
In the workshop each country had the opportunity to share its thoughts on the most recent Conference of the Parties, COP24 in Katowice. Countries pointed out the need to increase their mitigation goals and, despite the fact that negotiations on Article 6 are still ongoing, to strengthen their MRV systems, particularly those for carbon emissions and reductions. Delegations also had the chance to discuss ‘linking MRV with NDC achievement’ and took part in a structured, game-based exercise to explore the benefits and risks of using market-based mechanisms as part of an NDC strategy.
In the workshop, participants reached a number of important conclusions. Among their findings, they established that: market-based solutions have a key role to play as an instrument for achieving NDCs but that they need to be complemented with a mix of policies and be consistent with the domestic strategies of each country; market-based solutions present an opportunity for technology transfer; and transparency must be demonstrated in both measurement methodologies and emission-reduction adjustments in the GHG inventories in order to avoid double counting.
For more information on the Mexico meeting of the Pacific Alliance’s Technical Subgroup on MRV, please visit:
https://collaborase.com/attachments/12728?1558452424 (English version)
https://collaborase.com/attachments/12729?1558533662 (Spanish version)