Monitoring, Reporting and Verification Technical Sub-group
PACIFIC ALLIANCE

MRV and Carbon Princing Instruments in thePacific Alliance – Possible Regional Synergies inArticle 6
Cristina Figueroa

Ministry of Environment
Government of Chile

The Pacific Alliance
It was established in 2011 with the objective to“progressively move towards the free circulation ofproducts, services, resources and people and promote
greater growth, development and competitiveness of theeconomies of its members.”
The economies of the PA represent more than one thirdof Latin America’s total GDP (38%). This includes morethan half of regional trade (50%) and just under half ofdirect foreign investment (45%).

• Ecuador and Costa Rica are potential new members• 63 observer states• 37 commitees, groups and technical subgroups
The four countries gather a population of 225
million persons and have an average per capita GPDof USD 18, 000.

Technical Subgroup on MRV and Climate Change (SGT-MRV)The SGT-MRV emerged in 2018 as a response to the 2017 Cali Declaration (June,30), when the PA reaffirmed their individual and collaborative commitments to theParis Agreement.

• It includes strengthening systems of measurement, reporting and verification(MRV) of GHG emissions as well as other contaminants with a view toidentifying possible carbon market mechanisms within the region.

• This approach emphasizes improved comprehension, compatibility, andcollaboration of MRV efforts between countries.

Technical Subgroup on MRV and Climate Change (SGT-MRV)
Pacific Alliance works under a Coordinating
Framework with six working areas:
GHG Inventories
Mitigation Measures
Climate Finance
Carbon Pricing Instruments
GovernanceTransversal Topics

Among the activities and products defined by thecountries:Climate Finance:• Baseline reports MRV Climate Finance (Chile, Colombia, Mexico andPeru)• Community of Practice• Technical exchanges - Chile and Colombia• Spotlight paper: Chile. Aligning the national budget process with theMRV of climate finance: What can be learned from Chile’s sovereign
sustainable bond issuance?
• Implementation of the Climate Financing System in Colombia
Mitigation Actions• Baseline reports MRV Mitigation Actions (Chile, Colombia and Peru)• Report on Effectivity and Relevance of Mitigation Actions• South-South Cooperation Virtual Training Workshops on ClimateMRV in the solid waste sector

Technical Subgroup on MRV and Climate Change (SGT-MRV)
Activities and products defined by the countries related to Carbon Pricing
Instruments:• Lessons Learned: Chile – Canada Experience The Generation and Transfer of ITMOs, NDC
Accounting and Article 6 Mechanisms (Pilot Exercise)• Devaluation and competitiveness in carbon market• VCM status in the Pacific Alliance + Ecuador• Workshop to strength capacities for the implementation of Art 6 in the Pacific Alliance.
• White paper: Potential IPC trajectories in the Pacific Alliance under the context of Art 6; andTechnical note on how to implement Art 6 in Pacific Alliance and a potential regional carbon
market.

To develop some of the activities/products required on Art 6,the SGT-MRV has some support from: Environment and Climate Change Canada (ECCC), and rather recently
 IETA & International Conservation

Regional approach for Art 6 (from the Pacific Alliance)
Advanges• The Pacific Alliance is a trade bloc for a regional
integration with more tha 12 years of operation so
there is an institutional platform to potentially
Exchange experiences and implement Art 6.

Challenges• Better undestanding about the Art 6 and its
differents approaches: 6.2; 6.4 and 6.8. How would
Article 6 work in practice? What would anagreement between countries look like?

• There is an explicit commitment of the countries and • Assess the cost and benefits related with Art 6
the bloc with the Paris Agreement.
implementation (including co benefits) especially as
mainly selling countries• The operation of the SGT-MRV as a platform fordiscussing challenges, sharing knowledge and• Better understanding about how implement andexchanging experiences allows countries to see
evaluate correctly Art 6 safeguards and limits to see
possible practical improvements and enhance their
how we ensure that we generate a robust carbon
transparency framework for the implementation ofmarket avoiding internal conflicts ensuring the wellcarbon pricing instruments.
being of the environment and communities.
• There are complementarities considering that the• Lack of professionals and funding
main emission sector among the countries vary. For
example: Energy in the case of Chile and LULUCF • Improvements in the institutional infraestructre arein the case of Colombia and Peru.
required: MRV, agreements, policies, IT systems,
among others.

Monitoring, Reporting and Verification Technical Sub-group
PACIFIC ALLIANCE

Contact details:
Francisco Pinto

Coordinator of the Technical Subgroup on MRV
Pacific Alliance
Email: fjpintop@gmail.com