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Carbon Classroom|An article to understand the past and present of global carbon standards

author:AMT Enterprise Source

As an important technical means of carbon governance, carbon standards run through the entire process of global climate governance. Through the Kyoto Protocol and the Paris Agreement, the United Nations requires parties to set emission reduction targets and policy measures, and to monitor and report on them. As a result, the international community has emerged with a unified carbon standard, which not only facilitates international cooperation, but also promotes the development of domestic policies and technologies, and provides guidance and guarantee for achieving emission reduction targets.

Carbon Classroom|An article to understand the past and present of global carbon standards

1. The United Nations Framework Convention on Climate Change (UNFCCC) has led to the standardization of quantitative accounting of greenhouse gases

Tips: 1992: United Nations Framework Convention on Climate Change (UNFCCC)

The second United Nations Conference on Environment and Development (UNCED) agreed on the UNFCCC in Rio de Janeiro, Brazil

Goal: To stabilize greenhouse gas concentrations globally to protect the climate system from harmful anthropogenic interference

Principles: the principle of common but differentiated responsibilities, fairness and justice, and the principle of prudent action

Commitments: The agreement requires parties to take measures to develop and implement appropriate climate change policies and actions in accordance with their domestic circumstances

Review and report: Parties are required to submit national climate change action plans on a regular basis, and to review and report on a regular basis to assess the effectiveness and progress of their mitigation actions

The enactment of this convention marks the elevation of the response to climate change from theory to practical action, stimulates global awareness and action on climate change, and prompts countries to recognize the impact of greenhouse gas emissions on climate change. The Convention requires all Parties to prepare, regularly update and publish national inventories using comparable methodologies agreed upon by the Conference of the Parties. As a result, there is an urgent need for a universally applicable framework of standards for the quantification of greenhouse gases so that countries can compare, monitor and report on their greenhouse gas emissions.

1. In 1995, the Intergovernmental Panel on Climate Change (IPCC) issued the Guidelines for National Greenhouse Gas Inventories.

The Guidelines cover emission standards and specifications in the fields of energy activities, industrial processes, agriculture, land-use change and forestry, and waste, providing a unified methodology for all countries.

2. In 1998, the World Resources Institute (WRI) and the World Enterprise Council Sustainable Development Alliance (WBCSD) jointly issued the GHG Protocol.

The agreement consists of two core standards: the Accounting and Reporting Standards for Business Enterprises and the Project Accounting and Reporting Standards. Detailed guidance is provided to help companies measure and report on their GHG emissions, as well as manage and report on their GHG reduction projects.

3. In 2006, the International Organization for Standardization (ISO) issued a series of international standards for greenhouse gas accounting, ISO 14064.

The standards establish methods for measuring and reporting greenhouse gas emissions, helping to ensure that countries' actions and commitments on climate change are effectively monitored and implemented.

In 2013, ISO 14065 was published, which provides guidance on the accreditation process for verification and certification bodies.

Published in 2019, ISO14064-4 further ensures the standardization of independent verification procedures for project verification.

Second, the Kyoto Protocol has triggered the standardization of carbon offsets

Tips:1997:京都协定书

The Conference of the Parties to the United Nations Framework Convention on Climate Change (COP3) concluded the Kyoto Protocol in Kyoto, Japan

Goal: To achieve a reduction in greenhouse gas emissions in developed countries

Commitments and Mechanisms: Ways to combine emissions reduction commitments with flexible mechanisms. Among them, the most well-known are emissions trading and the Clean Development Mechanism (CDM)

Emissions trading: Allows developed countries to buy and sell greenhouse gas emissions, so that countries with lower costs to implement emission reduction measures can provide emission reduction allowances to other countries

Clean Development Mechanism: Allows developed countries to obtain emission reduction allowances through the implementation of emission reduction projects in developing countries. Such mechanisms promote technology transfer and sustainable development, and help developing countries cope with climate change

Flexibility and implementation: A phased approach with different commitment periods and emission reduction targets. The agreement allows countries to decide for themselves how to meet their emissions reduction targets, giving them more flexibility

The Kyoto Protocol clarifies emission reduction targets for developed countries and develops the concept of carbon market and carbon trading, where countries and enterprises can compensate for their emissions by purchasing carbon emission allowances. However, the implementation of carbon offsets faces the challenge of standardization and normalization. Without a unified standard and assessment system, the carbon offset market could be opaque, unfair and abusive. As a result, the regulatory carbon trading standards and voluntary emission reduction compensation standards have been issued and applied.

1. The Kyoto Agreement standardizes carbon offset projects through the Clean Development Mechanism (CDM).

CDM has established a rigorous project process: during the project review process, the project is required to be verified by a third-party verification body to ensure that the project's technology and emission reduction potential are feasible; During the project implementation process, emission reduction data and project progress must be regularly reported to the United Nations; After the completion of the project, the corresponding number of certification certificates can only be issued after verification by a third-party certification body to confirm that the emission reduction effect of the project meets expectations.

2. In 2003, the World Wide Fund for Nature (WWF) released the first voluntary carbon offset standard - the gold standard

As a non-profit carbon standard setting and certification body, it has established a rigorous project review and certification process, provided unified standards and guidelines, promoted international cooperation and experience sharing, and played an important role in carbon offset standardization.

