Simulation on Connecting Climate Market Systems

Simulation on Connecting Climate Market Systems

The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through nationally determined contributions (NDCs). Furthermore, Article 6 of the Paris Agreement recognizes th...

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Bibliographic Details
Main Author: World Bank Group
Format: Report
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
CONVENTION ON CLIMATE CHANGE
CARBON PRICING
CARBON TRADING
NATIONALLY DETERMINE CONTRIBUTION
GREENHOUSE GAS EMISSIONS
SIMULATION
CLIMATE CHANGE MITIGATION
CLIMATE WAREHOUSE
META-REGISTRY
BLOCKCHAIN
PARIS AGREEMENT
Online Access:http://documents.worldbank.org/curated/en/128121575306092470/Summary-Report-Simulation-on-Connecting-Climate-Market-Systems
http://hdl.handle.net/10986/32747
id okr-10986-32747
recordtype oai_dc
spelling okr-10986-327472021-05-25T09:29:44Z Simulation on Connecting Climate Market Systems World Bank Group CONVENTION ON CLIMATE CHANGE CARBON PRICING CARBON TRADING NATIONALLY DETERMINE CONTRIBUTION GREENHOUSE GAS EMISSIONS SIMULATION CLIMATE CHANGE MITIGATION CLIMATE WAREHOUSE META-REGISTRY BLOCKCHAIN PARIS AGREEMENT The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through nationally determined contributions (NDCs). Furthermore, Article 6 of the Paris Agreement recognizes that Parties may engage in bilateral cooperative approaches, including through the use of internationally transferred mitigation outcomes (ITMOs), to achieve their NDCs. Heterogeneous climate markets may have different governance systems and technological approaches. Information about mitigation outcomes (MOs) or emission reductions is currently collected in a variety of repositories, including spreadsheets and registries, with different levels of information. The differences in these processes may constrain market integration and add to the complexity of tracking and recording transactions. Against this backdrop, there is a need to create a new architecture to support transparency and enhance the tradability of climate assets across jurisdictions while ensuring the integrity of trades. The Kyoto Protocol utilized an International Transaction Log (ITL), operated by the United Nations Framework Convention on Climate Change (UNFCCC), to facilitate communication between registries and maintain a transaction log to ensure accurate accounting and verification of transactions proposed by connected registries. However, under the Paris Agreement, which may rely on a decentralized approach to markets under Article 6.2, climate negotiators are still determining whether a centralized infrastructure should continue, the functions it could perform, and to which market mechanisms or transactions it would apply. Consistent with the bottom-up ethos of the Paris Agreement, there is value in demonstrating an approach to link registry systems in a peer-to-peer arrangement. 2019-12-03T16:31:17Z 2019-12-03T16:31:17Z 2019-12-01 Report http://documents.worldbank.org/curated/en/128121575306092470/Summary-Report-Simulation-on-Connecting-Climate-Market-Systems http://hdl.handle.net/10986/32747 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Other Environmental Study
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CONVENTION ON CLIMATE CHANGE
CARBON PRICING
CARBON TRADING
NATIONALLY DETERMINE CONTRIBUTION
GREENHOUSE GAS EMISSIONS
SIMULATION
CLIMATE CHANGE MITIGATION
CLIMATE WAREHOUSE
META-REGISTRY
BLOCKCHAIN
PARIS AGREEMENT
spellingShingle CONVENTION ON CLIMATE CHANGE
CARBON PRICING
CARBON TRADING
NATIONALLY DETERMINE CONTRIBUTION
GREENHOUSE GAS EMISSIONS
SIMULATION
CLIMATE CHANGE MITIGATION
CLIMATE WAREHOUSE
META-REGISTRY
BLOCKCHAIN
PARIS AGREEMENT
World Bank Group
Simulation on Connecting Climate Market Systems
description The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through nationally determined contributions (NDCs). Furthermore, Article 6 of the Paris Agreement recognizes that Parties may engage in bilateral cooperative approaches, including through the use of internationally transferred mitigation outcomes (ITMOs), to achieve their NDCs. Heterogeneous climate markets may have different governance systems and technological approaches. Information about mitigation outcomes (MOs) or emission reductions is currently collected in a variety of repositories, including spreadsheets and registries, with different levels of information. The differences in these processes may constrain market integration and add to the complexity of tracking and recording transactions. Against this backdrop, there is a need to create a new architecture to support transparency and enhance the tradability of climate assets across jurisdictions while ensuring the integrity of trades. The Kyoto Protocol utilized an International Transaction Log (ITL), operated by the United Nations Framework Convention on Climate Change (UNFCCC), to facilitate communication between registries and maintain a transaction log to ensure accurate accounting and verification of transactions proposed by connected registries. However, under the Paris Agreement, which may rely on a decentralized approach to markets under Article 6.2, climate negotiators are still determining whether a centralized infrastructure should continue, the functions it could perform, and to which market mechanisms or transactions it would apply. Consistent with the bottom-up ethos of the Paris Agreement, there is value in demonstrating an approach to link registry systems in a peer-to-peer arrangement.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Simulation on Connecting Climate Market Systems
title_short Simulation on Connecting Climate Market Systems
title_full Simulation on Connecting Climate Market Systems
title_fullStr Simulation on Connecting Climate Market Systems
title_full_unstemmed Simulation on Connecting Climate Market Systems
title_sort simulation on connecting climate market systems
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/128121575306092470/Summary-Report-Simulation-on-Connecting-Climate-Market-Systems
http://hdl.handle.net/10986/32747
_version_ 1764477204501102592

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