Canada makes official a CAD$4.5 million economic support package to the Pacific Alliance countries to strengthen their climate measuring, reporting, and verification systems

August 2nd, 2022.- Canada announced on July 14th a new support package for the Pacific Alliance countries with the objective of strengthening domestic climate measuring, reporting and verification (MRV) systems. The best development and quality of these information systems are the key to design and implement coherent, robust, and effective climate policies.

The announcement was made by the Canadian Minister of the Environment and Climate Change, Steven Guilbeault, at the 29th annual session of the Council of the North American Commission for Environmental Cooperation, held in Mérida, Mexico, where he met with the Secretary of the Environment and Natural Resources of Mexico, María Luisa Albores González, in which he announced CAD$4.5 million for the next four years to support the Pacific Alliance countries.

The member countries of the Pacific Alliance recognize that climate change today represents the main threat to human development, and they also understand that the region is an extremely vulnerable area to its effects. All four countries have made significant efforts to adjust and they have committed to ambitiously reducing their greenhouse gas emissions. Furthermore, today they face the challenge of moving towards a green recovery after the social and economic ravages caused by the COVID-19 pandemic.

In 2018, after the Declaration of Cali 2017, the Pacific Alliance reaffirmed its individual and collaborative commitments to the Paris Agreement, making the decision to strengthen information to monitor the impacts of the implementation of actions, programs, and policies. Under this approach, the countries stressed the need for a better understanding and compatibility of their MRV systems. Then, the MRV Technical Subgroup of the Pacific Alliance (SGT-MRV) comes up as an opportunity to work jointly and collaborate among the countries of the region to address this need.

Thanks to a first support package from the Government of Canada, it was possible to develop and implement a Coordination Framework that guided the work of the SGT-MRV between 2018 and 2021. In this first phase, the focus was on MRV of climate financing, mitigation actions, and carbon price instruments, establishing a broad and active community of exchange and knowledge around the MRV systems in the Pacific Alliance countries.

This second support package, which will be implemented by the Gold Standard Foundation, consolidates the work of the SGT-MRV. It will undoubtedly be a fundamental contribution to continue advancing the robustness, transparency, and harmonization of our MRV systems. As well as an opportunity to continue promoting decision-making based on data and evidence, and improve the implementation of the regional climate agenda.

To start this second phase, the SGT-MRV focal points will come together on August 3rd and 4th in Bogotá, Colombia, to assess the first phase of implementation, as well as officially launch the second phase and define the main milestones to accomplish in the next four years.

Some of the reactions of the governments involved:

Climate change is affecting communities and countries around the world. Global solutions, including Canada’s climate finance commitments, are vital in helping countries not only track and understand their emissions but also increase their climate action. Our engagement with the Pacific Alliance will provide new tools and help national and local governments to build the capacity to establish effective and efficient climate measuring, reporting, and verification (MRV) systems to set mitigation priorities and attract the funding needed to implement their Nationally Determined Contributions (NDC)”.

– Steven Guilbeault, Minister of Environment and Climate Change of Canada

Gold Standard hopes to support cooperation between governments to maximize the impact of climate finance and achieve the ambitions of the Paris Agreement, but also – and this is important – to warrant that this financing offers tangible contributions to the national development priorities of the countries. Pacific Alliance governments and support local capacity to unlock ongoing progress towards the Sustainable Development Goals (SDG)”.

– Margaret Kim, CEO of The Gold Standard Foundation

Monitoring progress in the implementation of mitigation measures and in financing flows are essential to strengthen the comprehensive management of climate change. As well, they contribute to the increase in climate action, directing the country toward a sustainable, resilient, and carbon neutral development.

In this context, the Measuring, Reporting, and Verification Technical Subgroup constitute a valuable space for the exchange of experiences among the countries of the Pacific Alliance, which allows sharing of lessons learned about the national processes underway to implement ambitious climate action, in countries with similar contexts and problems. In this regard, Canada´s support has been essential for the development of the subgroup´s activities and its continuity will allow the feedback of experiences and information to uplift the development of the monitoring systems of the member countries”.

– Milagros Sandoval, General Director of Climate Change and Desertification. Ministry of Environment of Peru

“The technical and financial support provided by Canada for the installation and development of the Pacific Alliance´s SGTMRV was highly successful. We have a community around MRV technical topics that are actively operating. The new support that Canada will provide will be essential to strengthen our work towards more harmonious and sophisticated MRV systems in areas such as mitigation actions, carbon price instruments, and climate funding”.

– Jenny Mager, Head of the Climate Change Division. Ministry of Environment of Chile

From Colombia as the current Technical Secretary of the Pacific Alliance´s SGTMRV, we highlight the value of sharing experiences and learning with other countries in the Region to strengthen MRV and the comprehensive management of climate change. On this matter, having the support of the Canadian government in this process is an opportunity to technically guide the SGTMRV work based on the needs of the countries, and thus promote more robust, transparent, and regionally aligned MRV systems”.

– Alex Saer, Director of Climate Change and Risk Management, Ministry of Environment and Sustainable Development of Colombia

The Government of Mexico recognizes the need to build measuring systems that contain a common structure and methodology but are sensitive and appropriate to the context, which allows having statistical and documentary information, implementer perceptions, beneficiaries understanding, and collective reflections on the processes and results obtained. Therefore, and given that it is essential to develop multidisciplinary work, the task carried out by the Pacific Alliance´s Technical Subgroup of Measuring, Reporting, and Verification has made it possible to promote institutional work. Its continuity will generate a sense of urgency in the governments of the Alliance to democratize access to international resources, guarantee climate action in the territory, and transparency in the use of financing destined to address climate change.

