scholarly journals Designing a Blockchain Model for the Paris Agreement’s Carbon Market Mechanism

2020 ◽  
Vol 12 (3) ◽  
pp. 1068 ◽  
Author(s):  
Laura Franke ◽  
Marco Schletz ◽  
Søren Salomo
Keyword(s):  
Selection Criteria ◽  
Carbon Market ◽  
Paris Agreement ◽  
Market Mechanism ◽  
Carbon Markets ◽  
Governance System ◽  
Market Transparency ◽  
Blockchain Technology ◽  
Technical Requirements ◽  
Climate Action

This paper examines the benefits and constraints of applying blockchain technology for the Paris Agreement carbon market mechanism and develops a list of technical requirements and soft factors as selection criteria to test the feasibility of two different blockchain platforms. The carbon market mechanism, as outlined in Article 6.2 of the Paris Agreement, can accelerate climate action by enabling cooperation between national Parties. However, in the past, carbon markets were limited by several constraints. Our research investigates these constraints and translates them into selection criteria to design a blockchain platform to overcome these past limitations. The developed selection criteria and assumptions developed in this paper provide an orientation for blockchain assessments. Using the selection criteria, we examine the feasibility of two distinct blockchains, Ethereum and Hyperledger Fabric, for the specific use case of Article 6.2. These two blockchain systems represent contrary forms of design and governance; Ethereum constitutes a public and permissionless blockchain governance system, while Hyperledger Fabric represents a private and permissioned governance system. Our results show that both blockchain systems can address present carbon market constraints by enhancing market transparency, increasing process automation, and preventing double counting. The final selection and blockchain system implementation will first be possible, when the Article 6 negotiations are concluded, and governance preferences of national Parties are established. Our paper informs about the viability of different blockchain systems, offers insights into governance options, and provides a valuable framework for a concrete blockchain selection in the future.

scholarly journals Blockchain Application for the Paris Agreement Carbon Market Mechanism—A Decision Framework and Architecture

2020 ◽  
Vol 12 (12) ◽  
pp. 5069
Author(s):  
Marco Schletz ◽  
Laura A. Franke ◽  
Søren Salomo
Keyword(s):  
Information Asymmetry ◽  
Heterogeneous Systems ◽  
Carbon Market ◽  
Paris Agreement ◽  
Market Mechanism ◽  
Innovative Technology ◽  
Decision Framework ◽  
Bottom Up ◽  
Blockchain Technology ◽  
Trade Offs

This paper evaluates the suitability of blockchain technology for the Article 6.2 carbon market mechanism of the Paris Agreement. The bottom-up approach of the Paris Agreement causes challenges to the robust accounting of mitigation outcomes and information asymmetry, both of which result from a high number of heterogeneous emission accounting systems. Blockchain is an innovative technology that can act as an aggregation platform for these fragmented systems while enhancing transparency and automating accounting processes. However, this new technology is not a panacea for all problems, and the trade-offs of applying blockchain technology need to be assessed case by case. We create and apply an eight-step decision framework for testing the applicability of the technology for the Paris Agreement Article 6.2 carbon market mechanism. The analysis shows that, under current mechanism specifications, a blockchain application can enhance transparency and increase automation, thereby eliminating information asymmetry. We outline a system architecture that allows the linking of the heterogeneous systems, the integration of an Article 6.2 exchange mechanism, and the progress tracking of climate targets. This blockchain architecture offers national Parties the opportunity to co-create a decentralised system in line with the bottom-up ethos of the Paris Agreement.

cop 25: Losing Sight of (Raising) Ambition

2020 ◽  
Vol 17 (2) ◽  
pp. 136-160
Author(s):  
Charlotte Streck ◽  
Moritz von Unger ◽  
Sandra Greiner
Keyword(s):  
Climate Change ◽  
Developing Countries ◽  
United Nations ◽  
Paris Agreement ◽  
Carbon Markets ◽  
Market Mechanisms ◽  
Political Bargaining ◽  
Climate Action ◽  
Zero Carbon ◽  
Carbon Economy

