Marlen Goerner
CPA’s Carbon Pricing and Article 6 Workshop and REdiCAP
22 July 2024|Event
The Carbon Pricing in the America (CPA), in collaboration with the UNFCCC Regional Collaboration Centre (RCC) for Latin America and the Economic Commission for Latin America and the Caribbean (ECLAC), is thrilled to present its first CPA’s Carbon Pricing and Article 6 Workshop and REdiCAP.
This five-day training will be conducted at ECLAC's facilities in Santiago de Chile, from July 22nd to 26th, 2024. It is funded by ECLAC with support from Euroclima, and the CIACA Project, which is implemented by the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat through its RCCs.
This first edition of the CPA Knowledge-Sharing and Hands-on Training will bring together CPA members, observers and partners, to overview the different carbon pricing instruments such as carbon taxes, with a particular focus on the implementation of an Emission Training System (ETS). Recognizing the significance of carbon pricing as a policy tool for incentivizing greenhouse gas emissions reduction and facilitating the achievement of countries’ Nationally Determined Contributions (NDCs), the training will shed light on the pivotal role of ETS in the climate policy mixes of numerous jurisdictions. It will particularly highlight the growing interest among emerging economies and developing countries in taking steps towards developing such systems and expanding global emissions coverage.
The event presents an exceptional opportunity also to host the Regional Dialogue on Carbon Pricing (REdiCAP), aimed at sharing practical experiences and insights gained from the implementation of carbon pricing instruments. This initiative aligns with the broader global effort to promote carbon pricing as a crucial tool for addressing climate change. It draws upon key lessons learned from the UNFCCC Secretariat’s Collaborative Instruments for Ambitious Climate Action (CiACA) initiative, emphasizing the effectiveness of regional exchange of experiences from both national and subnational perspectives. Furthermore, the event will aim to demystify Article 6 of the Paris Agreement, offering insights into its opportunities, challenges, participation requirements and implications. We hope that this first edition will live up to your expectations and lay the foundations to deepen the knowledge acquired in future editions of our Knowledge-Sharing Training.
22 Jul 2024
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Introduction
09:00 to 10:00Welcoming remarks
o Carlos De Miguel, Chief of the Sustainable Development and Human Settlements Division, ECLAC (5 min)
o Maisa Rojas, Minister of the Environment of Chile (10 min)
o Fabiana Rodrigues, UNFCCC RCC Latin America (5 min)
o Ewout Sandker, Head of Cooperation EU-Delegation Chile (5 min)
o Myriam Savard-Lajeunesse, Quebec Bogota Office (3 min)
o Javier Martínez, CPA Co-Chair, Panama (3 min) -
Overview of Carbon Pricing Instruments: A Latin American Perspective
10:00 to 10:30o Jimy Ferrer, Economic Affairs Officer, ECLAC.
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Leveraging Carbon Pricing Policies for NDC achievement and progression
10:30 to 11:00o Laura Lasso De La Vega, UNFCCC RCC Latin America
This session will introduce the importance of mobilizing both domestic and international sources of finance, including from the private sector and how well-designed carbon pricing policies support climate ambition under the Paris Agreement and its upcoming 2025 NDCs (NDC 3.0) with due consideration of national circumstances and priorities. -
Presentation of the State and Trends of Carbon Pricing in other regions
11:00 to 11:20o Marlen Goerner (World Bank – PMI)
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Introducing the participants
11:35 to 11:55o Dorsa Sabet-Rasekh - CPA Secretariat
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Intro to Carbon Pricing & ETS: Comparing different carbon pricing instruments and looking at design elements of an ETS
11:55 to 13:15o Marlen Goerner (World Bank – PMI - Global)
o Víctor Alejandro Ortiz Rivera (ICAP - ETS)
This session will provide an introduction to the concept of compliance carbon pricing and the different types of carbon pricing instruments as well as its connection to Article 6. It will also provide an introduction to the design elements typical in the design and implementation of an ETS.- Víctor Ortiz
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Defining the scope and the coverage of an ETS
14:45 to 16:15o Andrés Felipe Olarte Peña (ICAP)
o Katie Gibbs, Canada, Carbon Market Bureau
o Alise Karcevska, Head of UK ETS International Cooperation
o Ishtar Ali, Head of UK ETS Free Allocation
Some of the decisions that jurisdictions need to make early in the process of implementing an ETS revolve around which economic sectors to cover and which greenhouse gases to cover. This session will discuss the practical implications of making these decisions. -
Setting the cap: managing supply, and demand in an ETS
16:30 to 18:00o Andrés Felipe Olarte Peña (ICAP)
o Katie Gibbs, Canada, Carbon Market Bureau
o Alise Karcevska, Head of UK ETS International Cooperation
o Ishtar Ali, Head of UK ETS Free Allocation
Some of the decisions that jurisdictions need to make early in the process of implementing an ETS revolve around which economic sectors to cover and which greenhouse gases to cover. This session will discuss the practical implications of making these decisions.- ICAP carbon markets
23 Jul 2024
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Administration of an ETS
09:30 to 11:00Developing an MRV system for the ETS - Data collection, processes, and enforcement.
