1887

OECD/IEA Climate Change Expert Group Papers

This series is designed to make available to a wider readership selected papers on climate change issues that have been prepared for the OECD/IEA Climate Change Expert Group (CCXG). The CCXG (formerly called the Annex I Expert Group) is a group of government delegates from OECD and other industrialised countries. The aim of the group is to promote dialogue and enhance understanding on technical issues in the international climate change negotiations. CCXG papers are developed in consultation with experts from a wide range of developed and developing countries, including those participating in CCXG Global Forums.

The full papers are generally available only in English.

The opinions expressed in these papers are the sole responsibility of the author(s) and do not necessarily reflect the views of the OECD, the IEA or their member countries, or the endorsement of any approach described therein.

English

Crossing the Threshold: Ambitious Baselines for the UNFCCC New Market-Based Mechanism

At COP 17 in Durban, countries defined a new market-based mechanism to promote cost-effective mitigation actions, guided by a set of principles previously agreed at COP 16. These principles include “stimulating mitigation across broad segments of the economy”, “ensuring a net decrease and/or avoidance of global greenhouse gas emissions” and “assisting developed countries to meet part of their mitigation targets”. This paper explores the use of ambitious crediting baselines for groups of emitters as the basis for a new market mechanism that meets the principles listed above. It focuses on how to define groups of emitters and explores different approaches for building ambition into baselines including using emissions projections and performance benchmarks. Potential elements of a process for setting baselines for subsequent international recognition are also presented. The paper builds on extensive previous analyses carried out on emissions baselines for market mechanisms, taking into account recent developments in the international negotiations.

English

Keywords: baselines, mitigation, climate change, new market mechanism
JEL: Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; F53: International Economics / International Relations, National Security, and International Political Economy / International Agreements and Observance; International Organizations; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming
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