The 25th session of the Conference of the Parties (cop-25) of the United Nations Framework Convention on Climate Change (unfccc) became the longest cop on record – but yielded few results. It appears that four years after the adoption of the Paris Agreement, enthusiasm has waned and political bargaining and bean-counting have taken over. Countries, for even the slightest chance to keep temperatures ‘well below’ 2 degrees Celsius, must do much more than they have previously committed to and accelerate the shift towards a zero-carbon economy. However, the conference largely failed to heed the rallying cry of the Chilean presidency. The flagship decisions (grouped under the banner “Chile-Madrid Time for Action”) neither produced new commitments – enhancing ambition or finance for developing countries – nor new rules that would nudge countries closer to the climate action targets needed. The leftover pieces from last year’s negotiations of the “Paris Rulebook” were also not resolved, in particular the unfinished decisions on Article 6 on market- and non-market mechanisms. The procrastination shows that the new architecture of the Paris Agreement, while addressing several of the shortcomings of the Kyoto Protocol, suffers from its own weaknesses. The meager results of Madrid give reason to pause and reflect on the conditions that may hold countries back from fully embracing the Paris Agreement, but also to consider the future and nature of carbon markets and what is making the issue so difficult to resolve.

scholarly journals Linked Carbon Markets: Silver Bullet, or Castle in the Air?

Climate Law ◽  
2016 ◽  
Vol 6 (1-2) ◽  
pp. 142-151 ◽  
Author(s):  
Torbjørg Jevnaker ◽  
Jørgen Wettestad
Keyword(s):  
Carbon Market ◽  
Paris Agreement ◽  
Carbon Markets ◽  
Political Will ◽  
Political Ties ◽  
Political Feasibility ◽  
Climate Policies ◽  
History Of ◽  
Distribution Of Power ◽  
Silver Bullet

Does the Paris Agreement provide a boost to carbon markets? Although carbon markets are spreading globally, so far relatively few links have been established between them. The history of linking indicates that successful efforts are characterized by converging ets design, and, related to this, political will. Moreover, existing links have been facilitated by prior economic and political ties. Such linking processes face significant challenges related to distribution of power and political feasibility. The Paris Agreement does not make the more intrinsic challenges of political linking go away. Moreover, a significant amount of elaboration and clarification of the Paris Agreement remains subject to further negotiations. Nevertheless, Paris confirmed an increasing support for carbon markets: the periodic reviews of state climate policies, shared fulfilment, and common guidance for accounting, together provide a new momentum for the development of carbon markets and the process of linking them. What this boost means for the prospects of a globally interlinked carbon market remains to be seen.

Making international law, making carbon markets

2021 ◽  
pp. 1037969X2110297
Author(s):  
Nicola Silbert
Keyword(s):  
Climate Change ◽  
International Law ◽  
Carbon Market ◽  
Paris Agreement ◽  
Carbon Markets ◽  
History Of ◽  
Colonial Encounter ◽  
Law Making

This article presents an exploratory discussion of Antony Anghie’s history of the making of international law. It provides an accessible introduction to the text and some of the debates surrounding its key arguments. The article goes on to explore Anghie’s arguments in the context of Article 6 of the Paris Agreement. Anghie’s arguments are used to foreground the colonial encounter in carbon market systems, with implications for discussions of Article 6 at the upcoming 26th UN Climate Change Conference of the Parties (COP26) in Glasgow late in 2021.

scholarly journals Proposal of Implementation Framework of Cooperative Approaches and Sustainable Development Mechanism

2022 ◽  
Vol 14 (2) ◽  
pp. 655
Author(s):  
Huangwei Deng ◽  
Ying Su ◽  
Zhenliang Liao ◽  
Jiang Wu
Keyword(s):  
Climate Change ◽  
Sustainable Development ◽  
Carbon Market ◽  
Paris Agreement ◽  
Market Mechanism ◽  
Carbon Trading ◽  
Implementation Framework ◽  
The Sustainable Development ◽  
Three Stages ◽  
Development Mechanism

