International Centre for Trade and Sustainable Development
International Environment House 2 Chemin de Balexert 7-9 1219 Châtelaine Geneva Switzerland
Phone: +41 22 917 84 92 Fax: +41 22 917 80 93 Email: email@example.com
This meeting is a briefing for the Brussels policy stakeholder community on developments on carbon markets in the UNFCCC negotiations.
Article 6 of the Paris Agreement addresses the issue of “cooperative approaches” under the new climate regime. A significant part of it creates the framework to ensure that international markets can be a tool to meet Nationally Determined Contributions (NDCs) under the Paris Agreement.
After COP 21 in Paris, negotiators have a mandate to create a rulebook to ensure that this, and other parts of the climate agreement, become operational. With the agreement entering into force sooner than many had anticipated, negotiators are aiming for completing this task in 2018 at COP 23, which will take place in Poland.
This meeting is an opportunity for stakeholders to be briefed by some of the most knowledge participants in these negotiations to understand the state of play, the main issues, and implications for the market and EU climate change policy. There will be a number of presentations, followed by a moderated roundtable discussion.
The world has come together in an unprecedented effort to tackle global warming.
Following the historic adoption of the Paris Climate Agreement in December 2015, governments embarked on a ratification race which lead to the deal’s entry into force in November 2016. The speed of this process shows the world’s commitment to tackle the tremendous environmental, economic and social risks climate change poses, including for sustainable growth and development.
Countries must now put their words into action by following up with ambitious climate measures and they must do so immediately. According to the Intergovernmental Panel on Climate Change, the window of opportunity to act is shrinking, with global emissions having to drop by 40 to 70 percent between 2010 and 2050 and falling to zero or below by 2100 to have a good chance of staying below 2°C.
Successfully responding to this challenge will require supportive policies across many areas. Trade frameworks and policies that help drive the transition to a low-carbon economy will be crucial in this regard. Measures to achieve this range from trade liberalisation for climate-friendly goods and services to phasing out inefficient fossil fuel subsidies or providing space for climate-friendly subsidies.
At the same time, it is important to address countries’ concerns about how climate measures, including those implemented by others, may impact their economies and the competitiveness of their industry. Such considerations are likely to intensify under the decentralised nature of the new climate regime where each country determines its own level and type of climate contributions, expressed through nationally determined contributions (NDCs). In this context, climate measures are also expected to increasingly probe the limits of trade rules. If such concerns are not adequately dealt with, they risk undermining climate goals.
In light of the new climate architecture and the need to significantly scale up action, it is important to take a fresh look at the climate-trade interface. The dialogue will therefore explore key interactions between trade and the implementation of the Paris Agreement to inform more coherent policy-making where the potential for trade to positively contribute to the climate action effort is realised, while ensuring that climate measures do not unnecessarily distort trade but rather promote an open economic system that contributes to sustainable, equitable and inclusive development.
Global Rules for Mutually Supportive and Reinforcing Trade and Climate RegimesCarbon Market Clubs under the Paris Climate Regime: Climate and Trade Policy ConsiderationsClimate Change and Clean Energy in the 2030 Agenda: What Role for the Trade System?The Relevance of the Environmental Goods Agreement in Advancing the Paris Agreement Goals and SDGs: A Focus on Clean Energy and Costa Rica’s ExperienceBridges Special Update #3 | At Marrakech Climate Talks, Universal Pledge to Ramp Up "Irreversible" MomentumBridges Special Update #2 | UN Climate Negotiators Press On, As Questions Loom for Incoming Trump AdministrationBridges Special Update #1 | As Paris Agreement Goes Live, Focus Shifts to Implementation
COP 22 had the potential to significantly push the processes surrounding the Paris Agreement to a higher gear and create more clarity on what can be expected on the international level in the coming years.
During this session, participants will review the main outcomes of the Marrakech COP, and especially how they relate to ongoing EU policy processes and the impact of the US election on international cooperation.
Climate change poses tremendous risks for growth and development and therefore requires ambitious and immediate action.
The Paris Agreement represents an unprecedented commitment to tackle the climate challenge: Its signatories aim to peak emissions as soon as possible and to decarbonise the global economy in the second half of the century.
However, its success will require supportive policies across many areas. Trade frameworks that support the transition to a low-carbon economy will be key. Policies to achieve this range from trade liberalisation for climate-friendly goods and services to phasing out inefficient fossil fuel subsidies or providing space for climate-friendly subsidies.
At the same time, the decentralised nature of the new climate agreement built on NDCs will likely generate increasing spillover effects on trade and in some cases test the limits of trade rules, which in turn may undermine climate goals. Recent political developments further add uncertainty about the levels of mitigation action that can be expected.
This dialogue will explore key interactions between trade and the implementation of the Paris Agreement in the post-Marrakesh context to drive more coherent policy-making where the potential for trade to positively contribute to the climate action effort is realised, while ensuring that climate measures do not unnecessarily distort trade but rather promote an open economic system that contributes to sustainable, equitable and inclusive development.
The panel focused on climate change negotiations and how they relate to international trade. It reviewed developments since COP 21 in Paris, and whether 2016 has started to confirm the high expectations that everyone had after concluding the Paris Agreement.
It also discussed what is needed from the upcoming COP 22 in Marrakech to maintain the momentum, and what it can be realistically expected to deliver.
Andrei Marcu, Director ERCST, Senior Fellow, ICTSD
Tomasz CHRUSZCZOW, Chair of Subsidiary Body for Implementation
Dirk FORRISTER, CEO, IETA
Ricardo MELÉNDEZ-ORTIZ, Chief Executive, ICTSD
Jo TYNDALL, Chair of the Ad Hoc Working Group on the Paris Agreement (APA)
Paul WATKINSON, Chief negotiator and head of climate negotiations team, Ministry of environment, energy and the sea
Jakob WERKSMAN, Principal Adviser, Directorate General for Climate Action, EC; EU Lead Negotiator
This panel was the inaugural event of the European Roundtable on Climate and Sustainable Transition (ERCST). It is an initiative of the International Centre for Trade and Sustainable Development, in association with a number of EU thinks tanks.
This initiative provides a neutral space where policymakers and regulators can meet stakeholders, and discuss climate change policy and a sustainable transition to a low GHG economy. While focused on European climate policy, this initiative intends to fully recognise, and incorporate in its activities and thinking, the global dimension of climate change policy.
Based in Brussels, The European Roundtable on Climate and Sustainable Transition aims to provide rigorous intellectual analysis, stemming from the experience and input of its staff, as well as other research available, and the input of the stakeholders who join its activities.