Jordan’s Policy Framework for Carbon Markets: A Regional Leader in Climate Action
- lanamayasa22
- Jan 28, 2024
- 3 min read
The Paris Agreement, adopted in 2015, is a landmark global pact that aims to limit the rise of
global temperature to well below 2°C and pursue efforts to limit it to 1.5°C. To achieve this goal,
each country has to submit and implement its nationally determined contribution (NDC), which
reflects its ambition and action to reduce greenhouse gas emissions and adapt to the impacts of
climate change. Article 6 of the Paris Agreement provides a framework for countries to
cooperate in achieving their NDCs through the use of internationally transferred mitigation
outcomes (ITMOs), which are units of emission reductions or removals that can be traded or
exchanged across borders. Participating in carbon markets can offer multiple benefits for
countries, such as enhancing cost-effectiveness, promoting sustainable development, and
stimulating innovation and investment. However, it also poses significant challenges, such as
ensuring environmental integrity, avoiding double counting, and enhancing transparency and
governance. In this context, Jordan has emerged as a regional leader in developing a policy
framework for carbon markets, based on its Article 6 strategy and its national registry system.
This article will examine the main elements, infrastructure, and implementation of Jordan's
policy framework, as well as the opportunities and challenges that it faces in the international
carbon market landscape.
Jordan’s Policy Framework: Scope and Obligations
Jordan’s policy framework for carbon markets, which was drafted in 2023 and is expected to be adopted by 2024, defines the scope and obligations of the country in generating authorising ,and transferring internationally transferred mitigation outcomes (ITMOs) from approved mitigation activities. The policy framework is guided by the principles of promoting sustainable development, ensuring environmental integrity and transparency, applying robust accounting, and achieving higher ambition in mitigation and adaptation actions. The policy framework also establishes the eligibility criteria for mitigation activities and outcomes, which are published on the Ministry of Environment website and reviewed every two years. Moreover, the policy framework outlines the process for approval and authorization of mitigation outcomes, which involves the Ministry of Environment, the National Committee on Climate Change, and the Designated National Authority. By setting out these elements, Jordan aims to operationalize the provisions of Article 6 of the Paris Agreement and its applicable rules, as well as to participate in other international carbon markets, such as CORSIA or voluntary carbon markets¹².
Jordan’s Policy Framework: Infrastructure and Implementation
To support its participation in carbon markets, Jordan has established a robust infrastructure
that includes a national registry system, a measurement, reporting and verification (MRV)
system, and a trading platform. The national registry system is a web-based platform that tracks the generation, authorization, and transfer of mitigation outcomes, as well as the corresponding adjustments to the national emissions inventory. The MRV system is a set of procedures and tools that ensure the quality and accuracy of the data and information reported by the mitigation activities and outcomes.
The trading platform is a digital marketplace that facilitates the
exchange of mitigation outcomes between buyers and sellers, both domestically and
internationally.
Jordan has also explored the potential linkages between its national registry system and the
Climate Action Data Trust, an initiative under the Climate Warehouse, which aims to provide
transparency and access to international market players². Jordan has developed or is planning to develop several mitigation activities and outcomes in various sectors, such as renewable energy, energy efficiency, and forestry. These include solar and wind power projects, building insulation and lighting retrofits, and afforestation and reforestation initiatives.
Jordan faces both opportunities and challenges in implementing its policy framework, such as attracting investors, ensuring compliance, and coordinating with other countries. Jordan seeks to leverage its policy framework to advance its climate action and sustainable development goals, as well as to contribute to the global efforts to limit the rise of global temperature.
Sources:
work_draft.pdf
artnership_March-15contact.pdf
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