To slow down climate warming and achieve sustainable development, the Paris Agreement attempts to establish cooperative approaches (Article 6.2 in the Paris Agreement) and a sustainable development mechanism (Article 6.4 in the Paris Agreement) for carbon trading. However, deficiencies in implementation exist due to a lack of systematic execution regulations and an integrated management system. To strengthen the effectiveness of the two carbon trading mechanisms for reducing carbon emission, this paper aims to propose an implementation framework of cooperative approaches and a sustainable development mechanism. Based on the international regime theory in global climate change and the nine elements of the market mechanism, the paper makes use of comparative analysis to discuss the type of mechanism, coverage of the system, operational framework, governance framework, and implementation framework of cooperative approaches and a sustainable development mechanism. The main results and conclusions are as follows: (1) Cooperative approaches are considered as project-based and quota-/credit-based carbon market mechanisms. Under cooperative approaches, trading units should be authorized at the international-regional and sub-regional levels. CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3 are the seven types of greenhouse gases that could be traded through cooperative approaches, and they shall be accounted by the unit of CO2-eq. (2) The sustainable development mechanism is considered as an industry-based and credit-based carbon market framework. Under the sustainable development mechanism, trading units should be authorized at the international level. CO2, CH4, N2O, and PFCs can work in the sustainable development mechanism as subject matters. The unit of gases shall be CO2-eq as well. (3) The implementation framework of cooperative approaches ought to follow three stages: project preparation, project submission, and auditing, as well as internationally transferred mitigation outcomes transfer. The implementation framework of the sustainable development mechanism ought to contain three stages: project development and review, project implementation and monitoring, and project acceptance and unit transfer. The authors hope it can work as a guideline for the early implementation stage of the cooperative approaches and sustainable development mechanism to stimulate carbon reduction and further slow climate change.

(Utilization of International Carbon Market under the Paris Agreement)

2016 ◽  
Author(s):  
Jin-Young Moon ◽  
Jione Jung ◽  
Jihei Song ◽  
Sung Hee Lee
Keyword(s):  
Carbon Market ◽  
Paris Agreement

IDB Group and Climate Action

2021 ◽  
Author(s):  
Keyword(s):  
Climate Change ◽  
Latin American ◽  
Paris Agreement ◽  
Climate Finance ◽  
Development Bank ◽  
Multilateral Development Banks ◽  
Climate Action ◽  
The Caribbean ◽  
Development Banks ◽  
Bank Group

As one of the leading development partners for Latin American and the Caribbean (LAC), the Inter-American Development Bank Group (IDB Group) is fully committed to lead by example on climate change action. Since the signing of the Paris Agreement, the IDB Group has provided over $20 billion in Climate Finance, amounting to about 60% of all Climate Finance to the region from Multilateral Development Banks (MDBs).

scholarly journals Selection of the most adequate trip-modelling tool for integrated transport planning system

2016 ◽  
Vol 37 (1) ◽  
pp. 55-66 ◽  
Author(s):  
Piotr Sawicki ◽  
Marcin Kiciński ◽  
Szymon Fierek
Keyword(s):  
Selection Criteria ◽  
Selection Process ◽  
Regional Scale ◽  
Selection Procedure ◽  
Planning System ◽  
Second Phase ◽  
Transport Planning ◽  
Phase Selection ◽  
Technical Requirements ◽  
Selection Of

