{"id":45128,"date":"2021-10-26T17:58:02","date_gmt":"2021-10-26T16:58:02","guid":{"rendered":"https:\/\/www.climatechangenews.com\/?p=45128"},"modified":"2021-10-26T18:00:16","modified_gmt":"2021-10-26T17:00:16","slug":"chess-game-negotiators-seek-elusive-carbon-market-deal-cop26","status":"publish","type":"post","link":"https:\/\/www.climatechangenews.com\/2021\/10\/26\/chess-game-negotiators-seek-elusive-carbon-market-deal-cop26\/","title":{"rendered":"&#8216;Chess game&#8217; as negotiators seek elusive carbon market deal at Cop26"},"content":{"rendered":"<p><strong>As diplomats prepare to travel to Glasgow for the Cop26 climate talks, it remains touch-and-go whether countries will be able to finalise rules for a new global carbon market. <\/strong><\/p>\n<p>Under the Paris Agreement, countries agreed to set up a carbon trading system to help decarbonise the global economy at lower cost. It is known as <a href=\"https:\/\/www.climatechangenews.com\/2019\/12\/02\/article-6-issue-climate-negotiators-cannot-agree\/\" target=\"_blank\" rel=\"noopener noreferrer\">Article 6<\/a> and has proved the hardest part of the Paris rulebook to agree.<\/p>\n<p>The market would allow nations to finance carbon-cutting projects in another countries and count the avoided emissions towards their own climate targets. But without robust accounting rules, it has the potential to undermine the Glasgow summit\u2019s key objective: to keep 1.5C \u2013 the most ambitious goal of the Paris Agreement \u2013 within reach.<\/p>\n<p>If countries want to demonstrate they are serious about \u201ckeeping 1.5C alive\u201d then \u201chaving good, robust rules on carbon markets is paramount,\u201d Yamide Dagnet, director of climate negotiations at the World Resources Institute, told Climate Home News.<\/p>\n<p>Several experts told Climate Home News the chances of a deal in Glasgow were 50-50. \u201cIt\u2019s going to be a real chess game,\u201d said Dagnet.<\/p>\n<p>\u201cWe will get the best deal we can and take a decision on this,\u201d Diann Black-Layne, of Antigua and Barbuda, lead negotiator for the Alliance of Small Island States (Aosis) told Climate Home. \u201cA delay in getting a deal will only benefit the fossil fuel industry.&#8221;<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2019\/12\/02\/article-6-issue-climate-negotiators-cannot-agree\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>What is Article 6?<\/strong> The issue climate negotiators cannot agree<\/a><\/p><\/blockquote>\n<p>The UK government has made resolving the issue a critical objective in Glasgow, recognising that several countries intend to use the carbon market to help them meet their 2030 climate targets.<\/p>\n<p>China, which has recently set up its own carbon trading system, and Russia, which hopes to use its forest sink to sell carbon credits, have shown growing interest in getting a deal done.<\/p>\n<p>But the task ahead is significant. The issue <a href=\"https:\/\/www.climatechangenews.com\/2019\/12\/16\/cop25-achieved-next\/\" target=\"_blank\" rel=\"noopener noreferrer\">dominated<\/a> the last climate talks in Madrid in 2019, yet after two days of overtime it ended with no fewer than nine draft texts.<\/p>\n<p>Cop26 boss Alok Sharma host tasked Singapore\u2019 minister Grace Fu and Norway\u2019s Sveinung Rotevatn to carry out informal consultations with countries and tease out convergence.<\/p>\n<p>During these meeting, countries largely \u201crepeated previous positions\u201d meaning \u201cmore work is clearly required\u201d for a compromise to be found, according to a\u00a0<a href=\"https:\/\/climatehomenews.us1.list-manage.com\/track\/click?u=6316d25f7b68919349e54a251&amp;id=50f7523790&amp;e=b91320d11f\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"2\">summary of the final pre-Cop26 ministerial meeting<\/a>.<\/p>\n<p>Heads of delegations were called in for a final meeting on the issue on Friday before the start of Cop26 on 31 October.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2021\/10\/26\/australia-relying-offsets-future-technology-meet-2050-net-zero-target\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Australia<\/strong> is relying on offsets and future technology to meet 2050 net zero target<\/a><\/p><\/blockquote>\n<p>The three\u00a0most contentious issues are likely to require a political resolution. These include whether to accept some double counting of emissions reductions, the transition of old Kyoto-era credits into the Paris regime and whether a share of revenue from bilateral carbon trading agreements should go to the Adaptation Fund.<\/p>\n<p>Brazil and Australia have been among the most vociferous advocates of looser rules, <a href=\"https:\/\/www.climatechangenews.com\/2019\/12\/14\/australia-brazil-carbon-credits-will-put-1-5c-reach-ten-countries-say\/\" target=\"_blank\" rel=\"noopener noreferrer\">clashing<\/a> with the EU and vulnerable country groupings over environmental integrity.