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PARTNERSHIP for MARKET READINESS (PMR) Colombia FINAL Market Readiness Proposal (MRP) VERSION MAY 5, 2014

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PARTNERSHIP for MARKET READINESS (PMR) Colombia FINAL Market Readiness Proposal (MRP) VERSION MAY 5, 2014 PARTNERSHIP FOR MARKET READINESS (PMR) Colombia FINAL Market Readiness Proposal (MRP) VERSION MAY 5, 2014 COLOMBIA DRAFT MRP. February 2014 TABLE OF CONTENTS Introduction to Colombia’s Market Readiness Proposal..................................................5 Acronyms.............................................................................................................................7 Executive Summary .......................................................................................................... 10 Building Block 1. The Big Picture: Colombian Context ................................................... 13 A. Outline of development and climate change (mitigation) objectives (including the transport sector) ....................................................................................................................... 13 B. Overview and composition of country’s greenhouse gas (GHG) emissions, focusing on the transport sector .................................................................................................................. 17 C. Rationale for choosing the transport sector in PMR work ................................................. 21 D. Nationally Appropriate Mitigation Action pledge ........................................................... 21 E. Relevant experience with and/or plans to use market-based instrument(s) for GHG emission reductions .................................................................................................................. 23 Building Block 2. Policy Landscape and Objectives and Preparatory Work to Support and Inform Policy Decisions in the transport sector ..................................................................... 28 A. Policy- mapping to develop a comprehensive picture of inter-dependent policies and issues affecting climate policy objectives in the transport sector ........................................... 29 B. Selection of Market Instruments for Colombia in the transport sector .......................... 33 C. Preparatory work to support and inform policy decisions on possible use of market instrument................................................................................................................................. 34 Building Block 3. Core Technical and Institutional/Regulatory Market Readiness Components ...................................................................................................................... 42 A. Data sources ...................................................................................................................... 42 B. Target/Goal-setting for Market Instruments .................................................................. 43 C. Monitoring, Reporting and Verification (MRV) System for Market Instruments in transport ................................................................................................................................... 44 D. Monitoring ........................................................................................................................ 46 E. Verification ........................................................................................................................ 60 F. Reporting ........................................................................................................................... 64 G. Regulatory and institutional Framework ........................................................................... 68 H. Proposed Regulatory Framework .................................................................................... 71 I. Proposed Institutional Setting ........................................................................................... 72 Building Block 4. Planning for a Market-based Instruments in Colombia’s transport sector ................................................................................................................................. 75 A. Roadmap for evaluation of Market Instrument ............................................................... 75 B. Schedule for Implementation ............................................................................................. 93 Building Block 5: Organization, Communication, Consultation and Engagement ........ 95 A. Key agencies involved in the implementation of the MRP ................................................. 95 B. Capacity Needs Assessment specific to MBI operation ...................................................... 96 C. Sub-national governmental agencies ................................................................................. 97 D. Private sector stakeholders ................................................................................................ 97 E. Civil society and academia stakeholders ............................................................................ 97 Page 2 COLOMBIA DRAFT MRP. February 2014 F. International stakeholders ................................................................................................. 97 G. Awareness raising .............................................................................................................. 98 H. Consultation plans ............................................................................................................. 98 Building Block 6. Summary of Activities, Timeline and Budget ................................... 100 I. Summary budget for PMR implementation ...................................................................... 100 J. Detailed timeline of activities ............................................................................................ 101 K. PMR second round funding .............................................................................................. 106 References ....................................................................................................................... 107 Annexes............................................................................................................................. 109 Annex 1. SECTORIAL MITIGATION ACTION PLAN (SMAP): TRANSPORT SECTOR IN COLOMBIA ................................................................................................................................................. 109 LIST OF FIGURES Figure 1. CLCDS components ............................................................................................................................ 14 Figure 2. Policy groups and measures of the transport PAS ................................................................ 16 Figure 3. Emissions projection 1990-2040. Source: ECDBC U Andes informe final (Marzo 2013), pg 24 ............................................................................................................................................................. 18 Figure 4. CO2eq total emissions for years 1990, 1994, 2000, 2004 and by sector (IDEAM, 2009)........................................................................................................................................................................... 18 Figure 5. Percentage of CO2eq emissions by sector in Colombia (IDEAM, 2009) ....................... 19 Figure 6. CO2 reference scenario emissions for transport sector. Source: ECDBC U Andes informe transporte dic 2013 ............................................................................................................................. 20 Figure 7. CDM portfolio split by sectors, 2013. (Colombia’s CDM portfolio, 2013) ................... 23 Figure 8. Urban transport legal framework. Prepared by authors with data from (Tyler & Acevedo Bohórquez, 2013a) ............................................................................................................................. 29 Figure 9. Top-Down and Bottom-Up approaches to GHG emission MRV. Source: Gruetter Consulting + South Pole, 2013.......................................................................................................................... 45 Figure 10. Theoretical Impact Performance Standard on emissions. Source: Gruetter consulting + South Pole ....................................................................................................................................... 51 Figure 11. Steps to Determine Emissions Urban Transport. Source: Gruetter consulting + South Pole ................................................................................................................................................................. 53 Figure 12. Steps to Determine Emissions per Inhabitant. Source: Gruetter consulting + South Pole .............................................................................................................................................................................. 54 Figure 13. Process Steps to Registration. Source: Gruetter consulting + South Pole ................ 62 Figure 14. UNFCCC Reporting Landscape for Non-Annex I Parties .................................................. 65 Figure 15. Institutional National Structure of Urban Transport (Tyler & Acevedo Bohórquez, 2013b), modified by authors ............................................................................................................................ 68 Figure 16. Key urban transport stakeholders at local level, Bogota’s example (Tyler & Acevedo Bohórquez, 2013b). ............................................................................................................................ 71 Figure 17. Proposed Institutional Setting
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