Advocating for policies and regulations that support climate action
OGCI focuses on practical actions to address the climate challenge. We recognize, however, that well-designed policies and regulations are important tools to facilitate impactful mitigation actions and efforts, as well as means of implementation and support. This is especially important as countries revisit their national determined contributions and prepare for the COP26 climate conference in Glasgow in November 2021.
That is why we are embracing a more proactive approach to advocacy in key areas that support climate action. OGCI’s advocacy practices are based on a set of principles.
Our first Position Papers focus on our priority collaboration areas. They cover policy mechanisms and regulations to support methane emissions reduction, accelerate the deployment of carbon capture, use, and storage (CCUS) and facilitate the use of high-quality Natural Climate Solutions (NCS).
OGCI position on policies to reduce methane emissions from oil and gas
Proposed policies for inclusion in national climate strategies to enhance oil and gas methane emission mitigation
WHY IT MATTERS
Methane is a powerful short-lived greenhouse gas. Ambitious reductions in methane emissions must be achieved by 2030 as part of holistic efforts to meet climate goals under the Paris Agreement.
OGCI is committed to managing methane emissions from oil and gas and supports the implementation of well-designed direct and indirect regulations, at the national and regional levels, tackling methane emissions reduction of new and existing sources.
OGCI supports the implementation of well-designed direct and indirect regulations, at the national and regional levels, tackling methane emissions reduction of new and existing sources. To that end, OGCI proactively advocates for the inclusion, where appropriate, of methane emission reduction targets or other policies in national climate strategies, to help achieve rapid and ambitious methane reductions.
Policies should be designed to achieve verifiable emissions reductions, incentivizing early action. They should stimulate innovation, support transparency and consider the overall cost to industry and society.
Possible mechanisms include standardized Monitoring, Reporting and Verification (MRV) frameworks, technology and work practices, standards and targets.
OGCI position on policies to scale up carbon capture, use and storage (CCUS)
Proposed policies for inclusion in revised national climate strategies to accelerate the commercial deployment of CCUS
WHY IT MATTERS
CCUS is gaining momentum as a growing number of countries set net zero targets and recognize the potential of CCUS as a crucial decarbonization tool for industry and power.
A massive scale-up is needed if CCUS is to develop at the scale required to support the aims of the Paris Agreement – and that will require policies to facilitate and incentivize the deployment of CCUS.
OGCI supports clear reference to CCUS targets in national climate strategies.
Governments should articulate the potential value of CCUS, set up national strategies and targets for its deployment and ensure regulatory development to support and accelerate deployment.
Financial incentives may help facilitate the emergence of a market, either through tax or investment incentives, offsets, public procurement, emissions trading linkages, or through the development of transferable carbon storage units.
OGCI position on natural climate solutions (NCS)
OGCI supports scaling up the use of high-quality natural climate solutions to address climate change
WHY IT MATTERS
Natural Climate Solutions comprise the conservation, restoration and sustainable use of forests, grasslands, mangroves, agricultural soils, wetlands, and other ecosystems in ways that mitigate climate change and enhance climate resilience.
They have the potential to deliver through 2030 at least a third of the cost-effective carbon dioxide mitigation needed for emissions to be aligned with the goals of Paris Agreement.
NCS are complementary to the decarbonization of the energy sector, and can contribute to greater ambition as the world’s energy systems are transformed.
OGCI supports the NCS Alliance Guiding Principles (currently in draft form) as well as the recommendations published by the International Union for Conservation of Nature.
In addition, OGCI believes in the need to rely on the best available framework to qualify NCS credits, integrating high quality practices, such as including high environmental and social integrity and avoiding double counting.
OGCI position on mechanisms to value carbon
OGCI principles on effective policy mechanisms for providing a value to carbon
WHY IT MATTERS
The most efficient climate policies and regulations are those that abate the highest volume of emissions for the lowest cost.
For the majority of sources and sectors, the most effective means of reducing emissions is the application of an economic value (or price) to carbon-based emissions.
OGCI supports explicit market-based mechanisms, such as carbon taxes or emissions trading programmes, to provide a transparent, targeted and technology-neutral pathway to greenhouse gas emissions abatement.
Where a carbon price is not possible, practicable or effective, OGCI supports implicit carbon valuation mechanisms such as cost-conscious performance standards, or financial incentives such as tax credits and subsidies for emerging technologies.
OGCI supports carbon valuation mechanisms that enable maximum abatement through scale, drive emissions reductions at lowest societal costs in a transparent and technology-neutral way, stimulate additional value-generating activity, and incentivize innovation and low carbon technology development.
OGCI position on Article 6 of the Paris Agreement
Proposed policies to enhance the role of Article 6 in raising climate ambition
WHY IT MATTERS
Article 6 aims to help governments to implement their Nationally Determined Contributions by providing space for voluntary international cooperation and the development of effective new market approaches to transfer mitigation outcomes.
It is the only unresolved section of the Paris Agreement rulebook and will be negotiated at COP26.
GCI supports the aim of international cooperation under Article 6 to make it easier to achieve reduction targets and raise ambition.
This cooperation should be based on well-designed mechanisms that incentivize actions that prevent, mitigate or remove emissions, and avoid the double counting of mitigation outcomes transferred internationally.
Article 6 could provide mechanisms to support the acceleration of CCUS.
OGCI welcomes the development of market pilots and clubs among countries willing to pioneer these new mechanisms.