Section 3.4 discussed the role of markets in the post-2020 framework. Table C.1 sets out a spectrum of approaches for international emissions trading, from centralised to decentralised. Any of these would work in concert with other elements of the post-2020 framework, including transparency (section 3.3) and international assessment of countries’ targets (section 3.5).

Table C.1: Possible approaches for international emissions trading in the post-2020 framework


Spectrum of options (from most centralised to least centralised)

Approaches to ensure environmental integrity

UNFCCC oversight of international marketsâ

Institutional arrangements

Common rules

Full set of criteria and processes agreed. All accounting rules agreed under UNFCCC.

UNFCCC sets rules and monitors compliance to agreed principles, standards and accounting rules.

UNFCCC as primary regulator (for example, tracking of units and approval processes
centrally controlled).

Minimum criteria and review

General principles agreed, and minimum standards and common accounting developed. Flexibility for national circumstances. Non-UNFCCC markets seeking recognition assessed internationally.

Set of minimum criteria to guide design and implementation. UNFCCC reviews the conformity of non-UNFCCC approaches
to criteria.

Standard-setting and oversight functions. Capacity-building and information-sharing.

Information-sharing, reporting and assessment

Possible common reporting guidelines and review of approaches though international assessments (section 3.5). This review may not be against internationally agreed criteria.

Individual countries design and implement own approaches. UNFCCC facilitates information-sharing and some support services such as central registries.

Platform for information-sharing, reporting and assessment. Facilitating capacity-building
and information-sharing.


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