This paper deals with the problem of selection the most suitable trip-modelling tool (TMT), which is a part of the more complex integrated transport planning system (ITPS) at the regional scale. Since an application of TMT is not autonomous and several different users exist the selection problem is not a trivial. In this paper, an original five-phase selection procedure is presented. The first phase consists in specifica¬tion of both, detailed expectations of all identified users and technical requirements of ITPS. Second phase deals with research on available TMT while a third one is concentrated on defining a comprehensive set of criteria. In this phase critical criteria as well as selection criteria are defined. First one is utilised to eliminate unacceptable TMTs in phase four and second one to evaluate and select most adequate TMT in phase five. In the paper an exemplary application of this procedure is presented. The authors have defined 2 critical criteria and a set of 19 selection criteria. The last one is divided into 3 main subsets, i.e. functional, technical and financial contexts of selection process. All the selection criteria are characterised by 43 sub-criteria and some of them are more detailed extended. Using this procedure 3 out of 6 alternative TMTs including Emme, Aimsun and Visum have been initially accepted and next evaluated. Finally, Visum has been selected and recommended for application into ITPS.

scholarly journals Is Green Recovery Enough? Analysing the Impacts of Post-COVID-19 Economic Packages

Energies ◽  
2021 ◽  
Vol 14 (17) ◽  
pp. 5567
Author(s):  
Pedro R. R. Rochedo ◽  
Panagiotis Fragkos ◽  
Rafael Garaffa ◽  
Lilia Caiado Couto ◽  
Luiz Bernardo Baptista ◽  
...  
Keyword(s):  
Energy Use ◽  
Ghg Emissions ◽  
Energy Transition ◽  
Energy System ◽  
Paris Agreement ◽  
Investment Planning ◽  
Climate Policies ◽  
Climate Action ◽  
Support Employment ◽  
Societal Changes

Emissions pathways after COVID-19 will be shaped by how governments’ economic responses translate into infrastructure expansion, energy use, investment planning and societal changes. As a response to the COVID-19 crisis, most governments worldwide launched recovery packages aiming to boost their economies, support employment and enhance their competitiveness. Climate action is pledged to be embedded in most of these packages, but with sharp differences across countries. This paper provides novel evidence on the energy system and greenhouse gas (GHG) emissions implications of post-COVID-19 recovery packages by assessing the gap between pledged recovery packages and the actual investment needs of the energy transition to reach the Paris Agreement goals. Using two well-established Integrated Assessment Models (IAMs) and analysing various scenarios combining recovery packages and climate policies, we conclude that currently planned recovery from COVID-19 is not enough to enhance societal responses to climate urgency and that it should be significantly upscaled and prolonged to ensure compatibility with the Paris Agreement goals.

scholarly journals A new scenario logic for the Paris Agreement long-term temperature goal

2020 ◽  
Author(s):  
Joeri Rogelj ◽  
Daniel Huppmann ◽  
Volker Krey ◽  
Keywan Riahi ◽  
Leon Clarke ◽  
...  
Keyword(s):  
Global Warming ◽  
Integrated Assessment ◽  
Transition Period ◽  
Paris Agreement ◽  
Climate Change Scenarios ◽  
Industrial System ◽  
Carbon Neutrality ◽  
Climate Action ◽  
Near Term

<p>To understand how global warming can be kept well-below 2°C and even 1.5°C, climate policy uses scenarios that describe how society could transform in order to reduce its greenhouse gas emissions. Such scenario are typically created with integrated assessment models that include a representation of the economy, and the energy, land-use, and industrial system. However, current climate change scenarios have a key weakness in that they typically focus on reaching specific climate goals in 2100 only. <br><br>This choice results in risky pathways that delay action and seemingly inevitably rely on large quantities of carbon-dioxide removal after mid-century. Here we propose a framework that more closely reflects the intentions of the UN Paris Agreement. It focusses on reaching a peak in global warming with either stabilisation or reversal thereafter. This approach provides a critical extension of the widely used Shared Socioecononomic Pathways (SSP) framework and reveals a more diverse picture: an inevitable transition period of aggressive near-term climate action to reach carbon neutrality can be followed by a variety of long-term states. It allows policymakers to explicitly consider near-term climate strategies in the context of intergenerational equity and long-term sustainability.</p>

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