1. Climate Change Expert Group www.oecd.org/env/cc/ccxg
GHG or not GHG:
Accounting for diverse mitigation
contributions in the post-2020 climate
framework
Christina Hood (IEA)
Based on the draft discussion paper by C. Hood, G. Briner and M. Rocha
CCXG Global Forum
19 March 2014, Breakout Group B
2. 2 Climate Change Expert Group
Session 2 (11.30-13h)
๏ฌDouble counting of mitigation
๏ตForms of double counting
๏ตExamples of double claiming
๏ฌSingle-year targets and mitigation transfers
๏ฌOptions for โopt-inโ rules for use of market or
non-market mitigation transfers
3. 3 Climate Change Expert Group
Which transfers matter for accounting?
๏ฌ Two conditions under which transfers of mitigation
outcomes matter for UNFCCC accounting:
๏ฌ Could include credits (offsets), allowance units from
domestic emissions trading systems, or non-market
transfers of mitigation outcomes
โUsedโ by a Party as counting
directly towards a contribution
under UNFCCC
Originating outside the boundary
of that contribution
(geographic, scope or temporal)
+
4. 4 Climate Change Expert Group
Double counting of mitigation
๏ฌ โDouble issuanceโ = more than one unit issued for the
same emissions reductions.
๏ฌ โDouble sellingโ or โdouble retirementโ = same unit used
more than once towards emissions obligations
๏ฌ โDouble claimingโ against pledges/targets = same
mitigation outcome claimed by two jurisdictions
5. 5 Climate Change Expert Group
Examples of double claiming
Party A Party B How double claiming could arise
Quantified
GHG
GHG
inventory
Credit units generated in Party B are sold to Party A.
Emissions reductions could be counted by both.
6. 6 Climate Change Expert Group
Examples of double claiming
Party A Party B How double claiming could arise
Quantified
GHG
GHG
inventory
Credit units generated in Party B are sold to Party A.
Emissions reductions could be counted by both.
Quantified
GHG
Renewable
energy
capacity
If renewable energy target delivered in part by
crediting mechanism (with units sold to Party A),
could be double-counting of GHG reductions.
7. 7 Climate Change Expert Group
Examples of double claiming
Party A Party B How double claiming could arise
Quantified
GHG
GHG
inventory
Credit units generated in Party B are sold to Party A.
Emissions reductions could be counted by both.
Quantified
GHG
Renewable
energy
capacity
If renewable energy target delivered in part by
crediting mechanism (with units sold to Party A),
could be double-counting of GHG reductions.
Renewable
energy
(transfers)
Renewable
energy
(capacity)
With trade of green certificates between Party A and
B, there is potential for double-counting if one Party
accounts for the transfers and the other doesnโt.
8. 8 Climate Change Expert Group
Examples of double claiming
Party A Party B How double claiming could arise
Quantified
GHG
GHG
inventory
Credit units generated in Party B are sold to Party A.
Emissions reductions could be counted by both.
Quantified
GHG
Renewable
energy
capacity
If renewable energy target delivered in part by
crediting mechanism (with units sold to Party A),
could be double-counting of GHG reductions.
Renewable
energy
(transfers)
Renewable
energy
(capacity)
With trade of green certificates between Party A and
B, there is potential for double-counting if one Party
accounts for the transfers and the other doesnโt.
Quantified
GHG
Production
of clean
electricity
If electricity is exported from Party B to Party A via
grid interconnection, the GHG reductions could be
counted by both Parties.
9. 9 Climate Change Expert Group
What do Parties want to โpreventโ?
1. Prevent double counting in ex post reconciliation of
actual transfers ?
๏ requires tracking of actual unit or non-market
transfers
2. Also prevent double counting in ex ante estimates of
expected mitigation from national contributions ?
๏ requires restrictions on what types of contributions
can use market or non-market transfers
10. 10 Climate Change Expert Group
Contributions defined as
single-year or multiple-year targets
Multiple Year Target 2020-30
๏ฌ Multi-year target avoids risk that emissions in single
target year are unrepresentative of general trend
100Mt
20302020
90Mt
80Mt
2025
2030 target
Annual unit
purchases
2030
inventory
Actual reported inventory emissions
11. 11 Climate Change Expert Group
Contributions defined as
single-year or multiple-year targets
100Mt
20302020
90Mt
80Mt
2025
2030 target
2030
inventory
Actual reported inventory emissions
๏ฌ Total emissions and abatement less certain ex-ante
๏ฌ Gets complex when we think about โvintagesโโฆ
12. 12 Climate Change Expert Group
Ex-ante clarity on expected total
abatement and national goals
3. Avoidance
โขEx post reporting of flows
โขProvide ex ante estimate of expected flows
โขGHG based contributions must account for flows, must be
multi-year.
โขEx post reporting of flows
โขProvide ex ante estimate of expected flows
โขQuantitative limit on units from Parties that do not account
for flows.
โขUnits in single-year targets must be reflective of continuous
action
โขEx post reporting of flows*
โขProvide ex ante estimate of expected flows
Options for โopt inโ to use of market or non-
market transfers
2. Enhanced
clarity
1. Transparency
*flows = issuance, retirement, transfers, banking
[PLUS: governance of systems, registry and tracking arrangements via FVA]
13. 13 Climate Change Expert Group
Questions for discussion
๏ฌ Should double counting be prevented from occurring ex ante,
or only during ex post reconciliation of GHG emission levels
and unit transfers?
๏ฌ If only Parties with certain types of contributions can โopt inโ
to use of market or non-market transfers, how can this be
reconciled with existing participation in CDM or other market
mechanisms?
๏ฌ To prevent โdouble claimingโ between GHG and a non-GHG
contributions, should Parties with non-GHG contributions have
to adjust their reported outcomes?