This document outlines challenges and suggestions for developing accounting guidance for mitigation targets in nationally determined contributions (NDCs). It discusses the meaning of "accounting" for NDCs, challenges such as different target types across parties and land-related issues, and suggestions like drawing from existing approaches under the UNFWP Convention and Kyoto Protocol, allowing parties flexibility in methodologies, and identifying remaining issues to resolve.

1. Accounting for Mitigation
Targets in NDCs: Understanding,
Challenges and Suggestions
PEI Liang and FAN Xing
National Development and Reform Commission of China
12 September 2017

2. Outline
• Meaning of “Accounting”
• Challenges in Developing the Accounting Guidance
• Some Suggestions on Procedural and Substantial Issues

3. Meaning of “Accounting”
Explain/record
your targets in
a responsible
manner
What categories
of emissions and
removals will be
included
Paragraph 31(c)-(d)
– gases and sectors
and LULUCF and
forest related issues
Article 6 related
issues
What
methodologies
will be used
Paragraph 31(a) –
methodologies and
common metrics
Paragraph 31(b) –
methodological
consistency

4. Challenges in Developing Accounting Guidance
• Challenge 1: Drawing from the existing approaches
• Multi-year target under the KP and single-year target in the NDCs
• No guidance for diversified targets under the Convention
• BUT…some valuable experience in the biennial report guideline
• Challenge 2: Multiple targets in a Party’s NDC and diversified types of
targets by different Parties
• Explain each and every target in a detailed manner OR explain the main target?
• Specific and tailored arrangements for various types?
• Challenge 3: “Land” related issues
• Terms – AFLOU, LUCF, LULUCF, land, land sectors, forest, forestry or REDD+?
• Activity-based or land-based approaches?
• Domestic surveillance and statistics system?
• General arrangements or detailed rules?

5. Some Suggestions on Procedural and Substantial Issues
• Experience under the Convention and KP
• A paper by the Secretariat to list and introduce the existing relevant decisions
• Workshop(s) to exchange experience on applying the arrangements
• Multiple targets / diversified types of targets
• Choosing a main target to explain and track
• Choosing their own methodologies but ensure consistency
• e.g. For GDP: 2005/2010 comparable price? local currency or USD?
• e.g. For deviation from the BAU: assumptions related to setting the BAU
• “Land” issues
• Taking into account the existing arrangements
• Allowing Parties choosing their own approaches under some general guidance
• Identifying issues to be resolved by the future sessions of CMA

6. Thank You
Merci
PEI Liang peiliang@ndrc.gov.cn
FAN Xing fanxing@ncsc.org.cn