- The 7th Asia Forum for Clean Energy Financing (AFCEF-7) was held on 10 Feb 2017 in Singapore
- PFAN events at the COP 22 in Marrakesh
- CTI PFAN Organized the AFCEF-7 Project Development & Financing Workshop
- International climate community discusses how to unlock the Paris Agreement’s potential for market-based approaches
- CTI side event at UNFCCC Forty-fourth meeting of the Subsidiary Bodies – SB44 Bonn, Germany May 26, 2016
MARKET MECHANISMS FOR CLIMATE ACTION AT THE URBAN LEVEL Berlin, Germany: May 7 & 8, 2015
On 7-8 May, more than 70 experts from 27 countries met in Berlin for the 15th Climate Technology Initiative (CTI) Workshop to discuss the relevance of market mechanisms for climate change mitigation in cities. The German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) had organised the workshop which provided a platform for exchange for policy experts, decision-makers, scientists and representatives of financial institutions who work on mitigation at the urban level and market-based climate instruments.
This year’s CTI Workshop topic “Market Mechanisms for Climate Action at the Urban Level” applied the perspective of market-based climate instruments to the city level. In addition to considering integrated climate action in cities, the workshop focused on the sectors buildings and construction, transport as well as waste and the question how market mechanisms are being applied or can be applied in these sectors in the future to reduce greenhouse gas (GHG) emissions effectively and sustainably.
One of the event’s main insights was that particularly carbon market mechanisms can be relevant for mitigation actions in cities; their comprehensive implementation at the urban level depends to a great extent on the outcomes of the upcoming COP in Paris. At the moment, the low price for emissions certificates is the main barrier for a more extensive use of carbon market mechanisms; this also holds true for the city context.
On the first workshop day, Franzjosef Schafhausen welcomed all participants on behalf of BMUB. He was particularly delighted about the participation of eleven members of the CTI Executive Committee in the morning session of the first day of the event. Their participation was possible because the biannual meeting of the Committee took place in Berlin at the same time.
In the opening panel discussion of the CTI Workshop two experts on market mechanisms joined two experts from the field of climate action in cities. The panel came to the conclusion that cities require more autonomy and competencies for implementing climate change mitigation measures that apply market mechanisms. Further, the panellists saw a significant potential for integrated approaches to climate actions at the city level that (i) combine mitigation and adaptation; and (ii) interlink horizontally with other city actors and initiatives as well as vertically with national initiatives. Apart from the upcoming COP in Paris they also pointed to the relevance of the HABITAT III Conference in Quito in 2016 that is also likely to give new impetus to climate change mitigation action at the city level.
This initial session was followed by a session dealing with the various types of market based instruments for climate change mitigation. After the presentation of different instruments such as the Clean Development Mechanisms (CDM), Urban Emission Trading Schemes or New Market Mechanisms, the speakers discussed the relevance of these instruments for the city level. They highlighted the importance of market mechanisms’ co-benefits for the urban level. For instance, non-quantifiable impacts such as a reduction in noise pollution or increased road safety can be stronger arguments for certain measures in the transport sector than emission reductions alone. To meet those specific challenges in the urban context, new methodologies need to be developed and applied. Moreover, Monitoring, Reporting and Verification (MRV) standards need to be harmonised with the specific requirements of the urban level. Finally, the panellists pointed to the fact that the selection of a specific instrument for mitigation actions always depends on the respective local conditions.
The following session on market based mechanisms in the urban context clearly showed that some initiatives for mitigation actions at the city level already exist, while the application of market mechanisms is still in its infancy. Promoting their application is the mandate of various support programmes that commit themselves to the application of market mechanisms or the support of cities in their efforts for climate change mitigation in general. The last session of day 1 of the CTI Workshop was dedicated to these support programmes.
At the end of the first day, the participants summarised that co-benefits are an important aspect of market mechanisms at the urban level; developing countries may not yet be ready to comprehensively apply market mechanisms due to a lack of capacities; and more clarity on the specific advantages of market mechanisms in the urban context would be desirable.
The second day of the Workshop focused on the urban sectors building and construction, transport, and waste. In three sessions the speakers presented projects, programmes and initiatives that apply market mechanisms in the respective sectors or show potential for such application. In all sectors, data collection, the establishment of baselines and the MRV of emission reductions continue to be key challenges.
At the end of the Workshop Lydia Ondraczek from BMUB thanked all participants for their interesting contributions and discussions during the workshop. She also expressed the wish to stay in touch with the participants on questions related to market mechanisms in the urban context after the end of the workshop – with the CTI Workshop Newsletter being an option for continued interaction and exchange throughout the year.