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Research on the Corresponding Adjustment Method of Article 6 of the Paris Agreement: Focusing on the Relationship between ITMO and Emissions Trading Scheme
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파리협정 제6조의 상응조정 방식에 관한 연구: ITMO와 배출권거래제의 연관성을 중심으로

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Type
Academic journal
Author
Park, Soonchul (한국생산기술연구원) Oh, Chaewoon (녹색기술센터)
Journal
The Korean Society of Climate Change Research Journal of Climate Change Research Vol.11 No.3 KCI Accredited Journals
Published
2020.6
Pages
163 - 176 (14page)
DOI
10.15531/ksccr.2020.11.3.163

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Research on the Corresponding Adjustment Method of Article 6 of the Paris Agreement: Focusing on the Relationship between ITMO and Emissions Trading Scheme
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Abstract· Keywords

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In the negotiation to design the method of corresponding adjustment in the issuance, transfer, and acquisition of internationally transferred mitigation outcomes (ITMOs) between or amongst countries under article 6 of the Paris agreement, Korea based its position on merits and demerits of four major options of i) trajectory method, ii) cumulative method, iii) averaging method, and iv) vintage method. However, in the choice of corresponding adjustment method, the effect of domestic conditions of the Emissions Trading Scheme (ETS) has not been substantially considered. Therefore, this paper attempts to calculate and compare the required amounts of ITMOs of four corresponding adjustment methods in accordance with master plan for the 3rd Emission Trading Scheme by considering two domestic conditions of i) ITMOs are to be acknowledged as external reduction of the Korean ETS and ii) ITMOs, once acknowledged under the Korean ETS, are used in fulfilling the NDC mitigation target. This analysis used a series of formulas for quantitative calculation for a respective corresponding adjustment method. In the second place, qualitative analysis is also considered. Quantitative analysis showed that the trajectory method can be preferable under operation of ETS in association with the nationally determined contribution (NDC). However, the trajectory method has the problem of converting NDC from a single-year target to a multi-year target, and the required amount of ITMOs can differ depending on type of trajectory drawn. Meanwhile, the cumulative method and the vintage method do not necessitate NDC conversion, and they are cost effective due to the smaller amount of ITMOs than expected for NDC usage. Yet, in consideration of domestic ETS, both methods can degrade environmental integrity due to the corresponding adjust made all at once in the singular year of 2030. Lastly, an averaging method is not cost effective because it requires more ITMOs than the expected amount for NDC achievement.
#Paris Agreement (Article 6) #Emissions Trading Scheme #Market Mechanism #Corresponding Adjustment #ITMO

Contents

ABSTRACT
1. 서론
2. 배경
3. 분석 모형과 자료
4. 분석 결과
5. 결론 및 시사점
REFERENCES

References (18)

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Cames, M / International Market Mechanism After Paris google schola GIR / Second Biennial Update Report of the Republic of Korea under the United Nations Framework Convention on Climate Change google schola GIR / National GHG Inventory Report on 2019 google schola Hood, C / Accounting for Mitigation Targets in Nationally Determined Contributions under the Paris Agreement, Discussion Paper on Climate Change Expert Group google schola Howard, A / Features and Implications of NDCs for Carbon Market google schola

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