The CI-ACA Workstream

Background

Carbon pricing as an approach for implementing mitigation action

A growing number of jurisdictions are considering carbon pricing as an approach for implementing their mitigation action under the Paris Agreement, but also more generally for ensuring low carbon development.

Some 62% of developing country Parties indicated in their Nationally Determined Contribution interest for the use of a carbon market or pricing instrument.

Around 24% of the developing country Parties indicated a clear intention to use carbon pricing approaches for implementing their mitigation action.

In addition to that, a growing number of Parties which have not mentioned carbon pricing in their NDCs are also considering how setting a price signal on carbon emissions can help them achieve their mitigation action.

The need for support

Most of the developing countries interested in considering or implementing a carbon pricing approach will require support. This need to provide support is explicitly recognized in the Article 11.3 of the Paris Agreement:

 3. All Parties should cooperate to enhance the capacity of developing country Parties to implement this Agreement. Developed country Parties should enhance support for capacity-building actions in developing country Parties.​

Establishment of the CI-ACA initative

Based on the need to support developing countries in relation to carbon pricing, donors announced during COP22 the launch of the CI-ACA initiative as a voluntary initiative to provide the support needed.

Purpose

This initiative provides multiple levels of assistance to countries to:

• identify the options available and how these fit with their own circumstances and objectives;

• elaborate concrete proposals to establish instruments;

• adopt and implement the instruments at the national level.

Objective

“To Assist Parties in the development of carbon pricing approaches for implementing their Nationally Determined Contribution (NDC) under the Paris Agreement and foster cooperation”.

Donors

This CI-ACA initiative is enabled by voluntary contributions from a number of governments and contributions from other partners. Current donors include:

  • The Government of Germany (through the Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety)
  • The Government of Québec

Contributors to the first phase included:

  • The Government of Norway
  • The Government of Sweden (through the Swedish Energy Agency)
  • The Government of Switzerland
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