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Market and non-market mechanisms
 

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Combatting climate change will require mobilization of substantial resources. Success will depend on the establishment of mechanisms and approaches that incentivize the mobilization of resources for cost-effective and ambitious climate action at all levels. Cooperation between Parties and between private and public-sector stakeholders is considered crucial.



 

 

pdf-icon COP.18 (Doha, 2012) requested the Subsidiary Body for Scientific and Technological Advice (SBSTA) to conduct three work programmes to elaborate:

 

 Framework for various approaches

 Non-market-based approaches

New market-based mechanism 

This pdf-icon Decision captured the outcome of several years of negotiations under the AWG-LCA. Pursuant to the pdf-icon Bali Action Plan, pdf-icon COP.16 (Cancun, 2010) decided to consider the establishment of one or more market-based and non-market based mechanisms and agreed on criteria to guide their implementation. pdf-icon COP.17 (Durban, 2011) defined a new market-based mechanism and decided to consider a framework for various approaches. 



Recent development 
 

At COP 19 (Warsaw, 2013), a side-event was held to inform Parties and organizations unable to attend the Bonn workshops about the outcomes of those workshops. Despite a rich exchange of views and intensive drafting, SBSTA 39 was unable to reach an agreement to forward draft decisions for adoption by COP 19. In response to requests by Parties, the COP President, under his own authority, conducted consultations on the market and non-market mechanisms and informed the COP of the absence of consensus on continuing work in Warsaw.

As agreed by SBSTA 39, the framework for various approaches, non-market-based approaches and the new market-based mechanism will be included in the provisional agenda of SBSTA 40, in accordance with rules 10(c) and 16 of the draft rules of procedures being applied.

The SBSTA 38 (Bonn, 2013) agreed on further steps in 2013 to advance the delivery of the mandate from COP.18 for the work programmes on the framework for various approaches, non-market-based approaches and the new market-based mechanism, such as submissions by 2 September 2013 on a number of questions on the elements of each work programme, technical syntheses for the framework for various approaches and the new market-based mechanism and three workshops which were held jointly prior to COP 19.



COP Mandates

 
    Decisions
COP 18 Agreed outcome pursuant to the Bali Action Plan pdf-icon 1/CP.18
COP 17 Outcome of the work of AWGLCA pdf-icon 2/CP.17
COP 16 Cancun Agreement pdf-icon 1/CP.16
COP 13 Bali Action Plan pdf-icon 1/CP.13


 Workshops

 

 Dates

 Descriptions

 Workshop Reports
11 Nov. 2013

Reporting on the outcomes of the joint workshop on the FVA, NMM and NMA
Venue: National Stadium in Warsaw, Poland
Time: 13:15 - 14:45

pdf-icon FVA outcome presentation (131 kB)

pdf-icon NMA outcome presentation (378 kB)

pdf-icon NMM outcome presentation (301 kB)

7-9 Oct.  2013

Joint workshops on the framework for various approaches, non-market-based approaches and the new market-based mechanism, Bonn, Germany
Venue:   World Conference Centre Bonn (WCCB) 

pdf-icon Agenda (21 kB)

Notifications to:
pdf-icon Parties
pdf-icon NGOs
pdf-icon IGOs and
pdf-icon UN Organizations

pdf-icon FCCC/SBSTA/2013/INF.11

pdf-icon FCCC/SBSTA/2013/INF.12

pdf-icon FCCC/SBSTA/2013/INF.13

31 August 2012 Workshop on the new market-based mechanism, held in Bangkok, Thailand FCCC/AWGLCA/2012/INF.10  
31 August 2012 Workshop on a framework for various approaches, held in Bangkok, Thailand FCCC/AWGLCA/2012/INF.9 
19 May 2012 Workshop on a framework for various approaches, held in Bonn, Germany  FCCC/AWGLCA/2012/INF.4
 19 May 2012 Workshop on the new market-based mechanism, held in Bonn, Germany  FCCC/AWGLCA/2012/INF.5
Relevant Documents

pdf-icon FCCC/SBSTA/2013/5
Report of the Subsidiary Body for Scientific and Technological Advice on its thirty-ninth session

FCCC/SBSTA/2013/3
Report of the Subsidiary Body for Scientific and Technological Advice on its thirty-eighth session

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Submissions from Parties and NGOs

Submissions on Framework for various approaches

Submissions on Non-market-based approaches

Submissions on New market-based mechanism`

 

 

Technical Paper

pdf-icon FCCC/TP/2013/5
Technical synthesis on the framework for various approaches.

pdf-icon FCCC/TP/2013/6
Technical synthesis on the new market-based-mechanism.