The New Market Mechanism

1. The New Market Mechanism Emissions Trading – Developments in China & Europe Workshop 25th April 2012 Dr Luke Redmond Luke.Redmond@ucd.ie

2. “The Durban platform”

3. Durban & The NEW market mechanism

4. The NEW market mechanism

5. NEW market mechanism Operational Overview

6. NEW market mechanism trading form

7. A developing country prepares an Initial Report: - Chooses coverage (i.e. sectors and gases) based on common definitions where possible - Estimates baseline emissions pathway for these sectors and gases based on methods and criteria agreed in M&P - Chooses a trading and/or crediting route - Determines crediting threshold or target for broad segment of economy based on criteria or methodology agreed in M&P - Chooses the domestic actions it will undertake to reach this threshold or target - Assesses the risk of carbon leakage to sectors not covered by the threshold/target and presents any measures necessary to address it - Demonstrates it meets participation requirements Assessment by IRT if requirements in M&P and relevant guidance are met; any question of implementation MRV of emissions in broad segment of economy covered Initial report is reviewed by Independent Review Team Implementation Committee Host country proceeds with implementation of NMM Resolve any outstanding question of implementation Host country produces an annual report Assessment, incl. any question of implementation Annual report is reviewed by Independent Review Team Implementation Committee Resolve any outstanding question of implementation Issuance of credits or units NMM Operational Cycle

8. Initial Report Development

9. Initial Report Development (continued)

10. Initial Report Assessment by IRT if requirements in M&P and relevant guidance are met; any question of implementation MRV of emissions in broad segment of economy covered Initial report is reviewed by Independent Review Team Implementation Committee Host country proceeds with implementation of NMM Resolve any outstanding question of implementation Host country produces an annual report Assessment, incl. any question of implementation Annual report is reviewed by Independent Review Team Implementation Committee Resolve any outstanding question of implementation Issuance of credits or units NMM Operational Cycle

11. NMM Governance

12. NMM Governance (continued)

13. NMM Issues

14. Next Steps

15. Thank you for your attention Contact: Luke.Redmond@ucd.ie