Capacity Building: Emissions Trading Systems Study Tours and Expert Training in Selected Countries and in Germany Carbon Expo, Cologne

25 May 2016

Angelika Smuda, Policy Officer, BMUB

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BMUB: Our Vision

BMUB: Capacity Building – Emissions Trading Systems

Short to medium term:

• Emergence of emissions trading systems (ETS) in many jurisdictions

• In developed countries as well as in emerging economies

• Linking agreements between closely related systems possibly in some cases via preliminary restricted approaches (e.g. unilateral or based on quotas)

Medium to long term:

• Increased direct linking between various ETS complemented by the exchange of ITMOs in the context of other market instruments finally leading to a global carbon market

• Linking agreements can be concluded on a bilateral or multilateral basis based on the provisions for cooperative approaches in Article 6 of the Paris Agreement

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International Capacity Building ETS to Support Bilateral Cooperation

BMUB: Capacity Building – Emissions Trading Systems

Supporting emerging emissions trading systems

On a bilateral basis:

• Specific cooperation projects with some countries in the framework of the International Climate Inititative

• General Capacity Building Activities on ETS Activities either as kick-off events for further bilateral cooperation or elements within specific cooperation projects

On a multilateral basis:

• Active Participation in the International Carbon Action Partnership (ICAP) and supporting the ICAP secretariat in Berlin

• Active Participation in the Partnership for Market Readiness of the World Bank as Donor Country

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Recent ETS developments worldwide

BMUB: Capacity Building – Emissions Trading Systems

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Capacity Building: ETS – The programme (I)

BMUB: Capacity Building – Emissions Trading Systems

• International dissemination of ETS basic

knowledge and best practice and supporting

selected countries implement national ETS or

installation based MRV

• Practical experiences from the EU ETS and

Germany as a starting point for developing and

implementing own ETS

• Expert Consultations on specific issues to

support countries during implementation of ETS

• Phase I (2011-2013); Phase II (2013-2017)

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Capacity Building: ETS – The programme (II)

BMUB: Capacity Building – Emissions Trading Systems

Consortium:

Programme by:

In cooperation with:

Division KI I 3 Legal Issues Climate Policy and Energy; Emissions Trading

Supporting Climate Change

Mitigation and Adaptation in

Russia and ENP East

countries

Partner Programmes:

Capacity Building for the

establishment of

emissions trading

schemes (ETS) in China

EU-China

emission

trading capacity

building project

Other Partners:

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Modular Structure

BMUB: Capacity Building – Emissions Trading Systems

• Modular structure covering all relevant

ETS topics ranging from an

introduction to emissions trading to

sector-specific MRV

• Presentations are adapted to the

background and particular interests of

the participants with various levels of

detail possible

• Opportunity for in-depth consultations

for specific issues for countries that

are already in the process of ETS

implementation

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Interactive Exercises and Role Plays

BMUB: Capacity Building – Emissions Trading Systems

• Basic Design Decisions for an ETS:

Participants take on the role of major

stakeholders and negotiate to reach a

decision on the design elements of an

ETS for a fictitious country.

• Emissions Trading Implementation –

Allocation: Participants take on the role

of the operator and the competent

authority in the allocation application

process.

• Compliance Cycle and Carbon

Trading Transactions: Participants take

on the role of an operator of a

compliance entity and develop a trading

strategy for a fictitious company.

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Context and Country Specific Adaptation

BMUB: Capacity Building – Emissions Trading Systems

• Joining forces with local partners

to make sure that the training

concept incorporates existing

background knowledge and is

adapted to the local context

• Context and country specific

adaptation of existing teaching

material

• If necessary, providing

information in the partner country

language

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Comprehensiveness and practical experiences

BMUB: Capacity Building – Emissions Trading Systems

• Focus on government perspective because key

target group are government officials

• But involve all stakeholder groups to show a

comprehensive picture of emissions trading in

Germany/Europe

• Show practical experiences (competent

authority, companies subject to emissions

trading, financial and other service providers as

well as researchers)

• Large pool of renowned experts available as

trainers

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Programme activities to date

BMUB: Capacity Building – Emissions Trading Systems

Partner Country/ Institution Topics Target Group Format, Place Duration, Time

China/ NDRC Conceptual ETS Issues Government officials, Researchers Study Tour; Berlin, Munich 3w, 4/2012

Kazakhstan/ KazNIIEK Sector-specific MRV Government officials, Industry

Workshop; Astana 4d, 9/2012

China/ Shenzhen Pilot ETS Conceptual ETS Issues Government officials Study Tour; Berlin, Munich 2w, 9/2012

South Korea/ MoE, GIR

Conceptual ETS Issues

Government officials, Industry

Workshop; Seoul 4d, 10/2012

Kazakhstan/ MoE, KazNIIEK MRV, Registry Government officials Study Tour; Berlin 1w, 2/2013

Chile/ MoE Conceptual ETS Issues Government officials Workshop; Santiago 3d, 6/2013

South Korea/ MoE MRV and Allocation Government officials Expert Consultation; Seoul 1w, 7/2013

South Korea/ MoE, GIR MRV, Allocation Industry, Media Study Tour; Bonn, Saarland 1w, 10/2013

Kazakhstan/ MoE, Caspian Exchange Trading Government officials, Industry

Workshop; Astana 3d, 5/2014

Kazakhstan/ MoE, Zhasyl Damu Verification Government officials, Verifiers Workshop; Astana 3d, 7/2014

Various (Eastern Europe)/ ClimaEast MRV, ETS Basics Government officials Study Tour; Berlin, Poland 1w, 9/2014

China/ GIZ, NDRC MRV, ETS Government officials Study Tour; Berlin, Munich, Leipzig 2,5w, 10/2014

Ukraine/ MoE MRV, Legal Requirements

ETS

Government officials

Study Tour, Berlin 1w, 10/2015

China/ GIZ, NDRC MRV, ETS Government officials Study Tour; Berlin, Munich, Leipzig 2,5w, 10/2015

Mexico/ GIZ, MoE Verification, Accreditation Government officials Workshop; Mexico City 3,5d, 10/2015

China/ ICF, SinoCarbon, DRCs MRV, ETS Government officials Study Tour; Berlin, Leipzig 2,5w, 12/2015

Angelika Smuda

Federal Ministry for the Environment, Nature Conservation, Building and Nuclear

Safety

Division KI I 3 – Legal Issues Climate Policy and Energy; Emissions Trading