Tunisia takes part in the global carbon market

Project description

Title: Global Carbon Market
Commissioned by: German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU)
Country: Tunisia
Lead executing agency: National Agency for Energy Management, ANME
Overall term: 2018 to 2021

Context

For the German Government, a global carbon market is an important instrument in international climate protection. Emissions trading allows greenhouse gas emissions to be reduced first and foremost where the cost of doing so is lowest. This advantage makes climate protection more cost-effective. Carbon markets can therefore help countries to set more ambitious targets for reducing emissions and encourage the private sector to ensure that their investments are more climate-friendly.

In 2008, the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) launched an initiative to support partner countries in using flexible mechanisms under the Kyoto Protocol, such as the clean development mechanism and joint implementation. In the Kyoto Protocol, industrialised signatory countries agreed to reduce greenhouse gas emissions. The Global Carbon Market project is part of the BMU initiative and supports Chile, India, Tunisia and Uganda in their efforts to implement the objectives of the initiative.

Market mechanisms and other forms of cooperation are also mentioned in Article 6 of the Paris Agreement, the successor to the Kyoto Protocol. This expresses the resolve of the signatory countries to turn such instruments into fixed components of the new climate regime. The project contributes to the practical implementation of Article 6.

Even though greenhouse gas emissions continue to rise at present in Tunisia, the country is aware of its vulnerability to climate change and the resulting environmental, social and economic impacts. It has set itself ambitious goals in the context of the Paris Agreement. Tunisia’s contribution is to reduce CO2 intensity by 41 per cent by 2030 compared to levels in 2010. 

The government is planning comprehensive reductions in the areas of energy, transport, industry, agriculture, waste management and wastewater. Using national and international market mechanisms could be a lever to curb greenhouse gas emissions. Tunisia intends to fund the associated costs through national and international finance sources and instruments.

Objective

Public and private decision-makers are taking part in international negotiations on new carbon markets. They are creating the necessary structures and processes to implement Article 6 of the Paris Agreement. Tunisian stakeholders are familiar with carbon market mechanisms and are working effectively to achieve the climate target.

Approach

The project supports the Tunisian National Agency for Energy Conservation, Ministry of Local Affairs and Environment and other actors from the public and the private sector. It promotes the development of expertise within the framework of market mechanisms under Article 6 of the Paris Agreement. Representatives of these organisations are participating in international negotiations and transferring the specialist knowledge they gain back into their organisations. 

In this way, they are setting up the necessary structures and processes for early participation in the new carbon market instruments and are also establishing an enabling environment for the creation of a carbon market as an additional source of financing and an incentive tool for investment in low-carbon technologies. Furthermore, the project supports stakeholders through studies, workshops and training courses that aim to scale up a demonstration project.  

The cement industry was secured as a key sector for participating in pilot projects of international initiatives. From a political perspective, the country’s efforts in this regard were embedded in the relevant areas of Tunisia’s long-term climate strategy for 2050 and implementation of the nationally determined contributions (NDCs).

Results

The project has improved carbon market mechanism expertise in the public and private sector through training. 

It has supported the government in its efforts to make Article 6 a priority and to participate actively in negotiations at international level through regional dialogue. 

A monitoring system for greenhouse gases has been set up at all cement plants in the country in order to prepare the cement sector for its potential integration in the post-2020 carbon market mechanisms.