The Paris Agreement provides the basis for future international cooperations in the field of climate change mitigation. While truly global in reach, the agreement will however result in an increasingly complex new climate regime: Instead of using a uniform formula, Parties are allowed to autonomously define their NDCs, resulting in a large diversity of contributions (p.ex. single year vs. multi-year targets, intensity targets, non GHG targets such as renewable energy targets). This poses significant challenges for emissions accounting and the transfer of emission units.
A new JIKO Policy Paper explores how these challenges can be addressed by analysing different types of NDCs and assessing their compatibility with the export and use of emission units. On that basis, the authors develop opt-in provisions for Parties willing to participate in unit transfers under the new climate regime and illustrate how potential risks to environmental integrity can be addressed.
The JIKO Policy Paper is available for download online.