CCXG Forum, September 2023, Key takeaways

OECD Environment
OECD EnvironmentOECD Environment
Climate Change
Expert Group
Key Takeaways from the
CCXG Global Forum on the Environment
and Climate Change
_____
12-13 September 2023
Delivering the mitigation work programme (MWP) - Accelerating
action through existing initiatives (I)
• The MWP could use its convening power to help amplify on-going efforts to accelerate
mitigation action across Parties, non-Party stakeholders (NPS) and relevant initiatives, and
thus avoid reinventing the wheel.
• The MWP could raise awareness of initiatives underway in different sectors to showcase what
is possible and available tools and solutions that could complement multilateral efforts.
This could help build momentum around relevant voluntary collaboration efforts and increase
engagement by interested actors without being prescriptive.
• Discussions through the MWP could also explore what is working well and what is not
currently working in the landscape of existing initiatives, and identify priority levers and
gaps at the global level. This could help to deliver more effective efforts through existing
initiatives, e.g. better consideration of social aspects.
Delivering the MWP - Accelerating action through existing
initiatives (II)
• Some existing initiatives in countries and regions are already supporting efforts to
accelerate a just energy transition, e.g., through technical assistance to enhance and
implement NDCs, exchanging best practices on coal phase-out, capacity building for renewable
energy projects, regional co-operation on grid integration.
• The MWP could provide a space to share countries’ experiences in specific areas of
accelerating a just energy transition and how engagement with relevant initiatives has helped
advance national priorities, e.g. phase-out fossil fuels and scale-up renewables.
• This could provide insights, including on challenges faced and context-specific
concerns, that could help replicate successful experiences in other parts of the world.
• The network provided by specific initiatives could also allow Parties to explore practical
opportunities (i.e. R&D) related to future MWP topics.
Potential elements of an annual decision on the MWP
• The MWP is currently the main facilitative dialogue space at the UNFCCC level, focusing on
urgently scaling up mitigation ambition and implementation and providing an opportunity to
maintain attention on the topic in this critical decade.
• The annual MWP decision could support learning-by-doing and play a signalling role with:
• Procedural elements, e.g. fine-tune and enhance planning of MWP Global Dialogues and
Investment-focused events, guidance on the scope and focus of related reports.
• Technical elements, e.g. invite exchanges on how to enhance ambition of NDCs and translate
global commitments/targets into national efforts, highlight opportunities to enhance international
collaboration, identify actionable solutions for unlocking finance and overcoming barriers to
access finance and investment opportunities.
• The MWP decision could identify synergies with relevant UNFCCC processes, e.g. invite MWP
events to take forward mitigation outcomes of the GST, identify potential topics for annual ministerial
roundtables on pre-2030 ambition, clarify complementarities with the just transition work programme.
Possible sources of finance for the NCQG on climate finance and
links to Article 2.1c
• The NCQG provides an opportunity to integrate and represent various sources of finance (public,
private, domestic, and international). Recognising that different sources play distinct roles in
addressing the financing shortfall for climate action in developing countries, it is essential for the
NCQG to reflect this multifaceted landscape and encourage the most effective and impactful use of
each source.
• The NCQG could be structured in a manner that contributes to creating incentives for scaling up
all sources of finance. In this way, the NCQG can provide a clear direction towards effectively
mobilising a more substantial pool of resources to address climate challenges in developing countries.
• The NCQG's success lies not only in the volume of finance but also in the quality, impacts and
alignment of this finance with the Paris Agreement’s goals, including Article 2.1c. To this end,
the NCQG could include a framework to encourage the alignment of both finance and public policies.
Dimensions of potential sub-targets for the NCQG on climate
finance
• If Parties will consider potential sub-targets for the NCQG, it is essential to strike a balance between
specificity and flexibility, to address identified gaps in the distribution and allocation of climate
finance and defined objectives while maintaining adaptability to changing priorities and challenges.
Overall, sub-targets may make the structure of the NCQG over-complex and challenge its
implementation.
• While top-down assessments of needs can provide strategic aggregate perspectives, sub-targets
would need to integrate bottom-up insights from individual countries and sectors. This would
ensure that targets are not only globally cohesive but also reflect national circumstances and capture
the diversity of needs.
• As possible alternatives to sub-targets, there is potential value in exploring the relevance of
qualitative approaches or indicators. These might offer a less rigid, more nuanced and adaptable
way to drive and measure progress.
Tracking progress towards the NCQG on climate finance
• The Paris Agreement's Enhanced Transparency Framework (ETF) holds the potential to be the
foundational source of information for the NCQG tracking system. However, the bottom-up
approach of the ETF may result in methodological differences and potential data discrepancies among
Parties.
• Depending on the agreed scope of the NCQG, some information (e.g. on private investments) may
not be available under the ETF. Thus, the Standing Committee on Finance remains instrumental
in integrating ETF data with other data sources and incorporating insights from a broader range of
stakeholders beyond the UNFCCC realm.
