Posted an article “Delivering Climate Ambition Through Market Mechanisms: Capitalizing on Article 6 Piloting Activities” on the IISD Knowledge Hub

An article “Delivering Climate Ambition Through Market Mechanisms: Capitalizing on Article 6 Piloting Activities” on the IISD SDG Knowledge Hub.

This article is related to Article 6 of the Paris Agreement, which summarizes various approaches utilizing the market, is under negotiation for implementation guidelines (guidance) to achieve the climate change mitigation goals of each country by 2030 under the Paris Agreement. It also describes the progresses of the market mechanism from the Kyoto Protocol to the Paris Agreement.

In addition, the article introduces that there are many market mechanism schemes are currently in operation all over the world, the possibility that the experience of JCM, which aims at leading decarbonization technologies and implementation of mitigation activities operated by the government of Japan as a pioneer of the market mechanism, would contribute to the negotiations of Article 6 of the Paris Agreement. Also, it describes that the need for markets that maintain national ambitions and environmental integrity and support cooperation with consistent rules in line with the Sustainable Development Goals.

The outline is as described below:

• With negotiations on rules that would operationalize market and non-market mechanisms for the mitigation of GHG emissions ongoing, it remains to be seen how countries will ensure market mechanisms incentivize ambition while maintaining environmental integrity.
• At the same time, the absence of rules to operationalize Article 6 does not prevent parties from having carbon markets, and numerous voluntary schemes are functioning around the world.
• Japan’s Joint Crediting Mechanism, established in 2013 as a way for Japan to cooperate with partner countries to reduce emissions by transferring decarbonizing technologies, in order to contribute to achieving NDCs and sustainable development, is considered a “frontrunner” of Article 6 piloting.
• As parties strive for a transparent, coherent and high-quality approach to carbon markets, experiences, insights, and lessons learned in Article 6 piloting activities could serve as a valuable input to the negotiations.

Related Link

The article is available at:
Delivering Climate Ambition Through Market Mechanisms: Capitalizing on Article 6 Piloting Activities（IISD SDG Knowledge Hub website）