Transcript Presentation

Addressing double counting
of mitigation for
diverse contribution types
Christina Hood (IEA)
Presentation to SBSTA
8 June 2014
Climate Change Expert Group
www.oecd.org/env/cc/ccxg.htm
OECD/IEA papers on UNFCCC emissions
accounting options
Concepts relevant pre- and post-2020
2
Climate Change Expert Group
Outline
 Double counting of mitigation
 Mitigation transfers with single-year
targets
 Potential rules/criteria for “opt-in” to
use of market or non-market mitigation
transfers
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Climate Change Expert Group
Outline
 Double counting of mitigation
 Mitigation transfers with single-year
targets
 Potential rules/criteria for “opt-in” to
use of market or non-market mitigation
transfers
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Climate Change Expert Group
Which transfers matter for accounting?
 Two conditions under which transfers of mitigation
matter for UNFCCC accounting:
“Used” by a Party as counting
directly towards a contribution
under UNFCCC
+
Originating outside the boundary
of that contribution
(geographic, scope or temporal)
 Could include credits (offsets), allowance units
from domestic emissions trading systems, or nonmarket transfers
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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 claimed by two jurisdictions
 “Double coverage” of transferred mitigation by GHG
and non-GHG targets leading to double counting
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Climate Change Expert Group
Double Counting Solutions
Double Issuance Strong governance of mechanisms for
environmental integrity
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Double Selling
Robust registry/tracking
arrangements
Double claiming
between GHG
targets
GHG/Non-GHG
double coverage
Understand by tracking/reporting
transfers
Prevent by rules/criteria
Understand by tracking/reporting
transfers
Climate Change Expert Group
Double claiming example
-10Mt
Party A
Inventory
granularity?
-------Emissions 100Mt
90Mt
10Mt
Party B
Emissions 100Mt
-------110Mt
 Emissions inventory total = 90+110 = 200Mt
 If Party A DOES NOT account for export but
party B DOES account for import, then declared
total = 90+100 = 190Mt
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Climate Change Expert Group
What do Parties want to “prevent” ?
1. Prevent double counting in aggregate ex post
reconciliation of total mitigation ?
 track actual unit and non-market use
Enables understanding of double claiming to prevent double
counting of aggregate emissions reductions
2. Also prevent or limit double counting in ex ante estimates
of expected mitigation ?
 requires rules for market or non-market use
e.g. quantitative limits on use of transferred mitigation
from jurisdictions that do not account for unit flows (i.e.
limit double claiming)
 e.g. GHG goals must account for unit flows (i.e. prevent
double claiming)

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Climate Change Expert Group
Double counting via “double coverage”
of GHG/non-GHG targets
Party A
Party B
How double counting could arise
Quantified
GHG
target
Renewable If renewable energy target delivered in part by
energy
crediting mechanism (with units sold to Party A),
(capacity) could be double counting of mitigation.
Renewable Renewable With trade of green certificates between Party A
energy
energy
and B, there is potential for double counting if
(transfers) (capacity) one Party accounts for the transfers and the
other doesn’t.
Quantified
GHG
target
Production If electricity is exported from Party B to Party A
of clean
via grid interconnection, the mitigation could be
electricity counted by both Parties.
Understand by tracking/reporting transfers
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Climate Change Expert Group
Outline
 Double counting of mitigation
 Mitigation transfers with single-year
targets
 Potential rules/criteria for “opt-in” to
use of market or non-market mitigation
transfers
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Climate Change Expert Group
Multiple-year target
Annual unit
purchases
Actual reported inventory emissions
2030
inventory
100Mt
90Mt
80Mt
2030 target
2020
2025
2030
 Multi-year target avoids risk that emissions in single
target year are unrepresentative of general trend
 Facilitates use of market mechanisms
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Climate Change Expert Group
Single-year target
Actual reported inventory emissions
2030
inventory
100Mt
90Mt
80Mt
2020
2030 target
2025
2030
 Ex ante uncertainty over total emissions due to unknown
path to target
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Climate Change Expert Group
Single-year target
2030
inventory
100Mt
90Mt
80Mt
2020
14
2030 target
2025
2030
 Ex ante uncertainty over total emissions due to unknown
path to target
 Ex ante uncertainty amplified by use of units in target year
 Gets complex
when we think about “vintages” of units
Climate Change Expert Group
Options for use of mitigation transfers
with single year targets
Report unit use • allows ex-post reconciliation
• poor ex-ante estimation
• Reduces ex-ante uncertainty
Quantitative
limit
• Impractical (supply ongoing)
Target year
• Prone to gaming (Scneider et al.)
vintage only
Only units from • If units are retired for multi-year
goals (e.g. domestic ETS), then ok
ongoing action
Disallow
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• Only continuous multiyear goals can
use transferred mitigation
Climate Change Expert Group
Outline
 Double counting of mitigation
 Mitigation transfers with single-year
targets
 Potential rules/criteria for “opt-in” to
use of market or non-market mitigation
transfers
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Climate Change Expert Group
Packages of rules for Parties “opting in” to
use of market or non-market transfers
1.Transparency
•Ex
post reporting of flows*
Ex-ante clarity on
expected
•Provide
ex ante estimate of expected flows
total abatement and
national
Approach
goals
•Ex post reporting of flows
•Provide ex ante estimate of expected flows
•Quantitative limit on units issued by Parties with
2. Enhanced
GHG goals that do not account for flows.
clarity
•Units in single-year targets must be reflective of
continuous action
3. Avoidance
of double
claiming
•Ex post reporting of flows
•Provide ex ante estimate of expected flows
•GHG based contributions must account for flows,
must be multi-year.
*flows = issuance, retirement, transfers, banking
[PLUS: governance of systems, registry and tracking arrangements]
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Climate Change Expert Group
Thank you for your attention
GHG or not GHG: Accounting for
diverse mitigation contributions in
the post-2020 climate framework
Christina Hood ([email protected])
Gregory Briner ([email protected])
Marcelo Rocha
www.oecd.org/env/cc/ccxg.htm
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Climate Change Expert Group