On August 9th and 10th, 2018, in Dakar, a start-up workshop focused on the study of “Opportunities on carbon pricing instruments” was organized by the Ministry of Environment and Sustainable Development (MEDD) in collaboration with the West African Development Bank (BOAD), the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC), the financial partners of the Collaborative Instruments for Ambitious Climate Action (Ci-ACA) initiative, and the UNFCCC Regional Collaboration Center (RCC) in Lomé.
The main objective of this workshop was to launch a study based on the evaluation of various alternatives for the introduction of carbon pricing instruments in Senegal. The expected results are the formulation of recommendations by consultants on how Senegal could use carbon pricing for the effective implementation of its Nationally Determined Contribution (NDC) and participate in market mechanisms under the Article 6 of the Paris Agreement. This analysis is based on the existing legislative and regulatory framework and the experiences acquired by
Senegal under the Clean Development Mechanism (CDM).
he first session on (August 9th) was chaired by Mr. Racine Diallo, 1st of his name, Technical Advisor (CT) to the Minister of Environment and Sustainable Development representing the Minister Mame Diakhou Dieng. Once the participants settled, Mr. El Hadji Mbaye Diagne, Director General of the AEE ( Afrique Energie Environnement) words of welcome was given, on behalf of the President of the Climate Change National Committee (COMNACC). The opening ceremony was marked by three speeches: Mr. El Hadji Mbaye Diagne (COMNACC), Mr. Moubarak Moukaïla (RCC Lomé) and Mr. Racine Diallo (CT MEDD).
The workshop participants were composed of different groups: Technical departments (MEDD, MEP, MAER, DEEC), Private / Industrial sector (SENELEC, SONACOS, SOCOCIM, Dangote, ENERTEC), Representatives of Universities and research institutes (UCAD), Technical and Financial partners (GIZ, APIX, CNCAS, PSE, etc.), Transport sector (CETUD, Road Transport Directorate, other actors (RCC Lomé, UNDP, AEE, COMNACC, PROGEDE II, PNB- SN).
During the first part of the workshop, Mr. Axel Michaelowa (Perspectives Climate Research) and
Mr. El Hadji Mbaye Diagne (AEE) presented different aspects of the study:
– Context and objectives: Different carbon pricing options and international examples, market mechanisms in the Paris Agreement, the national NDC;
– Project organization;
– Methodological approach used:
o Pre-selection of 4 pricing options: i) Emissions trading system (ETS), ii) carbon tax, iii)
tax reforms, iv) the mechanism of reference scenarios and allocation of carbon credits.
o Evaluation of the different options according to the following criteria’s (environmental
efficiency, economic efficiency, socio-economic impacts, political feasibility, institutional feasibility and technical and regulatory feasibility) and indicators (selected according to the national context);
– Results of the preliminary analysis;
– Calendar and next steps.
During the second part of the workshop, group work was carried out with the aim of evaluating the criteria proposed by the consultants, to amend and supplement them, if necessary accordingto the national context and the specificity of the sectors and sub -sectors considered.
ugust 10th, 2018, the second day of the workshop, was dedicated to the finalization and restitution of the group work. For each sector, the groups had to prioritize the pricing instruments proposed by the consultants.
These initial findings from the group work are solid foundations that consultants will use to deepen their analysis. Their proposals will be submitted to an Ad hoc group (the champions among the participants) which will be composed of the main actors of the chosen sectors. The establishment of this ad hoc group will be overseen by the UNFCCC focal point and division head of the DEEC climate change division and COMNACC, on the proposal of the consultants in light of the commitment, interest and stakeholder participation during the workshop.
The submission of the first report by the consultants is scheduled for September 14th, 2018.