Latin American Carbon Forum San Jose, Costa Rica, 27 - 29 September 2011

1. Ongoing discussions on the formulation of National Appropriate Mitigation Actions (NAMAs) and their possible inclusion as market mechanisms in a post-2012 regime Latin American Carbon Forum San Jose, Costa Rica, 27 - 29 September 2011 William Kojo-Agyemang Bonsu, Manager, Non-Annex I Support

2. Outline • Background • Definition of NAMA • Types of NAMAs • Evolution of NAMA concept • Credited NAMAs • Conclusions

3. Definition of NAMAs • NAMAs are any nationally appropriate mitigation actions of developing country Parties, undertaken in the context of sustainable development and to reduce their emissions from business-as-usual (BAU) levels; • NAMAs that developing country Parties submitted to the UNFCCC secretariat are contained in document FCCC/AWGLCA/2011/INF.1http://unfccc.int/resource/docs/2011/awglca14/eng/inf01.pdf • The submissions show that NAMAs can be policies, programmes and projects: • Energy efficiency and renewable energy measures/certificates; • Cap and trade schemes; • Intensity targets; • Financial instruments; • Technology standards • R&D • Some Parties emphasised the use of existing and new market mechanisms as important for implementation of their mitigation actions.

4. Types of NAMAs • Autonomous/Unilateral/domestically funded NAMAs • Actions implemented with national resources and without external support • Supported NAMAs • Actions enabled and implemented with finance, technology and capacity building support provided by developed country Parties • [Credited NAMAs] – still under discussion • Actions implemented with intension of generating credits to participate in carbon market(s). • Co-benefits • Energy security • Health benefits • Sustainable development

5. Evolution of NAMA concept • By its Decision 1/CP.13 COP launched a process to discussNAMAs; • By its Decision 2/CP.15, the COP took note of the Copenhagen Accord which states that the Non-Annex I Parties will implement mitigation actions, including those to be submitted to the secretariat contained in the aforementioned INF doc; • The Cancun agreements brought together the building blocks and important elements required for undertaking NAMAs mainly: • Facilitation of support for NAMAs seeking support through the Registry • Enhanced reporting • MRV of action and support • International consultation and analysis (ICA)

6. Credited NAMAs • Discussions on inclusion of NAMAs in the future market mechanisms are on-going • The international architecture for the post 2012 period uncertain at the moment • In the past discussions have included: • Credit generating NAMAs are actions undertaken over and above those that are domestically funded and those internationally supported, based on emission reduction targets and may be eligible for emission trading schemes • NAMA crediting procedures? • Length of the crediting interval, • cumulative crediting, and • Effects of supported NAMAs on crediting baselines

7. NAMAs and market mechanisms • Credit-generating NAMAs could generate CERs/offsets for developed countries just as CDM does. • Sector-wide mitigation programs would be one type of credit-generating NAMA. Under these programs, developing countries may need to set baselines or reference levels in absolute emissions or emission intensity terms in one or more sectors; • Market-based mechanisms integrated into the NAMA framework will encourage further mitigation actions in developing countries by offering access to the carbon market and potentially larger financial flows; promote cost effective global mitigation; and allow flexibility to parties in meeting their commitments.

8. NAMAs and market mechanisms • The COP at its sixteenth session decided to consider the establishment, at its seventeenth session, of one or more market-based mechanisms to enhance the cost-effectiveness of, and to promote, mitigation actions, taking into account the following: • Ensuring voluntary participation of Parties, supported by the promotion of fair and equitable access for all Parties; • Complementing other means of support for nationally appropriate mitigation actions by developing country Parties; • Stimulating mitigation across broad segments of the economy; • Safeguarding environmental integrity; • Ensuring a net decrease and/or avoidance of global greenhouse gas emissions; • Assisting developed country Parties to meet part of their mitigation targets, while ensuring that the use of such mechanism or mechanisms is supplemental to domestic mitigation efforts; • Ensuring good governance and robust market functioning and regulation;

9. Conclusion • COP 17 may provide further guidance, substantive or process, on what will constitute the modalities and procedures for the NAMA and other market mechanisms. • It is very speculative at this stage but the following elements may be discussed: • Definition of basic forms: trading and crediting • Rules for definition of sectors and coverage of gases • Methods and criteria for calculating baselines • Methods and criteria determining crediting thresholds and sector targets • Length of crediting/trading period • Provisions for measurement, reporting and verification of emissions • Provisions for issuance of units • Accreditation standard for validators and verifiers

10. Thank you William Kojo Agyemang-Bonsu WAgyemang-Bonsu@unfccc.int