o Amanda Luna, Carbon Trust
o Juan Pablo Rodríguez, ChileAn MRV system constitutes the backbone of an ETS. This session will discuss the objectives that an MRV system seeks to achieve, the infrastructure that is required, the actors that are involved and the mechanisms to ensure compliance.
- Amanda LunaJuan Pablo Rodriguez
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Allocating allowances in an ETS: Options, implications, and experience
11:30 to 13:15o Victor Alejandro Ortiz Rivera, ICAP
o Jean-Yves Benoit, Québec
o Alise Karcevska, Head of UK ETS International Cooperation
o Ishtar Ali, Head of UK ETS Free AllocationThe session will discuss different mechanisms to distribute the carbon budget under the ETS: either for free or through auction. The session will also discuss the practical needs to develop each allocation mechanism.
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Market infrastructure: registries, auctioning platforms, building blocks, market dynamics (actors, players) roles
14:45 to 16:15o Andrés Felipe Olarte Peña (ICAP)
o María Montoya (WCI, Inc.)This session will provide an overview of the different elements of infrastructure required for the implementation of an ETS (such as a registry to track the ownership and the transaction of allowances) and the actors involved (such as financial intermediaries).
Direct link to the session video -
“Ask me anything”. Strengthening the knowledge so far: Insights from the theory and the practice.
16:30 to 18:00o Víctor Alejandro Ortiz Rivera (ICAP)
o Andrés Felipe Olarte Peña (ICAP)
o Marlen Goerner (World Bank – PMI)
o Diana Guzmán, SEMARNAT, México (Virtual Participation**)
o Suriel Islas, SEMARNAT, México (Virtual Participation**)
o Martín Aguilar, SEMARNAT, México
In this session, participants will discuss in groups the theoretical learnings that they have received so far. The experts will be available to answer questions, as well as to go more in depth into the topics that require more discussion.
24 Jul 2024
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Country Carbon Pricing Instruments Snapshot
09:30 to 10:30o Ana Domínguez, UNFCCC RCC Latin America.
Each case (approx. 5-6 national or subnational jurisdictions) presents the respective instruments in 5 minutes, using a ppt with a maximum of two slides. The presentation should contain key features of each instrument (scope and coverage, carbon price, any other main design element, and any other important feature).
o Potential Cases
▪ Chile
▪ Colombia
▪ Paraguay
▪ Brazil (TBC)
▪ Querétaro
▪ European Union (confirmed) (Virtual Participation**)
▪ Canada -
World Cafe (Exposure Method)
10:45 to 11:45o Ana Domínguez, UNFCCC RCC Latin America.
2-4 groups are formed, each group allocated to a table. Each group is composed of 4 country/region that provided a ppt presentation in the Carbon Pricing Instruments Snapshot session, forming a pair ETS/Carbon Pricing as shown below. On a flip chart/board, each provides the elements as described below (content discussion). ● In clusters of equal numbers (depending on the participants in the room), participants will have a round of discussions of 20 minutes per group formed by countries/regions. After every round, participants move to the next group.
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Understanding ETS in practice: Simulation exercise
12:30 to 17:00o Josh Margolis, external senior expert, (ICAP)
In this exercise, participants will better understand price formation by engaging in a simulated auction and trading of allowances. *Participants require computers for this exercise.
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Global Carbon Pricing Challenge, example of collaboration in the region
17:00 to 17:15o TBC (GCPC Secretariat)
25 Jul 2024
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Session 1a: The Paris Agreement and the Article 6 Voluntary Cooperation towards NDC Achievement
09:30 to 09:45o Patrick Munyaneza, UNFCCC RCC Caribbean.
In this session, participants will better understand the context of the Paris Agreement, NDC ambition cycle and Article 6 Cooperation, including its main operational components: Article 6.2, Article 6.4 and Article 6.8 and be equipped with all necessary background knowledge to begin in-depth technical content on Article 6. -
Session 1b: Article 6 Participation Strategies
09:45 to 10:30o Ana Domínguez, UNFCCC RCC Latin America.
In this session, participants will gain an understanding of the requirements of participation and opportunities provided by Article 6 and be also prepared to engage in national level making decision around Article 6.
