Tunisia’s Policy for Decarbonization, National
Strategy for the Implementation of Article 6 of theParis Agreement and Expectations for theJCMTunisie

Samir Amous1

Summary•

NDC ambitions (update Oct. 2021) & mitigation potential•

Tunisian Vision towards Art. 6•

Governance of Art. 6•

Procedure schemes•Criteria•

Road map at a glance

1er novembre 2023

2

NDC objectives● Expressed in carbon intensity terms

3

GHG Mitigation Potential (NDC update)● Based on GDP assumptions up to 2030,● ➔ 87.5 MtCO2e over the period 2021-2030● Inconditional emission reduction target is part of the Tunisian domestic policy

4Conditional Emission reductions● Effective potential: 47.8 MtCO2e over period 2021-2030● NDC update mentions: “Tunisia is willing to rely oncooperative approaches for all sources eligible for Article 6
mechanisms: renewable energy, energy efficiency, industrial
processes, solid waste and wastewater management, andmeasures targeting agriculture, forest and land uses”● Although no figure is mentioned, likely significant part of theconditional objectives is potentially to be met through Art. 65•NDC ambitions (update Oct. 2021) & mitigation potential•

Tunisian Vision towards Art. 6•

Governance of Art. 6•

Procedure schemes•Criteria•

Road map at a glance

1er novembre 2023

6

A vision towards
Art. 6 was prepared
and adopted byApril 2023

is structured
around 7 points

71. Promote the use of Article 6– Create project identification and development capacities– Adjust the scope and operating methods of the “Energy Transition FundETF” in order to integrate support for Article 6 projects in theenergy/industrial processes sector, and enable National Energy
Conservation Agency to play an effective role in developing andimplementing Article 6 projects– Create an equivalent to ETF for the other sectors (Ind. Processes, AFOLOU,Wastes)
2. Implement transparent regulations for emission reduction ownership– General principal: Acknowledge ownership to project proponent– Due to Adjustement implications ➔ the DNA will transparently announce
the cases of eventual of partial withholding of emissions reductions8

3. Transparent indication of sources/activities whichemission reduction might be marketed through Art. 6– The list of project activities that are allowed to apply for Authorization/Approvalof transfer under Art.6 are to be Communicated– Projects/programs that are known to be part of the unconditional measures areexcluded– Projects with too favourable profitability or no investment constraints ➔little
chance of passing
Authorized/Approved

theadditionality

hurdleareunlikelytoget– Unless the funders would agree, Projects that receive substantial funding under
the Convention's mechanisms (e.g. GEF or GCF), or that access advantageous
funding lines are unlikely to get Authorized/Approved
94. Withholding Mechanisms– Withholding levels for emission reductions by project type/sector (Energy Efficiency,––

Renewable, cogeneration, processes, etc.) were suggested and duly justified➔ finalfigures will be adopted/communicated as soon as DNA is established
In general, Withholding levels are relatively limited as to encourage project proponents torecourse to Art.6
Applications entering the Article 6 project cycle will pay an initial fixed administrative fee(to guarantee serious applications) + annual fees

5. Use of Withholdings:– to be "frozen" as a provision to guard against the risks of not achieving–––

unconditional targets,
To be used to enhance national objectives
the revenues to be recycled in supporting additional mitigation activities, andPartly used to support capacity development + adaptation/resilience activities +vulnerable groups and to address inequality cases
106. Fiscal treatment of ITMOs’ revenues✓ Like all programmes contributing to energy efficiency and supporting

environment preservation, it was recommended that Art.6 transactions beexempted from VAT✓ To promote Art. 6 project activities, it was recommended to grant a total

exemption from income taxes for the first three years of activity of any project,
and a maximum tax of 10% for subsequent years

7. Promotes the emergence of voluntary Market✓ No links with Art. 6✓ But Tunisia will promote national compensation market + involvement ininternational voluntary markets (not involving Adjustment)11

•

NDC ambitions (update Oct. 2021) & mitigation potential•

Tunisian Vision towards Art. 6•

Governance of Art. 6•

Procedure schemes•

Criteria•

Road map at a glance

1er novembre 2023

12

Implementation of an organisational framework for Art. 6Create a DNA for Art. 6 (will involve 15-20 main stakeholders,including civil society)●Somehow similar to the one established during the CDM period:➢➢➢➢

Conducts the preliminary assessment of mitigation activities that
apply for approval and/or authorization
Eventually requires additional information from petitioners
Issue a favourable or unfavourable decision after 2 review rounds(preliminary phase and final decision)
Analyze the eventual appeals and issue an opinion

