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CCXG Forum, March 2023, Jacqueline Ruesga

  1. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Authorisation Under Article 6 OECD-IEA CCXG Global Forum 1 Jacqui Ruesga
  2. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE • Progress since COP26 • Mandate from COP27 • Authorisation in 6.2 vs 6.4 • Remaining questions 2
  3. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Some questions have been resolved since COP27- 3 Process o We know it to be a ‘statement’ o We know a copy is to be provided with the Initial Report o We do not have guidance on what else is included Timing options o Authorisation prior to first transfer/transfer o Authorisation prior to/at the time of issuance (in 6.4 mechanism) (as now noted in para 38 of the Sharm text)
  4. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Mandate/ Work programme from COP27 4 • The process of authorization pursuant to decision 2/CMA.3, annex, paragraphs 2, 18(g) and 21(c), notably the scope of changes to authorization of internationally transferred mitigation outcomes towards use(s), and the process for managing them and for authorization of entities and cooperative approaches with a view to ensuring transparency and consistency; • The application of decision 2/CMA.3, annex, paragraph 2, on mitigation outcomes authorized by a participating Party for use towards achievement of a nationally determined contribution and for other international mitigation purposes in accordance with decision 2/CMA.3, annex, paragraph 1(d) and (f); • The common nomenclature referred to in annex I, chapter II.B, including for cooperative approaches reported by participating Parties, first transferring Party, sectors, activity types, non-greenhouse gas metrics and their units of measurement, registries that track internationally transferred mitigation outcome from cooperative approaches and action types; first transfer specifications; and purposes towards which use of internationally transferred mitigation outcomes is authorized; 6.2
  5. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Mandate/ Work programme from COP27 5 • Provision of a statement by the host Party to the Supervisory Body specifying whether it authorizes Article 6, paragraph 4, emission reductions issued for an Article 6, paragraph 4, activity for use towards achievement of nationally determined contributions and/or for other international mitigation purposes, as defined in decision 2/CMA.3, in accordance with paragraph 42 of the rules, modalities and procedures, including its timing, relevant information on the authorization and any revisions. 6.4
  6. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Relationship between authorisation in 6.2 and 6.4 6
  7. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Implications of different possible changes of authorisations by Parties 7 o Host country determination to decide o Retrospective changes ▪ Changes are ‘permissible’ per para 21(c ) of Decisions 2CMA.3 ▪ Impacts to SOP and OMGE (paras 35-45 of Sharm text) ▪ Stability/ predictability of market
  8. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Remaining Questions 8 • Set authorization criteria ( to be determined by cooperating parties) • Format of authorization relatively irrelevant • Domestic process for authorization by host party –requires capacity building • Big question of timing has been answered • Parties to add change/revision procedures to their cooperation agreement?
  9. STAFF IN-CONFIDENCE STAFF IN-CONFIDENCE Climate Business Group Decision Document Thank You 9
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