Thanks to exchange actions between similar countries such as those carried out within the framework of this community of MRV experts, international funds will serve to strengthen the priority programs of governments and the needs of the communities most vulnerable to climate change”.

– Agustín Ávila, General Director of Policies for Climate Change of the Ministry of Environment and Natural Resources of Mexico (SEMARNAT) 

Towards Successful Regional Collaboration in MRV of Climate Finance across the Pacific Alliance

A conversation with Alfonso Galarce, Coordinator of Climate Finance in Chile’s Ministry of the Environment

Professionals from the Pacific Alliance countries will carry out training courses on specific MRV subjects

Thanks to the support of Environmental and Climate Change Canada (ECCC), more than 30 professionals from Chile, Colombia, Mexico and Peru will initiate a series of training courses and updating of knowledge on MRV. The courses will be taught by GHG Management Institute under the e-learning modality. Among the topics that will be taught are the measurement of GHG for forestry projects and land use; renewable energy projects and industrial processes.

The trainings are contextualized in the work of the Technical Subgroup on MRV of the Pacific Alliance (SGT-MRV), which has among its objectives the permanent strengthening of capacities within the institutions in charge of designing and implementing climate policy in each of the member countries.

Chile and Colombia share technical experiences in the implementation of carbon pricing instruments

September 25, 2020. In May 2019, in Bogotá, a technical exchange was held between delegations from Chile and Colombia where experiences, challenges and lessons learned were shared in the design and implementation of the first carbon pricing instruments in each country. Processes such as the carbon tax in both countries and the compensation scheme as a complementary instrument were the topics of discussion.

In the case of Chile, this exchange contributed to strengthen the procedures of the Tax Modernization Law (Law 21.210) that modified the green taxes that had been in force since 2017, and incorporated compensation as an unprecedented instrument to complement them.

The main results of this exchange are presented in the document ‘Experience Spotlight: South-South Collaboration. Chile and Colombia Technical Exchange on Offsets’, available in the section of the website dedicated to the Technical Subgroup on MRV of the Pacific Alliance. This bilateral exchange is part of the work established in the SGT-MRV Coordination Framework, and contributed to strengthening institutional capacities in climate MRV systems in the countries of the Pacific Alliance. Both delegations remain in contact, exchanging information and good practices to improve their MRV systems.

National Consultation Process on Climate MRV Priorities

September 25, 2020. In order to discuss national priorities, optimize resources and develop future work, the SGT-MRV coordination is promoting a consultation process in each country of the Pacific Alliance to discuss and define immediate needs for climate MRV systems. The consultation proposes convening various MRV actors who will be invited by the national focal points of the SGT-MRV.

The expected result of these national consultations is an update to the Coordination Framework that guides the work of the SGT-MRV, establishing specific objectives, activities and products in key areas, particularly in relation to mitigation actions, GHG and SLCP emissions inventories and monitoring and reporting of climate finance.

The work to reinforce institutional arrangements and strengthen domestic technical capacities related to climate MRV systems has been envisioned as a dynamic process within the SGT-MRV, understanding that MRV systems constitute a key tool for the design and implementation of effective climate policies.

Countries of the Pacific Alliance advance in strengthening their climate finance tracking and reporting systems

Chile, Colombia, Mexico and Peru launch national studies focused on the measuring, reporting and verification (MRV) of Climate Finance systems. 

September 3, 2020. Climate Finance is a key element to accelerate the mitigation of greenhouse gases (GHG) and other short-lived climate pollutants (SLCPs) and is equally as important for adaptation to climate change. The Technical Subgroup on MRV and Climate Change (SGT-MRV) of the Pacific Alliance, technically and financial supported by Environment and Climate Change Canada (ECCC), supported the development of a baseline analysis on the MRV of climate finance investigated by a national expert in each country.

The objective of the reports was to analyze the gaps related to:

  • Climate finance institutional infrastructure – assessing its governance, methodologies, protocols, regulatory instruments;
  • Climate finance technology platforms and associated initiatives with the register.

The SGT-MRV has defined Climate Finance as one of the main working pillars in its Coordinating Framework. In addition to these Climate Finance reports; in May 2020, in collaboration with the Colombian National Planning Department (DNP), the Ministry of Environment and Sustainable Development of Colombia (MADS) and the Financial Management Committee of SISCLIMA in Colombia (CGF) a series of three virtual exchanges were carried out among technical teams involved in climate finance from each country in order to share experiences, challenges and successes in developing strengthened MRV systems that favor climate policy design and in attraction of investments needed to decarbonize local economies.

The SGT-MRV was created by the countries of the Pacific Alliance, with the principal objective to strengthen and advance the harmonization and alignment of Climate MRV systems for the reduction of GHGs and SLCPs. The SGT-MRV reports to the formal Working Group on Environment and Green Growth (GTAMCV) of the PA. The SGT-MRV will continue exchanging knowledge at the regional level in order to advance the design and implementation of effective climate policies.

The national reports on climate finance MRV systems can be found below:

Chile
Colombia
Mexico
Peru