OECD Secretary-General Report to G20 Finance Ministers and Central Bank Governors on the Work of the Inclusive Forum on Carbon Mitigation Approaches
Overview
The Inclusive Forum on Carbon Mitigation Approaches (IFCMA) has made significant progress over the past six months, following a Ministerial Dialogue held on May 2 and a Plenary meeting on May 22-23. Over 350 delegates from 72 delegations, including 5 international organizations, participated in the meetings.
Key Developments
-
Inclusive Multilateral Dialogue
- Historic Outcomes of COP28: Delegates discussed how to take forward the outcomes of COP28, focusing on domestic and international barriers to accelerating the transition away from fossil fuels.
- International Coordination: Emphasis was placed on ensuring cost-effectiveness and inclusiveness in the global transition, considering the cross-border implications of domestic policy approaches.
-
Carbon Intensity Metrics
- Challenges and Solutions: A first report on carbon intensity metrics was discussed, highlighting challenges in calculating and using these metrics and proposing ways to address them.
- Avoiding Compliance Costs and Fragmentation: Delegates expressed strong support for efforts to avoid excessive compliance costs and the fragmentation of supply chains due to differing methodologies and reporting standards.
-
Pilot Study Results
- Database Development: The first pilot study results were presented, aiming to build a comprehensive database of mitigation and mitigation-relevant policies by the end of 2025.
- Methodological Approaches: New and robust methods were being developed to estimate the effects of policies and policy packages on emissions.
IFCMA Workstreams
-
Stocktake of Mitigation Policies
- Database Development: The IFCMA is developing a database of mitigation and mitigation-relevant policy instruments, collecting granular, country-verified data according to a standardized typology.
- Estimation Methods: New and robust methodological approaches are being developed to link country-specific sectoral models and economy-wide models to estimate the effects of policies on emissions.
-
Carbon Intensity Metrics
- Calculation Challenges: The IFCMA is analyzing challenges related to the calculation and use of carbon intensity metrics, including overlaps and divergences in methodologies across jurisdictions.
- International Cooperation: Efforts are underway to work towards various forms of international cooperation in this area.
-
Inclusive Multilateral Dialogue
- Dialogue Format: Developing, emerging, and developed economies share experiences and discuss a wide range of climate issues in a non-negotiation setting.
- Mutual Understanding: The dialogue aims to build mutual understanding on challenges and approaches across countries, facilitating better international cooperation.
Next Steps
- Scaling Up: The IFCMA plans to scale up its work to a broader set of members based on the pilot study results.
- Global Coordination: The forum remains well-positioned to contribute to better coordinated approaches to global mitigation efforts, particularly within the context of the G20.
- Trade-Related Climate Discussions: The work on carbon intensity metrics is highly relevant to trade-related climate discussions and the development of national and international markets for low-carbon goods.
Overall, the IFCMA continues to advance its goals of optimizing global climate action through better data, policy advice, and increased international cooperation, aligning closely with the objectives of the G20 Task Force on Global Mobilization against Climate Change.