<\/p>\n<p>There are some signs of Brazil\u00a0<a href=\"https:\/\/climatehomenews.us1.list-manage.com\/track\/click?u=6316d25f7b68919349e54a251&amp;id=3f8adc3dcc&amp;e=b91320d11f\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"4\">softening\u00a0its stance<\/a> on allowing old Kyoto credits to enter the new market. Brazilian business group CEBDS has <a href=\"https:\/\/cebds.org\/publicacoes\/reposicionando-o-brasil-na-regulamentacao-do-artigo-6-do-acordo-de-paris\/#.YXALRprMI2w\" target=\"_blank\" rel=\"noopener noreferrer\">called on the government to compromise<\/a> by allowing corresponding adjustments to be made so carbon reductions are not counted twice.<\/p>\n<p>While ministers have recognised possible trade-offs between issues and with the wider Cop26 agenda, how this could be translated into an overall deal still isn\u2019t clear.<\/p>\n<p>One European official told Climate Home some countries were ready to water down some environmental integrity standards to get Article 6 over the line in Glasgow.<\/p>\n<p>And analysts agree that unless countries such as Brazil show a radical change in their positions, any compromise will require loopholes.<\/p>\n<p>\u201cThe question is how many loopholes will a deal have and how long will these loopholes last for,\u201d said Lambert Schneider, a carbon market expert at the Germany-based \u00d6ko-Institut.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2021\/10\/25\/saudi-pledges-net-zero-2060-no-oil-exit-plan\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Saudi Arabia<\/strong> pledges net zero by 2060, but no oil exit plan<\/a><\/p><\/blockquote>\n<p>The chair of the scientific and technological body of UN Climate Change, Tosi Mpanu Mpanu, compiled in <a href=\"https:\/\/climatehomenews.us1.list-manage.com\/track\/click?u=6316d25f7b68919349e54a251&amp;id=fcd6ac1573&amp;e=b91320d11f\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"5\">an informal paper<\/a>\u00a0options that have broad support and which could form the basis for a deal.<\/p>\n<p>Some of the options include introducing time-bound opt-out period that would allow double counting emissions reductions and limiting the number of Kyoto-era credits in the new system by capping them in volume or allowing them for a restricted time period.<\/p>\n<p>Ministers\u00a0<a href=\"https:\/\/climatehomenews.us1.list-manage.com\/track\/click?u=6316d25f7b68919349e54a251&amp;id=643a892ae6&amp;e=b91320d11f\" target=\"_blank\" rel=\"noopener noreferrer\" data-auth=\"NotApplicable\" data-linkindex=\"6\">warned<\/a>\u00a0that some of the options for compromise are \u201cnot consistent with the aim of raising ambition\u201d and the 1.5C temperature goal.<\/p>\n<p>Small island states, Latin American countries and the EU have strongly opposed any double counting of emission reductions. Kelley Kizzier, of the Environmental Defense Fund, said preventing double counting was \u201ca fundamental requirement for any effective carbon market&#8221;. With that ruled out, &#8220;a deal is certainly within reach,&#8221; she said.<\/p>\n<p>But \u201cnegotiators may accept some short-term undermining of integrity as long as the system can be fixed in the long term and in the right way,\u201d Schneider told Climate Home.<\/p>\n<p>Demand for Kyoto-era credits is \u201calready sapped,\u201d said Brad Schallert, WWF&#8217;s director of carbon market governance, and any country that decides to count these cheap credits with little climate benefits towards its climate plan would suffer \u201cserious reputational risk\u201d.<\/p>\n<blockquote><p><a href=\"https:\/\/www.climatechangenews.com\/2021\/10\/25\/donor-countries-set-reach-100bn-climate-finance-target-2023-three-years-late\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Donor<\/strong> countries set to reach $100bn climate finance target in 2023 \u2013 three years late<\/a><\/p><\/blockquote>\n<p>The middle ground on allocating a share of the market&#8217;s revenue towards adaptation finance is less clear.<\/p>\n<p>The mechanism was designed to ensure predictable adaptation finance for vulnerable nations. If rich countries can\u2019t agree to it in the context of Article 6, \u201cthey need to come with an alternative\u201d for meeting that need, Dagnet said.<\/p>\n<p>Overall, the carbon market is supposed to help countries enhance their ambition, not lower it.<\/p>\n<p>Gilles Dufrasne, policy officer at Carbon Market Watch, warned that the high-level political attention on Article 6 risked pushing countries to seek a deal at any cost.<\/p>\n<p>\u201cThis Cop should not be about Article 6, it should be about finance, ambition and keeping 1.5C alive and not on what extent to compromise on environmental integrity just to have a carbon market,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"Agreeing on rules for a global carbon market has become a high-level political focus of the Glasgow summit but experts warn getting it wrong will undermine 1.5C ambition","protected":false},"author":39,"featured_media":45130,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[607,3863,3858,4264,1483],"tags":[],"coauthors":[4267],"class_list":["post-45128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-carbon-markets","category-finance","category-policy","category-cop26","category-un-climate-talks","type-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>&#039;Chess game&#039; 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