Global Carbon Market – Tunisia

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 Uganda, Chile, Tunisia and India 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.

Greenhouse gas emissions are currently increasing in Tunisia. The country 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. 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 successfully implement Article 6 of the Paris Agreement.

Approach

The project supports the National Agency for Energy Management, the BMU and other actors from administration 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 knowledge back to their organisations. In this way, they are setting up the necessary structures and processes for early participation in the new carbon market instruments. The project has identified pilot projects in the cement industry and presented them to international donor initiatives. The country’s efforts in this regards are embedded in the relevant areas of Tunisia’s long-term climate strategy for 2050.