26 November 2012: The UN Framework Convention on Climate Change (UNFCCC) Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG LCA) released additional submissions from Cyprus and the European Commission (EC) on behalf of the EU and its member States and Papua New Guinea on views on the new market based mechanism.

The submissions propose text for a decision by the Conference of the Parties (COP) to the UNFCCC on various approaches, modalities and procedures for the new market mechanism. In doing so, the submissions recall that the purpose of new market mechanisms are to, “enhance the cost-effectiveness of, and to promote, mitigation actions by all Parties, bearing in mind the different circumstances of developed and developing country Parties.”

The submission from Cypress and the EC proposes guiding principles related to: ensuring the voluntary participation of Parties through different forms of implementation, engaging relevant sectors and subsectors, ensuring that mechanisms are in addition to other domestic actions and maintaining robust monitoring and evaluation, excluding Parties’ own contribution, complementing other mitigation actions by developing country Parties, and ensuring good governance, transparency and strong market functions. The submission also outlines definitions, participation, implementation cycles, governance and management structures, coverage, baselines, monitoring and reporting, sustainable development considerations and the sharing of proceeds.

In its submission, Papua New Guinea refers to a framework for various approaches that includes both market and non-market mechanisms, including sector mechanisms and reducing emissions from deforestation and degradation and the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in developing countries (REDD+). The submission from Papua New Guinea further emphasizes the importance of standards that ensure that the various approaches: contribute to sustainable development, deliver permanent, verified mitigation actions, are additional to other mitigation actions, avoids double-counting, build on current infrastructure, are transparent and identifiable.

The submissions from Parties will be considered under agenda item 3(b)(v) of the fifteenth session of the AWG LCA. [Submissions from Parties – Addendum]