BTRs: The Link Between Climate Goals And Accountability

• Biennial Transparency Reports (BTRs) are an essential tool to enhance transparency and trust between Parties to the UN Framework Convention on Climate Change (UNFCCC). They are submitted every two years, with the first ones having been submitted at the end of 2024.
• BTRs have four main components: greenhouse gas inventory, information to track progress, adaptation and support.
• BTRs are subject to expert reviews and discussions among Parties to promote mutual trust and learning. 

By Debergh Reinout

“Mutual trust and transparency are the basis of the Paris Agreement, and the ambitious, collective climate action needed to secure our futures. To achieve our goals as a planet, we need to track what each and every one of us is doing. We all need clear and accurate information on actions taken and progress made” [1].

Wopke Hoekstra (Commissioner for Climate, Net Zero and Clean Growth European Commission) [1].

An ever-growing level of ambition is needed to limit global warming to well below 2°C [2]. But to go from ambition to action, trust is essential [3]. Countries need to feel confident that everyone will contribute their fair share. Developing countries especially need to be able to trust that they will receive adequate support from developed countries. “Without it [trust] all efforts fail” as stated by former Executive Secretary of the UNFCCC Figueres [4]. Fortunately, the Paris Agreement foresees an instrument for exactly that purpose: biennial transparency reports (BTRs) [5]. The next section will describe what information BTRs contain followed by an overview of the process within the UNFCCC. 

1. What is in a BTR?

Under the Enhanced Transparency Framework (ETF) of the Paris Agreement, countries have to submit Biennial Transparency Reports (BTRs). Their goal is to enhance the transparency of climate actions and progress towards Nationally Determined Contributions (NDCs) [5]. The Modalities, Procedures and Guidelines, or MPGs for short, state the information to be covered in BTRs, the overall process and flexibilities for developing countries and the overall process (see section “2. The BTR process”) [6]. 

BTRs have four main components. First is the national inventory report (NIR) which is the greenhouse gas (GHG) emissions inventory showing emissions (usually from 1990 onwards) for various sectors and GHGs [6]. There are various requirements such as being consistent with IPCC 2006 guidelines, using a 100-year time horizon global warming potential, reporting in terms of CO2-equivalent, which sectors and GHG to report, etc. [6]. The NIR can be submitted as a separate document [7]. Secondly, information necessary to track progress is required. This includes descriptions of national circumstances (e.g. climate, economy, etc.), a description of the NDC, which indicator is used to track progress, mitigation policies and projections of emissions and removals. This section is thus the key one to check whether a Party is on track or not [6].

Thirdly, while not mandatory, many BTRs contain information on adaptation and impacts [7]. This includes climate risks, adaptation needs and challenges, policies and their implementation, monitoring and evaluation, cooperation and best practices along with measures to avert and address loss and damage. It is a particularly useful way for developing countries to highlight where they need support the most. Finally, of particular interest for developing countries, developed countries need to report on support provided and mobilised. Information to be provided includes the amount of climate finance, financial instruments (loans, grants, etc.), recipients, sectors, channel (bilateral or multilateral), type of support (mitigation, adaptation, cross-cutting), etc. as well as information on capacity-building and technology support. Developing Parties may share information on the support received, but are not required to [6]. Given that climate finance is always a difficult topic at climate negotiations, such reporting will contribute towards accountability and building trust [8, 9]. 

2. The BTR process

Phase 1: Submission

BTRs must be submitted every two years, except for Least Developed Countries and Small Island Developing States for whom it is voluntary. The first BTRs had to be submitted before the 31st of December 2024 [6]. The first Party to have done so was Andorra in October 2023 [7]. Developing countries are supported in their preparation by the Global Environmental Facility [6].

Phase 2: Technical Expert Review (TER)

The TER is conducted by a team of technical experts nominated by countries or intergovernmental organizations, taking into consideration geographical and gender balance. The organisation of the TER is led by the UNFCCC Secretariat [6]. The figure below shows what information is reviewed and which is not. It is key to highlight that the adequacy of NDCs and policies is not evaluated, nor is the provided support reported [10]. In addition, the TER checks for areas of improvement and for developing countries also capacity-building needs [6].

The review can happen remotely or in the relevant country itself, but for the 1st BTR, an in-country review is mandatory. The review team must try to complete the review in 12 months. The same team cannot review two successive BTRs of the same Party [6]. Currently, only for Andorra has the TER been finalized [7]. 

Phase 3: Facilitative Multilateral Consideration of Progress (FMCP) 

The last step is the FMCP, which occurs after the TER is published, and consists of two phases: a written question and answer phase, followed by a working group session (open to observers) during the Subsidiary Body for Implementation (SBI) sessions. Below, a timeline of the process is shown [11].

Both the BTR and TER of the relevant Party are considered in the FMCP. During the SBI session, the Party holds a presentation followed by a discussion. Submitted questions and answers, the presentation, a recording of the working group session and a summary of the FMCP are all published on the UNFCCC website within one month of the session [6]. 

3. Conclusion

This article has provided an introduction into Biennial Transparency Reports. BTRs provide important information that will enhance transparency and enable more ambition and more targeted support to developing countries. The process itself provides a space for discussion and openness between Parties with the aim of strengthening the confidence and trust in each other and in the UNFCCC process. 

References:
[1] First Biennial Transparency Report from the European Union, European Commission, https://unfccc.int/documents/644477, accessed on 25/12/2024. 
[2] UNFCCC Secretariat (28/10/2024), Nationally determined contributions under the Paris Agreement: Synthesis report by the secretariat, https://unfccc.int/documents/641792, accessed on 10/12/2024. 
[3] Baxter, M., What does trust mean when it comes to climate change?, ISO, https://www.iso.org/contents/news/2023/12/trust-and-climate-change.html, accessed on 19/01/2025. 
[4] Schroeder H. et al., (2024), The role of trust in the international climate negotiations, Environmental Policy and Governance, https://onlinelibrary.wiley.com/doi/10.1002/eet.2144, accessed on 19/01/2025. 
[5] Kosma, E., Time For Transparency: Five Key Questions About Biennial Transparency Reviews Ahead of the 2024 Deadline, Center for Climate and Energy Solutions, https://www.c2es.org/2024/07/time-for-transparency-five-key-questions-about-biennial-transparency-reviews-ahead-of-the-2024-deadline/, accessed on 25/12/2024.
[6] Decision 18/CMA.1: Modalities, procedures and guidelines for the transparency framework for action and support referred to in Article 13 of the Paris Agreement, UNFCCC, https://unfccc.int/resource/tet/0/00mpg.pdf, accessed on 25/12/2024. 
[7] First Biennial Transparency Reports, UNFCCC, https://unfccc.int/first-biennial-transparency-reports, accessed on 25/12/2024. 
[8] ANH, H., Tough negotiations on climate finance, Nhân Dân, https://en.nhandan.vn/tough-negotiations-on-climate-finance-post139056.html, accessed on 19/01/2025.
[9] Transparency of international climate finance, European Commission, https://climate.ec.europa.eu/eu-action/international-action-climate-change/international-climate-finance/transparency-international-climate-finance_en, accessed on 19/01/2025.
[10] Technical Expert Review, UNFCCC, https://unfccc.int/technical-expert-review, accessed on 25/12/2024.
[11] Facilitative Multilateral Consideration of Progress, UNFCCC, https://unfccc.int/facilitative-multilateral-consideration-of-progress, accessed on 25/12/2024.