Consistent with the principles of the multilateral climate policy architecture as set out in the Paris Agreement, countries use or plan to use a widely varied set of emissions reduction policies – both price-based and non-price-based – as tailored to different national circumstances. To achieve the shared objective of net zero emissions, the key challenge is to optimise the combined global impact of all individual countries' emissions reduction efforts. This is what the IFCMA helps to facilitate through data and information sharing, mutual learning and inclusive multilateral dialogue. A better understanding of countries’ mitigation approaches can help avoid negative cross-border impacts such as carbon leakage or trade distortions, while maximising opportunities for innovation, cost savings and shared benefits from the climate transition.
By taking stock of different mitigation approaches, mapping policies to the emissions they cover, and estimating their domestic and international impact, the IFCMA is enhancing understanding of the full spectrum of mitigation approaches deployed around the world and their combined global impact. Simultaneously, by bringing governments and other stakeholders together to explore ways to develop and implement interoperable approaches to measure carbon intensity metrics, the IFCMA will help to limit administrative costs and firms’ reporting burdens, improve transparency and avoid fragmentation of international supply chains.
