Article 6 and MRV

1^st CCAC Household Energy Full Hub Meeting

Daniel Benefoh

(Deputy Director/Climate Change Unit, EPA)

NDC and Article 6

• Ghana published its revised NDC to UNFCCC in November 2021.
• It adopted Article 6.2 cooperative approach to support NDC.
• Mobilise carbon finance for NDC implementation.
• Increase private sector participation in NDC.
• Contribute to local sustainable development benefits.
• Support adaptation actions.
• Contribute global mitigation ambition.

Overview of Ghana’s NDC

• 47 climate actions costing $ 9.3 billion from 2021 to 2030
• Of which, 13 adaptation actions.
• Of which, 34 mitigation actions to save 64 MtCO₂e absolute emissions.
• Of which 9 unconditional mitigation actions (25 MtCO₂eq target).
• Of which 25 conditional mitigation actions (39 MtCO₂eq target).
• of which 23 MtCO₂eq is available for Article 6.2 transactions.

Sectoral actions in the NDCs

• Transport (3 unconditional, 2 conditional actions)
• Energy (5 unconditional, 15 conditional measures)
• Forestry (3 unconditional, 2 conditional)
• Waste (1 unconditional, 2 conditional)
• RAC HFC (1 conditional)

Energy sector NDCs

• Clean cooking (woodlot, efficient kilns, ICS, LPG stoves)
• Nuclear energy programme
• Low carbon electricity (fuel switch natural gas, SC >CC)
• Renewable energy penetration
• Promotion of energy efficiency in homes, industry and commerce.
• Minimization of gas flaring in oil and gas production

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Article 6.2 participating requirements - Ghana

• Creating authorised ITMO for transfer under A6.2 cooperative approach is voluntary.
• Ghana ratified the Paris Agreement in September, 2016.
• Ghana is keeping its updated NDC in the NDC registry.
• Ghana has adopted a single-year target accounting approach based on the NDC.
• Ghana will create, authorise and transfer verified ITMOs in MtCO2eq units.
• Ghana published its 5^th national inventory report and will to do so under the new MPGs.
• Ghana has developed a national Article 6 framework to serve as its national arrangement for:
• Authorising ITMOs
• Tracking (transfer and use) of ITMOs
• Corresponding Adjustment (CA)
• Reporting

Obligations for participating in Article 6.2

• Ensure environmental integrity
• Authorisation (we’ve defined the scope, timing, procedures)
• Additionality (“unconditional NDC” - red list, “conditional NDC + outside NDC” - eligible list)
• Eligible list >> “whitelist technologies” NOT needing to proof additionality)
• Improve biomass/electricity/LPG stove technology is on the whitelist

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• Transparency
• Robust GHG and NDC accounting (developed NDC accounting tool)
• National registry system for tracking ITMOs (www.gcr.epa.gov.gh)
• Apply corresponding adjustment

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• Promote sustainable development
• Alignment with SDG priorities
• Net no harm/safeguards

Operationalising Article 6 in Ghana

• Developing bilateral agreements with Switzerland, Sweden and Singapore to govern A6.2 cooperative approaches.
• Ghana has adopted national Article 6 framework seeking cabinet approval.
• Framework, basis for mitigation activity development backed by a commercial agreement.
• Volume 1 of framework is on Article 6.2 cooperative approach.
• Serves as national arrangement for Article 6.2 and guidance for Voluntary market project.
• Future volume 2 and 3 will be on Articles 6.4 and 6.8 building on 6.2 structures.
• Volume 1 establishes a national institutional arrangement for Article 6.2.
• Volume 1 also establishes Ghana’s carbon registry (GCR).
• Legal backing of volume 1 by EPA Act 490.

Elements of Volume 1

• Eligible mitigation activities (“conditional NDC” and “outside NDC” must be in Ghana’s GHG inventory)
• Pre-authorisation of whitelist (confirmation of automatic additionality)
• Procedures for authorisation (scope, timing, LOA process).
• Institutional arrangement (A6.O, A6.IMC, A6.B and A6.TAC).
• Established mitigation activity development steps.

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• Recognised approved methodology
• Recognised independent entities accredited under CDM, GS, VERA & VCS
• Verification and positive examination.
• Issuance and transfer on GCR
• Corresponding Adjustment approach
• Reporting (Initial Report, Annual Report and Regular Report)
• Settlements (CA Fee, application, listing fee)
• Mitigation ambition and Adaptation

MRV and Safeguards

• Only authorises eligible list but NOT Red list.
• Accepts methodologies under CDM, ISO, GS, VERA & VCS.
• Recognised independent entities accredited under CDM, GS, VERA & VCS.
• Independent entities must work with local experts.
• Independent entities to ensure alignment between project and NDC baselines.
• All ITMOs transfers can only occur on Ghana’s Carbon Registry
• Ghana to apply corresponding adjustment using averaging approach to discount.
• Reporting (initial report, annual information and regular information)

Reporting

• Content, frequency/timeline and format defined in A6.2 guidelines and MPGs.
• Initial report - prepared prior to authorisation statement (template in volume 1).
• Annual information - electronic format in volume prepare by 15th April.
• Regular information - prepared as annex to BRT by 2024.
• Ghana will meet reporting using:
• National GHG inventory arrangement
• NDC accounting tool
• Ghana carbon registry

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Institutional arrangement for Article 6.2 in Ghana

Activity development steps

Options for authorisation, issuance and transfer of ITMOs

Unique serial numbering of ITMO on GCR based on section V.A of Decision 2/CMA.3

ITMOs transfer, use cases and adjustments

Activity sourcing

Bilateral agreements

• Ghana - Switzerland Agreement (Signed in 2020, aiming to transfer 5 MtCO₂eq. To direct invest $100m and leverage $500m by 2030).
• Ghana - Sweden Agreement (finalising text for legal review)
• Ghana - Singapore Agreement (Aiming to finish in Q3 and develop project in Q4)

Private sector engagements

• Klik Foundation (five in activity pipeline including cookstove, HFC in RAC sector).
• Mercuria energy (exploring cookstove, REDD+/forestry projects).
• Trafigura Group Pte Limited (Identified liquid waste management project).
• Burn International (initial contact and discussion on cookstove).
• Tullow and Forestry Commissions (Exploring jurisdictional REDD+ project under VCM).
• ENI s.p.a, UNDP and Forestry Commission exploring large scale nature-based solution REDD+ programme.
• Jospong Group and UNDP (three compost sites)
• UNDP - Rice AWD

Project pipeline

Concluding remarks

• ICS is a major part of Ghana conditional NDC.
• ICS is part of the eligible list and the whitelist technologies for 2021-2025.
• ICS features strongly in Ghana’s Article 6.2 pipeline.
• Experience from CDM and POA is critical form ICS for Article 6.2 and VCM.
• Possibility to transition ICS in under CDM to A6.2
• Rich experience of DOEs and existing methodologies make ICS project attractive.
• Article 6.2 framework highlight the procedures for authorisation, tracking and reporting.
• Ghana is undertaking more stakeholder engagements and capacity building.

Thank you