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Solving the MRV challenge for new market-based mechanisms: What can past experience teach us?
Discussion Paper

The new market-based mechanisms (NMBM) being discussed in the climate change negotiations will require a monitoring, reporting and verification (MRV) system that enables a transparent accounting of their contribution to greenhouse gas (GHG) emission reductions. This discussion paper analyses how such a MRV system for the new market-based mechanisms can be designed so that it complies with the criteria of environmental integrity, data availability, transparency, cost-efficiency, a sound institutional framework and transferability. To do so, in a first step, the general academic and political discussion on MRV is summarized; then, lessons are drawn from existing MRV systems; finally, proposals are put forward for the MRV of new sectoral market-based mechanisms.
Castro, P.; Hayashi, D.; Stadelmann, M.; Michaelowa, A.; Cames, M.; Healy, S. (2011)
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Design of the post-2012 climate regime: Sectoral approaches for greenhouse gas mitigation
Discussion paper: Incentives for mitigation investments

In the international climate negotiations new market mechanisms are being discussed. Compared to the project based mechanisms such as Clean Development Mechanism (CDM), such new mechanisms would lead to a change in the role of emitters, investors and governments. The governments of developing and rapidly developing countries must take on a greater responsibility for the implementation of measures in their countries and ensure the actual reduction of greenhouse gasses being strived for.
Dransfeld, B.; Michaelowa, A.; Cames, M.; Healy, S. (2011)
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The “iLUC Factor” as a Means to Hedge Risks of GHG Emissions from Indirect Land Use Change
Sustainability Standards for internationally traded Biomass

This “bio-global” project covers methodical aspects concerning climate protection, biodiversity, water and land use, but also aspects related to bioenergy trade and legal issues (e.g., WTO, bilateral agreements). A key element in that research is to consider and elaborate on opportunities for sustainable biomass feedstock provision which have no negative or even positive environmental, biodiversity, climate, and social trade-offs.
Fritsche, U. R.; Hennenberg, K.; Hünecke, K. (2010)
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Tradable permit schemes in environmental management: Evolution patterns of an expanding policy instrument
This report provides an overview of various instances of the implementation of tradable permits schemes (TPS).
Serre, C. (2008)
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Crediting the displacement of non-renewable biomass under the CDM
Submission by Öko-Institut to the public call by the Executive Board of the Clean Development Mechanism

The displacement of non-renewable biomass under the Clean Development Mechanism (CDM) has been discussed controversially since 2005 when the CDM Executive Board had withdrawn a small-scale methodology for the displacement of non-renewable biomass. Most Parties have acknowledged the considerable benefits for sustainable development of these project types, in particular regarding poverty alleviation and reducing health risks. Furthermore, enabling such projects under the CDM may contribute to changing the geographical distribution of CDM projects since these project types are particularly interesting for countries that heavily rely on biomass as a fuel, as it is the case in many Least Developed Countries (LDCs). This paper first discusses the methodological and legal challenges of crediting such projects and then provides an indicative proposal for two small-scale methodologies. Note that this paper only expresses the view of Öko-Institut and not that of the German government, the European Union or any other organization.
Schneider, L. (2007)
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Policy instruments as innovation in governance: the case of emissions trading
The development of a new policy instrument, “emissions trading”, is analysed as an innovation journey in the realm of governance. Tracking the process by which a novel pattern of social regulation emerges and travels shows how “policy technology” develops according to dynamics of its own, partly independent of policy problems and goals. Interactions across science, policy development and particular domains of governance are critical for the transition between phases: from options to first developments, to experimentation with a prototype and to further diffusion and the formation of a new policy regime. Key factors are the use of openings in existing governance regimes, establishment of linkages with contexts of implementation and the generation of momentum through the “carbon industry” as an emerging service economy.
Voß, J. (2007)
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Tankering strategies for evading emissions trading in the aviation sector
Discussion Paper

In terms of the introduction of emissions trading in the aviation sector, the question arises as to which actors ought to be obliged to participate in emissions trading. One of the possible options being discussed is to oblige fuel suppliers to prove possession of allowances (upstream approach). By comparison, it is being argued that emissions trading can be partly avoided in this case by dint of increased re-fuelling beyond EU boundaries (tankering). The scope of emissions trading would not only thereby be reduced, but also greenhouse gas emissions would actually increase, since more fuel is consumed for every tonne of fuel that has to be additionally carried (fuel penalty).
Cames, M. (2006)
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Competitiveness for Sustainability – Positions and Perspectives
A contribution to discussion at the 2006 annual conference of Öko-Institut e.V.

Focussing on the competition strategy and the priorities outlined in the Lisbon Strategy leads to policy initiatives for rigorous environmental and social standards being put under pressure – inter alia under the heading “Better Regulation”. The argument that environmental and social standards have a negative effect on the competitiveness of the European economy is being raised by various sides. As a result of these developments, Öko-Institut felt urged to become increasingly involved in the relationship between sustainability, innovation and competitiveness in the context of European policy making.
Hochfeld, C.; Schmitt, K.; Wolff, F. (2006)
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Implications of the CDM on other Conventions. The case of HFC-23 destruction
In our analysis we showed that the destruction of HFC-23 in new HCFC 22 facilities under the CDM would likely lead to increased emissions of GHGs as well as ozone depleting substances because production costs of HCFC-22 are expected to be negative when revenues from generated CERs are taken into account. While there is no direct clause on how to handle negative effects on the objectives of other conventions under the Kyoto Protocol or the UNFCCC, there should be great interest in minimising the negative consequences of the CDM for the objective of the Montreal Protocol as well as for climate mitigation, since most Parties are signatories to both treaties.
Schneider, L.; Graichen, J.; Matz, N. (2005)
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Sustainable consumption needs visions
Position paper by the Institute for Applied Ecology (Öko-Institut)

The present position paper “Sustainable consumption needs visions” was elaborated by the authors in a process of debate with numerous staff members of the Institute for Applied Ecology (Öko-Institut), building upon the findings gained through numerous studies and projects. It stakes out the Institute’s position on sustainable consumption patterns and explores the need for action.
Eberle, U.; Brohmann, B.; Graulich, K.; Grießhammer, R. (2004)
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Solving the MRV challenge for new market-based mechanisms: What can past experience teach us?

Design of the post-2012 climate regime: Sectoral approaches for greenhouse gas mitigation

The “iLUC Factor” as a Means to Hedge Risks of GHG Emissions from Indirect Land Use Change

Tradable permit schemes in environmental management: Evolution patterns of an expanding policy instrument

Crediting the displacement of non-renewable biomass under the CDM

Policy instruments as innovation in governance: the case of emissions trading

Tankering strategies for evading emissions trading in the aviation sector

Competitiveness for Sustainability – Positions and Perspectives

Implications of the CDM on other Conventions. The case of HFC-23 destruction

Sustainable consumption needs visions