The Dawning of a New Era

To the surprise of many, the negotiations at the Paris Climate Summit ended with a general agreement on the use of international cooperation mechanisms, enshrined in Article 6 of the Paris Agreement. While not explicitly mentioning Carbon Markets, Article 6 enables market-based approaches in several ways, covering the needs of all Parties in engaging in international cooperation. One distinct new feature is that the cooperative approaches are open to all Parties for use on a voluntary basis.

The current issue of the Carbon Mechanisms Review "The Dawning of a New Era. Paris Climate Summit Agrees on Substantive package of Market Mechanisms" describes and analyses the Paris outcome with respect to its Carbon Market provisions. It analyses ways to operationalise Article 6.4 and describes the way Japan intends to use its Joint Crediting Mechanism under Article 6.2. In the opinion column, the way the Sustainable Development could be taken up under the new Paris market approaches is reflected upon. This is followed by an analysis of principles and safeguards ensuring environmental integrity of the new mechanisms. Subsequently, the Paris Agreement and its Carbon Market provisions is reviewed by the private sector. Last not least, the issue features an analysis on how Article 6.4 could benefit from the lessons learned from the CDM, and especially its programmatic approach.

The complete issue is available for free download on the Carbon Mechanisms website.