This document summarizes a presentation given at a climate change expert group meeting in March 2016. It discusses challenges related to accounting for climate mitigation efforts under the Paris Agreement, including avoiding double counting emissions reductions between countries. Two key challenges are the greater variety of emission reduction unit flows between countries and different types of nationally determined contribution targets. The document outlines potential solutions discussed, including developing strong governance and tracking systems to ensure environmental integrity and prevent double counting. It also notes relevant articles and decisions from the Paris Agreement calling for guidance to be developed on accounting, transparency and tracking international transfer of mitigation outcomes.

1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Transparency and accounting
in the Paris Agreement:
Internationally Transferred
Mitigation Outcomes
Christina Hood (IEA)
CCXG Global Forum on the Environment
March 2016

2. 2 Climate Change Expert Group
When do units matter for UNFCCC
accounting?
 Two conditions under which units matter for UNFCCC
accounting:
“Used” by Party as counting
directly towards NDC
Originating outside the
boundary of the target
(geographic, scope or temporal)
+

3. 3 Climate Change Expert Group
Challenges:
1. Greater variety of unit flows
 Different types of units (crediting, ETS)
 Arising inside/outside NDCs
 Multi-directional flows
2. Greater variety of NDC types
 GHG: absolute, GDP-linked, baseline
 Non-GHG: renewable, energy efficiency targets
 Policies and Measures
+ single and multi-year targets

4. 4 Climate Change Expert Group
Solutions
Double Issuance Strong governance of mechanisms for
environmental integrity
Double Selling Robust registry/tracking
arrangements
Double claiming
between GHG
targets
Accounting rules / guidance to
prevent double claiming
GHG/Non-GHG
double coverage
Tracking/reporting ITMO transfers for
all NDC types. Guidance on reporting
GHG impacts of non-GHG targets and
policies
Double counting of mitigation

5. 5 Climate Change Expert Group
Article 13: Transparency
Article 13.7
Each Party shall regularly provide […] information
necessary to track progress made in implementing and
achieving its NDC
Decision para 92
Requests the APA […] to take into account, inter alia,
 The need to ensure that double counting is avoided
 The need to ensure environmental integrity
Decision para 98
Shall […] supersede the MRV system established by
1/CP.16, immediately following the submission of final
BRs and BURs

6. 6 Climate Change Expert Group
Article 4: Mitigation
Article 4.13
Parties shall account for their NDCs. In accounting […]
Parties shall promote environmental integrity, transparency,
accuracy, completeness, comparability and consistency,
and ensure the avoidance of double counting, in
accordance with guidance adopted by the CMA.
Decision para 31
Requests the APA to elaborate […] guidance […] which
ensures that:
 Parties account […] in accordance with methodologies
and common metrics assessed by the IPCC
 Parties ensure methodological consistency […] between
the communication and implementation of NDCs

7. 7 Climate Change Expert Group
Article 6: Voluntary cooperation
Article 6.2
Parties shall, where engaging […] in approaches that
involve the use of internationally transferred mitigation
outcomes towards NDCs, promote sustainable
development and ensure environmental integrity and
transparency, including in governance, and shall apply
robust accounting to ensure, inter alia, the avoidance of
double counting, consistent with guidance adopted by the
CMA
Decision para 36
Requests the SBSTA to develop […] the guidance referred
to […] including guidance to ensure that double counting
is avoided on the basis of a corresponding adjustment

8. 8 Climate Change Expert Group
Discussion Questions
1. What are the main conceptual issues
that need further discussion for
accounting rules to be developed?
2. How could the work programmes on
transparency, accounting for NDCs, and
accounting for ITMOs be co-ordinated?