3. Different organizations have formulated more than a dozen voluntary carbon compensation standards according to different engines

Examples include the Verified Carbon Standard (VCS), the Climate Action Reserve (CAR), the Verified Emission Reduction Standard (VER+), the Chicago Climate Exchange Standard (CCX), the Climate Community Biodiversity Standard (CCBS), and the Plan Vivo System.

3. The Paris Climate Agreement has triggered the standardization of carbon neutrality certification

Tips: 2015: Paris Climate Agreement

The Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) reached the Paris Climate Agreement in Paris, France

Goal: Limit the global average temperature rise to well below 2 degrees Celsius above pre-industrial levels, and strive to limit the temperature rise to 1.5 degrees Celsius and strive to achieve carbon neutrality

National contributions: Parties are required to submit voluntary national contributions, i.e., nationally owned emission reduction targets

Financial support: Developed countries are required to provide financial support and technology transfer to help developing countries cope with climate change and adapt to the impacts of climate change

Global Monitoring and Evaluation: A monitoring and evaluation mechanism for the Global Goals has been established to assess the overall impact of countries' contributions and to continuously update the Targets in line with the latest scientific knowledge

Article 4 of the 2015 Paris Climate Agreement proposes to "strike a balance between anthropogenic greenhouse gas emissions and removals by sinks in the second half of the 21st century", which can correspond to net-zero emissions, representing a new historical stage in global climate governance negotiations. The proposal of the net-zero emission climate goal puts forward an urgent need for carbon neutrality certification standards.

1. In 2010, the British Standards Institution (BSI) formulated and released the first carbon neutrality specification PAS 2060

Building on existing environmental standards such as the ISO 14000 series and PAS 2050, the Code ensures the authenticity and credibility of carbon neutrality by accurately measuring, monitoring and reporting carbon emissions, and taking corresponding measures to reduce carbon emissions. The impact of this standardization is that it drives the practice and recognition of carbon neutrality, promotes action by businesses, governments and individuals to reduce greenhouse gas emissions, and provides important support for achieving global climate goals.

In 2012, BSI further developed PAS 2070 to help cities assess, report and achieve carbon neutrality targets, thereby reducing the impact of cities on climate change.

2. In 2023, ISO released the first international standard on carbon neutrality, ISO 14068

The standard sets out the principles, requirements and guidelines for achieving and declaring carbon neutrality by quantifying, reducing and offsetting carbon footprints, provides a path and standardized approach for organizations to transition to net zero (Net-zero), and provides an effective general management tool for organizations to support the United Nations Sustainable Development Goals, improve environmental, social responsibility and corporate governance (ESG) information disclosure, and formulate scientific carbon neutrality plans commensurate with their own business development.

Fourth, the UAE Consensus accelerates climate action plans

Tips: 2023: UAE Consensus

The Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) reached the UAE consensus in Dubai, United Arab Emirates

Target: Scaling up climate action over the next decade – the overarching goal is to limit global warming to 1.5°C, and countries reach a "historic agreement" to commit for the first time to reduce all fossil fuel use

Funding: COP28 mobilized more than $85 billion for climate action and reached a historic agreement on a loss and damage fund, which is already operational

National contributions: In 2025, countries will submit the next round of national climate action plans aligned with the 1.5C goal, namely new nationally determined contributions (NDCs), to promote the development of new post-2025 global climate finance targets

1. The UAE consensus highlights the "end of the fossil fuel era"

The final agreement of the conference mentions "accelerating the pace of coal power phase-out", "getting rid of fossil fuels in the energy system in a just, orderly and equitable way", and "phasing out inefficient fossil fuel subsidies that cannot solve the problem of energy poverty or a just transition as soon as possible", which is the main cause of climate change, fossil fuels are mentioned for the first time in the outcome document of the climate conference, which means that after COP28, the world will accelerate the start of large-scale fossil energy substitution and energy transition actions. A series of industry standards will also emerge from this.

2. New energy and carbon capture (CCUS) technologies are in wide demand

COP28 proposes to triple the global installed renewable energy capacity by 2030 compared to 2022, attaches importance to the development of low-carbon hydrogen as a zero-emission and low-emission technology, and emphasizes that CCUS is an essential technical means for temperature control. In the future, the relevant norms and guidelines for new energy will be further developed, and the energy consumption and carbon sequestration standards involved in CCUS will also become a national issue.

Summary: The United Nations carbon-related agreements and conferences are of great significance to the formulation and implementation of carbon standards, and provide important support for global climate governance. Throughout the history of global climate governance, the signing of the three major international conventions of the United Nations Framework Convention on Climate Change, the Kyoto Protocol and the Paris Climate Agreement respectively reflects the new opportunities and challenges of dual-carbon development in different historical periods, triggering and opening the standardization of the three key areas of greenhouse gas quantitative accounting, carbon offset and carbon neutrality certification. These standards not only guide countries' actions to reduce emissions, but also promote technological iteration and cooperation, providing substantial support for addressing global climate challenges.

Carbon Classroom|An article to understand the past and present of global carbon standards

For more information, please feel free to send us a private message: AMT Qiyuan Carbon Management Team.

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