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These pages and sections capture news of climate change and stories about the groundswell of climate action by governments, companies, cities, the UN and civil society around the globe. To provide feedback, email us at press@unfccc.int Photo©Naziha Mestaoui

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Photo by: UNFCCC

Development banks, United Nations bodies and other international organizations say they are ready to support the integration of markets and market mechanisms into national climate action plans submitted to the UN as part of the Paris Climate Change Agreement clinched last year.

Markets and market mechanisms are key to driving investment into clean technology, which is in turn crucial for governments to curb emissions and to meet the climate goals agreed in Paris.

In the run-up to adopting the Paris Agreement, countries submitted plans detailing their intended “nationally determined contributions” (NDCs).

At a meeting in Cologne last week, multilateral banks and organizations said they can provide and are already providing experience and resources for strategy development and implementation, legal and regulatory frameworks, carbon market development and technical support, for example in monitoring, reporting and verifying actions to address climate change.

"We’ve entered a new era, one that is all about implementation driven at the national level, guided by the principles and aims agreed to in Paris," said Niclas Svenningsen, the manager at the UNFCCC Secretariat responsible for coordinating the Nairobi Framework Partnership. "These partners bring to the table virtually every resource and range of experience that a government might need to create and implement a climate plan."

The multilateral banks and organizations already have a lot of experience in supporting governments as part of the "Nairobi Framework Partnership". The Nairobi Framework was launched in 2006 by then United Nations Secretary-General Kofi Annan to increase participation in the Clean Development Mechanism (CDM), especially in sub-Saharan Africa. The incentive provided by the CDM, which rewards projects that reduce greenhouse gas emissions, led to the registration of more than 8,000 projects and programmes in more than 105 developing countries.

Following the successful adoption of the Paris Agreement, the Nairobi Framework partners agreed to expand to support implementation of NDCs, with the UN’s Sustainable Development Goals and markets and mechanisms, including the CDM, in clear focus.

Achieving Paris Goals with the Help of Markets a Matter of Survival

At their latest coordination meeting, held in conjunction with Carbon Expo in Cologne, Germany, on 26-27 May, the partners were joined for a roundtable discussion by potential new partners and cooperators, including representatives of the West African Development Bank, Green Climate Fund, Global Environment Facility, the International Renewable Energy Agency and others.

"I’m here because it’s a matter of survival," said Hugh Sealy, a professor at St. George’s University, Grenada. "We’re interested in markets because without them we can’t meet the 1.5-degree goal."

The Paris Agreement’s central aim is to limit average global temperature rise to well below 2 degrees Celsius with a preference for holding this to a safer 1.5 degrees above pre-industrial temperatures. Data show that about one degree of this rise has already occurred.

Markets and market mechanisms like the CDM can increase clean investment by the "orders of magnitude" needed to meet the more ambitious target, critical to safeguarding island nations from sea level rise, said Mr. Sealy, a long-time negotiator on behalf of small island developing states.

St. George’s University hosts one of five Regional Collaboration Centres, which are expected to work closely with the Nairobi Framework partners to implement projects on the ground. The others are in Bangkok, Thailand; Lomé, Togo; Kampala, Uganda; and Bogota, Colombia.

As their next step, the partners will prepare project proposals based on their strengths, knowledge of national priorities, and the results of a recent UNFCCC survey of national needs. They will work together on these proposals on the margins of the Africa Carbon Forum in Kigali, Rwanda, in June, the Asia Pacific Carbon Forum in Jeju Island, Republic of Korea, in early September, and the Latin American and Caribbean Carbon Forum in Panama City, Panama, in late September, with a view to presenting a mix of results and new proposals at the Marrakesh Climate Change Conference in November.

Note: The Nairobi Framework partners and collaborating organizations are:

  • African Development Bank
  • Asian Development Bank
  • Development Bank of Latin America – CAF
  • Institute for Global Environmental Strategies
  • Inter-American Development Bank
  • International Emissions Trading Association
  • Latin American Energy Organization – OLADE
  • LEDS Global Partnership
  • United Nations Conference on Trade and Development
  • United Nations Development Programme
  • United Nations Environment Programme (UNEP)
  • United Nations Framework Convention on Climate Change
  • UNEP DTU Partnership
  • World Bank

Photo credit: UNFCCC

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