2. 2
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Trigger and recording โ same or different?
Options considered for the trigger of adjustments
โ First transfer and use
โ Transfer and acquisition
But in which calendar year are adjustments recorded in
structured summaries?
โ Same calendar year as the trigger: year of (first) transfer, acquisition
or use
โ Or a different year?
Trigger and recording of adjustments โLambert SchneiderโParisโ1-2 October 2019
3. 3
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Recording adjustments in the year of transfer
- Adjusted emissions balance not fully
representative of action over time
- Implicit โborrowingโ possible: MO used
in 1st NDC period, but adjustment
applied in 2nd NDC period
- Not well compatible with the single-
year accounting option of using only
the โsame vintageโ (e.g. because
credits are issued ex-post)
+ No need to determine when mitigation
outcome took place
+ No need to go โbackwardsโ in
accounting
Trigger and recording of adjustments โLambert SchneiderโParisโ1-2 October 2019
MO
Mitigation
outcome
takes place
Mitigation
outcome
transferred
Emissions
AdjEmissions
Emissions
2029 20312030
Adjusted emissions
1st NDC period 2nd NDC period
4. 4
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Recording adjustments in year of mitigation outcome
+ Adjusted emissions balance
representative
+ No implicit โborrowingโ possible
+ Compatible with single-year accounting
options of using only the โsame
vintageโ
- Necessary to determine when
mitigation outcome took place
- Timing issues for final accounting
balance in 2032: how to deal with a
2030 mitigation outcome that is
transferred in 2035?
Trigger and recording of adjustments โLambert SchneiderโParisโ1-2 October 2019
MO
Adj
Mitigation
outcome
takes place
Mitigation
outcome
transferred
Emissions
Emissions
Emissions
2029 20312030
Adjusted emissions
1st NDC period 2nd NDC period
5. 5
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How to apply adjustments for CORSIA?
Option A in 6.2 text: โWhere a Party expressly authorizes the
use of mitigation outcomes, for a purpose other than towards an
NDC, this guidance shall apply to such mitigation outcomes,
whether or not they have been internationally transferredโ
But what would constitute a โtransferโ in the context of CORSIA?
โข A Chinese airline could implement its own project in China
and issue and cancel CCERs
โข What should trigger the application of adjustments and in
which years should they be recorded in structured
summaries?
Trigger and recording of adjustments โLambert SchneiderโParisโ1-2 October 2019
6. 6
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Multiple options โ multiple outcomes: example
Trigger and recording of adjustments โLambert SchneiderโParisโ1-2 October 2019
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Total
Trigger for CORSIA offset adjustment
[A] Authorization X
[B] Issuance X X X
[C] Cancellation X X X
Application of adjustments to calendar years
[A0] Adjustments triggered by
authorization and applied ex-ante
over the authorized time period
10 10 10 10 10 10 10 70
[B1] Adjustments triggered by
issuance and applied to when the
emission reductions occurred
5 10 8 10 9 10 10 62
[B2] Adjustments triggered by
issuance and applied to the year of
issuance
15 27 20 62
[C1] Adjustments triggered by
cancellation and applied to when the
emission reductions occurred
3.4 6.8 5.4 6.8 6.1 6.8 6.8 42
[C3a] Adjustments triggered by
cancellation and applied to the year
of cancellation
6 12 24 42
[C3b] Adjustments triggered by
cancellation and applied to the
relevant CORSIA compliance period
2 2 2 4 4 4 8 8 8 42
[C3c] Adjustments triggered by
cancellation and applied to the year
of the surrendering report
6 12 18
7. 7
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Conclusions
Work program or negotiation text could provide clarity on:
1. To which years adjustments should be recorded in structured
summaries, in particular for transferring countries:
โ Year of transfer
โ Year when mitigation outcome took place
2. Trigger for adjustments in the context of CORSIA:
โ Authorization (ex-ante for a project or ex-post for issued credits?)
โ Issuance of credits
โ Cancellation of credits by airlines
Trigger and recording of adjustments โLambert SchneiderโParisโ1-2 October 2019
8. www.oeko.de
Thank you for your attention!
Lambert Schneider
Research Coordinator for
International Climate Policy
รko-Institut e.V.
Berlin Office
l.schneider@oeko.de