The pace picked up sharply on Tuesday, with a raft of major initiatives announced by Parties that saw 90 countries commit to cutting methane emissions, and 100 nations pledging to halt and reverse deforestation by 2030.
Elsewhere, the United States and the UK announced they would supply $8.5 billion in funding to help South Africa's energy transition. And Nigeria unveiled its own net zero commitment which, according to BloombergNEF, now means that just 11% of global emissions are not covered by a net-zero goal.
In the meeting rooms, the negotiations over Article 6 got serious as delegates got to grips with the new texts that we shared with you earlier today. Heads of delegations met at midday to discuss the new versions, with many Parties commenting on some of the editing choices made by the co-facilitators.
A lot of options in the texts remain open, and in some cases there are more options than in the Madrid text that we started with yesterday. This proliferation raised some concerns and Parties stressed they want to see the number of options handed up to political leaders reduced as much as possible.
In the draft text on Article 6.2, some of the more contentious issues have been shifted into a draft work programme to be dealt with by the Subsidiary Body for Scientific and Technical Advice (SBSTA) in 2022, and our team says that this proposal didn't appear to be controversial.
The proposal to apply a Share of Proceeds to transfers of ITMOs (reductions) in both Article 6.2 and 6.4 remains a key area of disagreement, with developing nations in favour of SoP from both mechanisms, and developed Parties rejecting it in Article 6.2.
After developing country Parties asked for a capacity building programme to be launched to help them with market development, especially for Article 6.2, the co-facilitators have inserted in the texts a technical capacity building programme that would transfer financial resources and technologies from developed to developing countries.
There was also a stronger focus on Article 6.8 in today's talks, with the Like-Minded Developing Countries and the AILAC groups stressing the need to give equal importance to non-market mechanisms.
Discussions on Article 6 will resume Wednesday morning and are likely to last most of the day, we understand.
These draft decision texts won't be the last versions we'll see this week, and our team estimates that maybe one, possibly two, more iterations will be needed before the technical discussions under SBSTA come to an end and we move to the political phase of the talks.
Catch up with Tuesday's events at the Hub and elsewhere
It was a much busier day at the IETA Business Hub, with six events taking place through the day. We'll be even busier tomorrow, as you'll see.
Canada held a high-level event on carbon pricing that featured Prime Minister Justin Trudeau, Sweden's PM Stefan Lofven, IMF managing director Kristalina Georgieva and Ngozi Okonjo-Iweala, Director-General of the World Trade Organization. You can watch the event here.
Later in the day, IETA hosted a session with the University of Maryland to present the findings of our latest Article 6 modelling. Our CEO Dirk Forrister spoke and moderated presentations from experts and economists. The link to the event is here; use the passcode '=r4.Ggua'.
Wednesday at the IETA Business Hub
IETA’s side event programme on Wednesday starts at 0900 hrs, with Norton Rose Fulbright hosting a session on how to finance the transition to net zero.
Also at 0900 hrs there will be a virtual event hosted by GIZ, Proclima and BMU, addressing how to reduce fluorinated gases and how market mechanisms can be leveraged to help. Registration for this event is here.
At 1030 hrs, Oxy Low Carbon Ventures will hold a discussion on how to ensure complementarity between different climate regimes (such as the VCM, Article 6 and NDCs) in the monetisation of CCS and carbon removal efforts. You'll be able to join the discussion here.
Verra have organised at 1200 hrs a discussion on how best to design and deploy voluntary carbon markets to support more ambitious reduction pledges. This session will be available to virtual participants here.
At 1330 hrs, IETA will host an event that looks at how to integrate carbon removals into existing markets such as the EU and UK ETS. Experts will discuss how to bring carbon removals into compliance markets without losing the incentive to decarbonise. Virtual participants can join here.
ICROA will hold a key event at 1500 hrs on how to scale up the voluntary carbon markets. The panel discussion will focus on demand, supply and transparency in the VCM as key factors in the market growth for 2022. The event will be streamed live here.
At 1630 hrs, IETA CEO Dirk Forrister will welcome Quebec Premier François Legault to the IETA Business Hub, for an armchair conversation.
At 1700 hrs, IETA will present its specially-commissioned COP26 news programme entitled Blue Sky Thinking, created together with respected UK production company ITN Productions. As the programme goes live on the internet, we'll present a taster of the full show and Carbon Pulse's Ben Garside will moderate a discussion with IETA Fellow Joan MacNaughton, Verra CEO David Antonioli, South Pole founding partner Ingo Puhl and ICE managing director of utility markets Gordon Bennett. You can register to follow this event online here.
Our final event for Wednesday will take place at 1800 hrs, when ERCST will present the results and main findings of a project to study the impacts of mitigation policies in Ghana.
And at 1930 hours, we'll welcome all visitors to the IETA COP26 Business Hub for a welcome reception! Join us in Zone D, Hall 4, Pavilion 94.