Section 3.4 discussed the role of markets in the post-2020 framework. Table C.1 sets out a spectrum of approaches for international emissions trading, from centralised to decentralised. Any of these would work in concert with other elements of the post-2020 framework, including transparency (section 3.3) and international assessment of countries’ targets (section 3.5).
Table C.1: Possible approaches for international emissions trading in the post-2020 framework
|
Spectrum of options (from most centralised to least centralised) |
Approaches to ensure environmental integrity |
UNFCCC oversight of international marketsâ |
Institutional arrangements |
|
Common rules |
Full set of criteria and processes agreed. All accounting rules agreed under UNFCCC. |
UNFCCC sets rules and monitors compliance to agreed principles, standards and accounting rules. |
UNFCCC as primary regulator (for example, tracking of units and approval processes |
|
Minimum criteria and review |
General principles agreed, and minimum standards and common accounting developed. Flexibility for national circumstances. Non-UNFCCC markets seeking recognition assessed internationally. |
Set of minimum criteria to guide design and implementation. UNFCCC reviews the conformity of non-UNFCCC approaches |
Standard-setting and oversight functions. Capacity-building and information-sharing. |
|
Information-sharing, reporting and assessment |
Possible common reporting guidelines and review of approaches though international assessments (section 3.5). This review may not be against internationally agreed criteria. |
Individual countries design and implement own approaches. UNFCCC facilitates information-sharing and some support services such as central registries. |
Platform for information-sharing, reporting and assessment. Facilitating capacity-building |