• Effective monitoring of the NCQG not only entails tracking climate finance but also assessing its
impacts. The ETF's mandate to report on the “impacts and results" of climate finance can be a pivotal
data source for such evaluations, notwithstanding some limitations in terms of methodological
differences and data gaps across Parties.
Lessons from other processes and initiatives for a Just
Transition Work Programme (JTWP)
• There is no “one-size-fits-all” approach to a just transition. Pathways towards achieving the goals
of the Paris Agreement must be carefully designed and tailored to the needs and priorities of different
countries, sectors and stakeholders.
• The JTWP could build on valuable knowledge, experiences and resources on just transition
within and outside the UNFCCC process, including work of the Katowice Committee of Experts on the
Impacts of the Implementation of Response Measures (KCI), and focus on addressing gaps (e.g. just
transition beyond the energy sector).
• The JTWP could serve as a platform for Parties and NPS to share insights on designing and
implementing just transition pathways to enable more ambitious national climate actions. The JTWP
could also provide a space to discuss progress on just transition efforts and for Parties to explore how
to concretely include just transition considerations in the next round of their NDCs.
Insights and experiences with enablers for just transition
pathways
• Just transition pathways are not only about reducing emissions but also about creating new jobs
and opportunities for people and communities in the transition.
• There are different enablers of just transition pathways at the international and domestic
levels. International enablers include financing, technology transfers and capacity building. Domestic
enablers are country-specific and entail a just transition policy framework or strategy, inclusive just
transition processes and investments in (re)skilling and job creation opportunities.
• Investment to support new job opportunities is key. Governments and businesses need to invest
in skills and infrastructure to support a just transition. This could, for instance, be by investing in
innovative public-private programmes and international collaboration initiatives such as Just Energy
Transition Partnerships (JETPs).
Towards a successful first global stocktake (GST1)
• GST1 needs to send a message of hope and unity that countries remain committed to the Paris
Agreement and are ready to rise to the challenge of addressing current gaps in order to meet its
long-term goals.
• Elements of a successful GST1 include:
• An honest recognition of gaps in different areas alongside reflections on current contexts
and available opportunities to reach common goals.
• Concrete, actionable responses to identified gaps and specific ways forward to inform
national actions and enhance international co-operation.
• It will be important that the GST1 outcome at COP28 instils a sense of ownership and buy-in
from all Parties and sends strong political signals within and beyond the UNFCCC process to
enable the needed course correction of collective efforts.
THANK YOU!
Climate Change
Expert Group
http://oe.cd/ccxg
1 of 11

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CCXG Forum, September 2023, Key takeaways

  • 1. Climate Change Expert Group Key Takeaways from the CCXG Global Forum on the Environment and Climate Change _____ 12-13 September 2023
  • 2. Delivering the mitigation work programme (MWP) - Accelerating action through existing initiatives (I) • The MWP could use its convening power to help amplify on-going efforts to accelerate mitigation action across Parties, non-Party stakeholders (NPS) and relevant initiatives, and thus avoid reinventing the wheel. • The MWP could raise awareness of initiatives underway in different sectors to showcase what is possible and available tools and solutions that could complement multilateral efforts. This could help build momentum around relevant voluntary collaboration efforts and increase engagement by interested actors without being prescriptive. • Discussions through the MWP could also explore what is working well and what is not currently working in the landscape of existing initiatives, and identify priority levers and gaps at the global level. This could help to deliver more effective efforts through existing initiatives, e.g. better consideration of social aspects.
  • 3. Delivering the MWP - Accelerating action through existing initiatives (II) • Some existing initiatives in countries and regions are already supporting efforts to accelerate a just energy transition, e.g., through technical assistance to enhance and implement NDCs, exchanging best practices on coal phase-out, capacity building for renewable energy projects, regional co-operation on grid integration. • The MWP could provide a space to share countries’ experiences in specific areas of accelerating a just energy transition and how engagement with relevant initiatives has helped advance national priorities, e.g. phase-out fossil fuels and scale-up renewables. • This could provide insights, including on challenges faced and context-specific concerns, that could help replicate successful experiences in other parts of the world. • The network provided by specific initiatives could also allow Parties to explore practical opportunities (i.e. R&D) related to future MWP topics.
  • 4. Potential elements of an annual decision on the MWP • The MWP is currently the main facilitative dialogue space at the UNFCCC level, focusing on urgently scaling up mitigation ambition and implementation and providing an opportunity to maintain attention on the topic in this critical decade. • The annual MWP decision could support learning-by-doing and play a signalling role with: • Procedural elements, e.g. fine-tune and enhance planning of MWP Global Dialogues and Investment-focused events, guidance on the scope and focus of related reports. • Technical elements, e.g. invite exchanges on how to enhance ambition of NDCs and translate global commitments/targets into national efforts, highlight opportunities to enhance international collaboration, identify actionable solutions for unlocking finance and overcoming barriers to access finance and investment opportunities. • The MWP decision could identify synergies with relevant UNFCCC processes, e.g. invite MWP events to take forward mitigation outcomes of the GST, identify potential topics for annual ministerial roundtables on pre-2030 ambition, clarify complementarities with the just transition work programme.
