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The Paris Agreement introduced a bottom-up approach for addressing climate change by enabling countries to pledge individual commitments through nationally determined contributions (NDCs). Furthermore, Article 6 of the Paris Agreement recognizes that Parties may engage in bilateral cooperative approaches, including through the use of internationally transferred mitigation outcomes (ITMOs), to achieve their NDCs. Heterogeneous climate markets may have different governance systems and technological approaches. Information about mitigation outcomes (MOs) or emission reductions is currently collected in a variety of repositories, including spreadsheets and registries, with different levels of information. The differences in these processes may constrain market integration and add to the complexity of tracking and recording transactions. Against this backdrop, there is a need to create a new architecture to support transparency and enhance the tradability of climate assets across jurisdictions while ensuring the integrity of trades. The Kyoto Protocol utilized an International Transaction Log (ITL), operated by the United Nations Framework Convention on Climate Change (UNFCCC), to facilitate communication between registries and maintain a transaction log to ensure accurate accounting and verification of transactions proposed by connected registries. However, under the Paris Agreement, which may rely on a decentralized approach to markets under Article 6.2, climate negotiators are still determining whether a centralized infrastructure should continue, the functions it could perform, and to which market mechanisms or transactions it would apply. Consistent with the bottom-up ethos of the Paris Agreement, there is value in demonstrating an approach to link registry systems in a peer-to-peer arrangement.

Carbon Policy and Trading --- Climate Change and Environment --- Climate Change Mitigation and Green House Gases --- Environment --- Information and Communication Technologies --- Information Technology --- Science and Technology Development --- Science of Climate Change

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On June 1, 2017, President Trump announced the United States' withdrawal from the Paris agreement on climate change. Despite this decision, American firms continued investing in low-carbon technologies and some states committed to tougher environmental standards. To understand this apparent paradox, this paper studies how a weakening of environmental standards affects the behavior of profit-maximizing firms. It finds that a relaxation of emission standards (i) may increase firms' incentives to adopt clean technologies, but not to pollute less; (ii) may negatively affect industry profitability if it is perceived as temporary; and, when this is the case, (iii) the unilateral adoption of stricter standards by large states may increase the expected profitability of every firm.

Climate Change and Environment --- Climate Change and Health --- Energy and Environment --- Energy Demand --- Environmental and Natural Resources Law --- Environmental Policies --- Governance --- Law and Development --- Legal Products --- Legal Reform --- Paris Agreement --- Policy Reversal --- Private Sector Economics --- Science of Climate Change --- Social Development --- Social Policy --- Subnational Regulation --- Technology Adoption

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The International Maritime Organization's initial strategy on reduction of greenhouse gas emissions from ships stipulates that the international shipping sector should assess the impacts on states prior to adoption of the mitigation measures included in the strategy. This assessment should be undertaken as a matter of urgency, and disproportionately negative impacts should be assessed and addressed as appropriate. This paper aims to contribute to this discussion by reviewing the state-of-the-art research on the economic impacts of greenhouse gas mitigation measures on states, using model-based analysis. Specifically, the paper: (i) identifies four areas of economic impacts and their relationships, (ii) compiles the latest findings on the estimated magnitudes of these impacts, and (iii) presents relevant modeling approaches along with best practices for selecting and applying these approaches in impact assessments. The paper concludes that introducing greenhouse gas mitigation measures, such as carbon prices applied to bunker fuels in the range of 10 to 50 USD/ton of carbon dioxide, might increase maritime transport costs by 0.4 percent to 16 percent. However, this would only marginally increase the import prices of goods (by less than 1 percent). For transport choices, the increased cost of maritime transport induced by greenhouse gas mitigation measures might only slightly reduce the share of maritime transport, by 0.16 percent globally. Furthermore, a global carbon tax applied to all transport modes might stimulate a shift toward maritime transport from all other modes. The impacts of a carbon price in the range of 10 to 90 USD/ton of carbon dioxide on national economies are expected to be modest (-0.002 percent to -1 percent of GDP).

Climate Change and Environment --- Climate Change and Health --- Climate Change Mitigation and Green House Gases --- Emissions --- Environment --- Greenhouse Gas (GHG) --- Initial Strategy --- International --- International Economics and Trade --- International Maritime Organization (IMO) --- International Trade and Trade Rules --- Maritime --- Mitigation Measures --- Modeling --- Modelling --- Models --- Reduction --- Science of Climate Change --- Shipping --- Trade and Services --- Transport