Multijurisdictional Approaches to Carbon Pricing: Integrating Design Elements for a Low Carbon Club

Country-level climate change commitments, known as Nationally Determined Contributions under the Paris Agreement, are based on a bottom-up approach that encourages national and subnational action in order to accelerate ambition. The Paris Agreement also mentions the option for countries to put in place “cooperative approaches” which opens up the possibility to cooperate bilaterally or multilaterally under the UNFCCC framework.
In addition, the accompanying Decision to the Paris Agreement includes several provisions encouraging and welcoming the participation of nonparty stakeholders, including cities and subnational governments, in facilitating the implementation of climate policies. This opens the door for countries and nonparty actors to form and participate in a “low carbon club”, also referred to as a multijurisdictional cooperative approach (MCA).
On December 4, 2015, the Stanley Foundation and Climate Strategies co-hosted a workshop in Paris where experts from academia, industry, government,and international organizations convened to foster a greater understanding of multijurisdictional approaches to carbon pricing within the context of a low carbon
club.
The aim of this workshop was to build on discussions started at the second Global Climate Policy Conference, organized by the Stanley Foundation and Climate Strategies and held in spring 2015 in New Delhi, India, and continued in two subsequent workshops. The first workshop was hosted by the Stanley Foundation, Climate Strategies, the International Centre for Trade and Sustainable
Development, and the Institute for Sustainable Development and International Relations in July 2015, and focused on the definition and role of, and interest in developing, low carbon clubs. The second discussion was held at the Stanley Foundation’s 56th Strategy for Peace Conference in October 2015 and focused on designing elements for a robust carbon pricing club.
Author: E. Arcese & J. McDonald
Year: 2016
Type: Final paper
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