COP20 in Lima to establish the groundwork for a future climate treaty will take place in limbo over tangible commitments on climate action only expected throughout 2015. Yet, discussions on a number of crucial issues will happen in light of this uncertainty. A hot potato will be the level of climate ambition needed for countries that want to use carbon markets.
Against the insufficient climate action pledges that have been made so far, countries are expected to discuss criteria needed to participate in the global carbon market. This is likely to include a requirement that pledges need to be in line with keeping global temperatures below 2°C. Delegates are also expected to discuss the fair contribution of domestic action required and the amount of international market units to be used supplementary to this target. In addition, proposals have been made to limit the amount of “international tradable allowances” for countries that aim to link their emissions trading schemes.
Lima will need to lay grounds for a rigorous accounting framework and robust unit quality requirements, a key element of a future climate treaty to avoid double counting, achieve net atmospheric benefits as well as keep us on track to limit global warming below 2°C.
Other issues on the agenda will be alternative financing for stranded Clean Development Mechanism (CDM) projects and proposals to include forests and land use activities in existing and new carbon markets. At the occasion of the international human rights day, the need to protect human rights in all climate actions will be high up on the agenda in Lima.
For a more detailed overview of policy discussions and recommendations, please see our views on:
- The use of carbon markets under a post-2020 climate deal
- The review of the modalities and procedures for the CDM
- Possible additional LULUCF activities and specific alternative approaches to addressing the risk of non-permanence under the CDM
- The review of the Joint Implementation guidelines
(Human Rights and CDM Benefit Tracker)
Our COP20 Events
Carbon Market Watch together with local groups in Latin America will share experiences with the implementation of CDM projects and discuss policy frameworks needed to protect human rights when implementing climate projects at a number of occasion.
How lessons learned from the CDM can inform the design of climate finance mechanisms
2 Dec 11.30-13:00 Official venue – Room Caral
The CDM will have a limited role in a future climate treaty but can provide valuable experience for the design of climate finance. At this event, experts will share experiences with the CDM’s contribution to sustainable development and will discuss safeguards needed for climate finance mechanisms.
Pitfalls of hydropower projects to meet climate and sustainability objectives
8 Dec 18:00-20.00 Mountains and Water Pavilion
CDM hydroelectric projects in Guatemala, Panama and Columbia reflect the existing lacks in international obligations and standards of such dams, particularly in relation to climate mitigation finance. The three case studies will lead to a discussion on the ways forward to address challenges of indigenous communities and hydropower dams.
The Sasan coal power CDM project – lessons learnt for climate finance
8 Dec 10:00-12:00 People’s Summit
One of the most controversial projects registered under the Clean Development Mechanism is the Sasan project in India, a coal power project that causes severe environmental and human rights impacts.At this event, expert views will be given on the shortcomings of the CDM and the negative aspects of coal power projects. At the occasion of the event, the “CDM Benefit Tracker India” will be launched, a tool showing the real impacts of implemented CDM projects in India compared to the promises set out at the design of the projects.
Lima’s chance to protect human rights in climate actions
10 Dec 09:00-11:00 People’s Summit
The event was inspired by the International Human Rights Day and the concern for climate projects which violate rights of directly affected communities and indigenous people.
See invitation here
Read report here
Nationally Appropriate Mitigation Actions (NAMAs) – the new kid on the block
11 Dec 10:00-12:00 People’s Summit
The post-2020 mitigation commitments foresee contributions from both developed and developing countries, which challenges the future role of carbon markets. At this event, experts will discuss the role of climate change mitigation instruments, with a focus on new policy instrument entitled Nationally Appropriate Mitigation Actions (NAMAs).