13

DNA Secretariat
UGPO (Ministry of Environmenet)● Operationalize the procedures● Prepare and organize the work plan of the DNA● Transmit the Commission's opinions to the public authority responsible forformally taking decisions● Manage the "Article 6 Single Window" on the Ministry of the Environment
website● Verify the admissibility of applications● Publish the decisions formally taken on the website of the Ministry of theEnvironment● Monitor the processes initiated by the projects (e.g. stakeholder consultations)● Promote Article 6 (communication, capacitation, etc.)
14Ministry of Environment● Formally take the authorisation or approval decision, following the opinion

made by the DNA● Send official letters to project proponents/petitioners● Establish Conventions with countries under 6.2● Set up and manage registries● Interacting with Convention counterparts on issues related to 6.4 and 6.2

15

Involved sectoral stakeholders
Ministries, Agencies, Employers' Union, civil society●

Promote Article 6 in their respective sectors●

Prepare financial intermediaries (e.g. FTE, FTI)●

Legislating on the tax rules for addressing the ER revenues●Identification and development of project portfolio16

•NDC ambitions (update Oct. 2021) & mitigation potential•

Tunisian Vision towards Art. 6•

Governance of Art. 6•

Procedure schemes•Criteria•

Road map at a glance

1er novembre 2023

17

Gouvernance Article 6 – Les procédures
Proj.
Activities
underArticle 6.4

Phase 1

Submission ofa DescriptiveDocument(ADD) Article
6.4

Evaluation requirement
to participate
in Article 6.4

DNA Advice
and Minister's
Approval
DecisionIn-depth
assessment

Opinion of theDNA andauthorization
decision by theMinister

Max. Duration: 1 monthApplication for
approval
and/orauthorization,
via submissionof an AIN*Verificationof theadmissibility

Preliminary
Evaluation

Opinion of theDNA on
approval
and/orauthorization

Phase 2Max. Duration: 3 months

Criteria for the Evaluations:● Project-Eligibility criterion● SD criterion● Eligibility criterion for prpject proponent

Proj.
Activities
underArticle 6.2

Submission ofa Descriptive
Évaluation Document
critères(ADDd’éligibilité

In-depth
assessment

Opinion of theDNA andauthorization
decision by theMinister

Max. Duration: 3 months(*) AIN: Activity Information Note(^**) ADD: Activity Design Document

18•NDC ambitions (update Oct. 2021) & mitigation potential•

Tunisian Vision towards Art. 6•

Governance of Art. 6•

Procedure schemes•Criteria•

Road map at a glance

1er novembre 2023

19

15 Project-Eligibility criterion❑ Used to assess the merit of a project to obtain authorization for
the transfer and use of ITMOs under Article 6.2..
❑ It will be up to the project proponent to draw up the arguments
supporting its eligibility, first in an AIN, then to complete it in a
dedicated ADD, based on this grid of criteria

20

Examples21

17 SD criterion

NbrCriteria typeWeighting4

Environmental35%

6Social24%

3

Economic23%

4

Strategic18%

17100%

22

Examples23

Eligibility criterion for project proponents❑ Used to assess the eligibility of a public/private project proponent:• is a natural or legal person governed by public or private law, including aState body or service or acting on behalf of it in the context of a public service
mission,• has the legal, technical and financial capacity to carry out the planned
activity,• has provided a guarantee to finance the restoration of the site(s) at the end of
the life of the activity or in the event of default of the entity in charge ofimplementing the activity❑ Sworn statement:• is not bankrupt or subject to insolvency or Compulsory liquidation• has not been found guilty of fraud, corruption, linked to a criminalorganization, terrorist offences or related to terrorist organizations, money
laundering, forced or child labour• In compliance with his taxes or social security contributions/obligations

24•

NDC ambitions (update Oct. 2021) & mitigation potential•

Tunisian Vision towards Art. 6•

Governance of Art. 6•

Procedure schemes•Criteria•

Road map for Art. 6 implementation at a glance

1er novembre 2023

25

Road map for Art.6 implementation at a glance

Q22023123
4
5Q32023

Q42023

Q12024

Q22024

Q32024Q42024

Establishment of the Institutional andOrganizational Framework

Tax andwithholding
arrangements

Development of the portfolio of eligible projects

Development of monitoring systems

Stakeholder Engagement and Capacity Building26

Thank you for your attention !
Dr. Samir Amous
amous.apex@gnet.tn27