• Developing an Article 6 Strategy for Host Countries for Article 6.2 (15 min)
o Marlen Goerner, World Bank. -
Session 2a: Introduction to Article 6.2 Cooperative Approaches
10:00 to 11:30o Patrick, UNFCCC RCC Caribbean.
During this session, participants will learn how Article 6 governance and regulatory frameworks function and how countries are required to report on Article 6 action to the UNFCCC. In addition, about possible projects within Article 6.2 and the complete process including authorization, reporting, and the application of Corresponding Adjustments. -
Panel Discussion: Article 6 Framework Experience sharing with Host Countries from Latin America and Switzerland
11:30 to 12:45Moderator: Nathalie Flores, SBSTA Vice Chair.
Participants:
o Switzerland
o Chile
o Brazil (tbc)
o Perú
o Uruguay
o Klik FoundationPanel Discussion #1 (with Presentations if needed) (45 mins)
1. Why should we participate in Article 6.2?
2. What makes a good 6.2 project/initiative?
3. Eligibility criteria (Risk assessment and positive/negative list)
4. Authorization Process -
Session 2b: Tracking, Reporting, and Reviewing under Article 6 and linkage with Article 13 of the Paris Agreement
14:00 to 14:30o Ana Domínguez, UNFCCC RCC Latin America.
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Group Activity #1: Article 6 Strategy Game
14:30 to 15:30During this special interactive session, participants will experience through a game how countries must navigate synergies and tradeoffs between finance and mitigation objectives to decide the best eligible sectors for Article 6, applying concepts from the previous sessions on participation strategies.
o Patrick Munyaneza, UNFCCC Caribbean (Group Facilitator)
o Ana Domínguez, UNFCCC RCC Latin America (Group Facilitator)
o Laura Lasso De la Vega, UNFCCC Latin America (Group Facilitator)
o Ana Him, CCAP, (Group Facilitator) -
Session 2c: Simulated Exercise on Reporting and Accounting
15:45 to 18:00In this activity, participants will engage in a simulated exercise designed to practically illustrate the process of reporting and the application of corresponding adjustments.
Exercise will cover the following elements:
1. Initial Report
2. The Application of Corresponding Adjustments
3. Agreed Electronic Format
o Patrick Munyaneza, UNFCCC RCC Caribbean.
o Ana Dominguez, UNFCCC RCC Latin America
26 Jul 2024
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Session 2d: Simulation Exercises Presentation (Accounting and Reporting)
09:30 to 10:30o Patrick Munyaneza, UNFCCC RCC Caribbean
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Recap of Previous Day (what we learned)
10:30 to 10:45o Patrick Munyaneza, UNFCCC RCC Caribbean
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Session 3: Implementing the Paris Agreement Crediting Mechanism.
10:45 to 11:15This session will provide an overview of the operationalization of the new crediting mechanism established by Article 6.4 of the Paris Agreement such as objectives, A6.4 Units, Host Countries participation benefits and requirements, governance structure and regulations, A.64 activity cycle, CDM Transition and comparison between Article 6.2 and Article 6.4
• Ana Domínguez, UNFCCC RCC Latin America. -
Session 4: Host Countries Participation Requirements and Roles and Responsibilities from their DNAs
11:30 to 11:45Under the Article 6.4 Activity Cycle, Host countries are required to approved mitigation activities prior to their registration under the mechanism, this session will deep dive about how assess eligible sectors and technologies, the allocation of roles and responsibilities among government entities, among other specific task during the Article 6.4 Activity Cycle.
o Patrick Munyaneza, UNFCCC RCC Caribbean. -
Session 5: Article 6.8 Non-Markets Approaches
11:45 to 12:00This session will deliver an overview of Article 6.8, including its definition, purpose and an explanation of how it differs from the market-based approaches of Articles 6.2 and 6.4. It aims to provide participants with an increased awareness of non-market approaches and how they contribute to the goals of the Paris Agreement.
• Ana Domínguez, UNFCCC RCC Latin America. -
Extra Session: The Article 6 Readiness Assessment Report and Dashboard for Latin America
12:00 to 12:15o Ana Him, Center for Clean Air Policy (tbc)
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Wrap-Up (what we learned)
12:15 to 12:30 -
Event Closing Panel with the experts – CPA’a Carbon Pricing and Article 6 Workshop and REdiCAP
12:30 to 13:201. Javier Martínez, Co-Chair, Moderator
2. Jimy Ferrer, ECLAC
3. Marlen Goerner, World Bank
4. Victor Ortiz, ICAP
5. UNFCCC, TBC In this closing panel, there will be a round of questions addressed to all the experts who presented during -
Closing remarks
13:20 to 13:30o Javier Martínez, CPA Co-Chair
o Jimy Ferrer, Economic Affairs Officer, ECLAC
