International Market-Based Approaches for Raising Climate Ambition

  • Project no.252651
  • Duration 09/2021 - 08/2023

The Nationally Determined Contributions (NDCs) submitted so far by the Parties to the Paris Agreement are not sufficient to meet the joint objective of limiting global warming to 1.5 degrees Celsius. All countries are therefore called upon to raise their climate ambition. This applies in particular to industrialised nations such as Germany. Not only do they bear greater (historical) responsibility for climate change, but they also have the resources needed. One way to increase ambition is to use the "Cooperative Approaches" established under Article 6.2 of the Paris Agreement: These allow a mitigation activity to be implemented in one country, and the resulting mitigation outcomes to be transferred to another country and counted against the NDC there. As a result, such cooperation contributes to an increase in ambition. However, as an EU member state, Germany is bound by the European Union's NDC, which does not provide for the crediting of mitigation outcomes achieved outside the EU.

Against this background, the research project commissioned by the Federal Environment Agency (Umweltbundesamt, UBA) is investigating what other options are available to Germany in using Article 6.2 and how these could be implemented. The project led by the Wuppertal Institute is being conducted jointly with the GFA Consulting Group. The aim of the project is to develop criteria that can be used to identify suitable Cooperative Approaches. The project  is intended to show how Germany could use Article 6.2 and participate in Cooperative Approaches that contribute to an increase in ambition, ensure environmental integrity and achieve contributions to a sustainable transformation.

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