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April 8, 2021

Carbon Market Provisions In The Paris Agreement (Article 6)

Filed under: Uncategorized — Chris Chaten @ 1:36 PM

In addition, the Co2 reductions covered by Article 6.4 “may also be used by another party in compliance with its NDCs.” It is essential that Article 6.5 stipulates that these economies “should not” be used by the host nation to fulfill its own NDC, even if they are used to achieve the NDC`s objectives in another country. Similar restrictions probably apply to use under Corsia. “Some countries and stakeholders are concerned that [the transfer of credits from Kyoto to Article 6.4] may overpert the market under the Paris Agreement and have expressed concerns about the robustness of the CDM`s rules with respect to the quality of the RSPs issued.” “I think the big problem is that there are different groups for different parts of the market debate, and that`s what makes it so complicated, because at the end of the day, you have to put all these different dividing lines together in one package.” The precise approach to avoiding the use of emissions reductions by more than one country is one area of significant divergence. It is closely linked to the idea of double counting within the meaning of Article 6.2, with both questions being asked about what is considered “internal” and “outside” the scope of a country`s PNNMs, with some commitments covering only part of the economy. This important provision states that the host of a CO2 reduction project “will benefit from mitigation measures that result in emission reductions that can also be used by another party to fulfill its national contribution.” “It`s hard to imagine how countries will agree on the right options and the right accounting rules and methods, when we can`t even have an agreement to eliminate those that are clearly incompatible… I mean, it`s not even a climate atmosphere, in many cases it`s common sense.¬†This new market is sometimes referred to as the “Sustainable Development Mechanism” (SDM). It would replace the Clean Development Mechanism (CDM) that operated under the previous protocol of the Paris Agreement, the Kyoto Protocol, and which gave industrialized countries legally binding emission targets that were set from early 2008 to 2012. “If you move forward, the role of forests, soils, blue carbon, technological solutions [to remove CO2 from the atmosphere] comes into play. But in the early stages, it is a matter of extracting as much carbon as possible from the global energy system.¬†They only talked about it if a fixed portion of the Article 6 emission credits is set aside and is not used by any party to achieve its climate objectives.

These credits would be eliminated or set aside for the benefit of the global atmosphere as a whole and not for a given state and its CNN. However, it was difficult to determine how this would work in practice. First, the parties can cooperate directly (Article 6.2). This allows for the implementation of emission reduction measures in one country and the resulting emission reductions are transferred to another country and the MNP. This requires a transparent process and an accurate assessment of emissions reductions to prevent emissions reductions from being accounted for more than once – for example, in the emissions inventory of the country where the reduction activities are carried out, and also in the country where the resulting emission reductions are transferred. In addition, national and regional instruments such as the EU Emissions Trading Scheme can be linked to similar systems to create a common cross-border carbon market. While there are no plans for international monitoring of these cooperation activities, the parties have agreed to abide by the Article 6.2 guidelines when implementing this cooperative approach. MJ Mace, negotiator for the Alliance of Small Island States (AOSIS) group, told Carbon Brief: “We absolutely cannot afford to allow markets to undermine mitigation ambitions.”

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