  • 5. Possible sources of finance for the NCQG on climate finance and links to Article 2.1c • The NCQG provides an opportunity to integrate and represent various sources of finance (public, private, domestic, and international). Recognising that different sources play distinct roles in addressing the financing shortfall for climate action in developing countries, it is essential for the NCQG to reflect this multifaceted landscape and encourage the most effective and impactful use of each source. • The NCQG could be structured in a manner that contributes to creating incentives for scaling up all sources of finance. In this way, the NCQG can provide a clear direction towards effectively mobilising a more substantial pool of resources to address climate challenges in developing countries. • The NCQG's success lies not only in the volume of finance but also in the quality, impacts and alignment of this finance with the Paris Agreement’s goals, including Article 2.1c. To this end, the NCQG could include a framework to encourage the alignment of both finance and public policies.
  • 6. Dimensions of potential sub-targets for the NCQG on climate finance • If Parties will consider potential sub-targets for the NCQG, it is essential to strike a balance between specificity and flexibility, to address identified gaps in the distribution and allocation of climate finance and defined objectives while maintaining adaptability to changing priorities and challenges. Overall, sub-targets may make the structure of the NCQG over-complex and challenge its implementation. • While top-down assessments of needs can provide strategic aggregate perspectives, sub-targets would need to integrate bottom-up insights from individual countries and sectors. This would ensure that targets are not only globally cohesive but also reflect national circumstances and capture the diversity of needs. • As possible alternatives to sub-targets, there is potential value in exploring the relevance of qualitative approaches or indicators. These might offer a less rigid, more nuanced and adaptable way to drive and measure progress.
  • 7. Tracking progress towards the NCQG on climate finance • The Paris Agreement's Enhanced Transparency Framework (ETF) holds the potential to be the foundational source of information for the NCQG tracking system. However, the bottom-up approach of the ETF may result in methodological differences and potential data discrepancies among Parties. • Depending on the agreed scope of the NCQG, some information (e.g. on private investments) may not be available under the ETF. Thus, the Standing Committee on Finance remains instrumental in integrating ETF data with other data sources and incorporating insights from a broader range of stakeholders beyond the UNFCCC realm. • Effective monitoring of the NCQG not only entails tracking climate finance but also assessing its impacts. The ETF's mandate to report on the “impacts and results" of climate finance can be a pivotal data source for such evaluations, notwithstanding some limitations in terms of methodological differences and data gaps across Parties.
  • 8. Lessons from other processes and initiatives for a Just Transition Work Programme (JTWP) • There is no “one-size-fits-all” approach to a just transition. Pathways towards achieving the goals of the Paris Agreement must be carefully designed and tailored to the needs and priorities of different countries, sectors and stakeholders. • The JTWP could build on valuable knowledge, experiences and resources on just transition within and outside the UNFCCC process, including work of the Katowice Committee of Experts on the Impacts of the Implementation of Response Measures (KCI), and focus on addressing gaps (e.g. just transition beyond the energy sector). • The JTWP could serve as a platform for Parties and NPS to share insights on designing and implementing just transition pathways to enable more ambitious national climate actions. The JTWP could also provide a space to discuss progress on just transition efforts and for Parties to explore how to concretely include just transition considerations in the next round of their NDCs.
  • 9. Insights and experiences with enablers for just transition pathways • Just transition pathways are not only about reducing emissions but also about creating new jobs and opportunities for people and communities in the transition. • There are different enablers of just transition pathways at the international and domestic levels. International enablers include financing, technology transfers and capacity building. Domestic enablers are country-specific and entail a just transition policy framework or strategy, inclusive just transition processes and investments in (re)skilling and job creation opportunities. • Investment to support new job opportunities is key. Governments and businesses need to invest in skills and infrastructure to support a just transition. This could, for instance, be by investing in innovative public-private programmes and international collaboration initiatives such as Just Energy Transition Partnerships (JETPs).
  • 10. Towards a successful first global stocktake (GST1) • GST1 needs to send a message of hope and unity that countries remain committed to the Paris Agreement and are ready to rise to the challenge of addressing current gaps in order to meet its long-term goals. • Elements of a successful GST1 include: • An honest recognition of gaps in different areas alongside reflections on current contexts and available opportunities to reach common goals. • Concrete, actionable responses to identified gaps and specific ways forward to inform national actions and enhance international co-operation. • It will be important that the GST1 outcome at COP28 instils a sense of ownership and buy-in from all Parties and sends strong political signals within and beyond the UNFCCC process to enable the needed course correction of collective efforts.
  • 11. THANK YOU! Climate Change Expert Group http://oe.cd/ccxg