A stakeholder consultation workshop to discuss market mechanism under Paris Agreement was held in the Ministry of Environment, Forest and Climate Change today. The focus of the consultation workshop was to discuss the features, design and safeguards of the new market mechanism that will be put in place for the post-2020 period and also assess its linkages with the pre-2020 market mechanism, particularly the Clean Development Mechanism (CDM).
There has been a renewed focus on designing efficient, effective and equitable carbon markets Under the Paris Agreement. Article 6 of the Paris Agreement includes a number of concepts related to market mechanisms – like “cooperative approaches”, “internationally transferred mitigation outcomes”, “sustainable development mechanism” and “non-market approach”. These concepts have been undergoing discussion in subsequent Conference of Parties (COPs).
India has significant experience of implementing projects under CDM of the Kyoto Protocol. However, in view of the evolving climate realities and the changed context in the post-2020 period, wherein all countries have submitted their Nationally Determined Contributions (NDCs), the features of the New Market Mechanism are being negotiated that would help achieve the goals of Paris agreement and support NDC implementation. It is expected that this will be advantageous for developing countries like India who have benefitted from CDM. It is important to ensure that the restrictive practices under CDM, including unilateral measures related to utilizing Certified Emission Reductions (CERs) be avoided under the new mechanisms. In addition, modalities for transition of CERs and CDM methodologies were also discussed. It was also decided to constitute small groups to work further on the issues to enhance understanding on the issues.
The workshop chaired by Additional Secretary, MoEF&CC, Shri A.K Mehta and guided by Joint Secretary, MoEF&CC, Shri R. S. Prasad and DG, TERI Dr. Ajay Mathur.