Article 6 of the Paris Agreement allows countries to cooperate in the implementation of their climate actions and thus raise the ambition of their contributions together. One item of discussion for the implementation of the new mechanism is a stronger use of benchmarks for the determination of achieved emission reductions. Many had criticised the project-specific approach of the Kyoto mechanisms as too subjective and connected to high transaction costs. According to their advocates, the stronger use of benchmarks is to establish an objective basis of calculation and reduce transaction costs. Experience with use of benchmarks has already been gained in national emission trading systems like those of the EU and Switzerland.
Against this background, the project will analyse a range of design questions for the new mechanism: