Carbon Mechanisms

Background and objectives: With the adoption of the Paris Agreement and the market mechanisms outlined in Article 6, the international community faced a range of new challenges that required the development of application-oriented solutions. In this context, the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (German: Bundesministerium für Umwelt, Klimaschutz, Naturschutz und nukleare Sicherheit, or BMUKN for short) commissioned the Wuppertal Institute for the 2021-2026 project period to provide scientific advisory services and support public outreach efforts in the field of international market mechanisms.

Implementation: Within the framework of the project, the project team developed policy papers, position statements, and reports on international climate negotiations as well as bodies related to Article 6. In addition, the team organised a specialist workshop series to address key topics. 

The Wuppertal Institute also supported the BMUKN in disseminating information and fostering connections with the expert community. This included utilising various media channels with a focus on cooperative climate action and market mechanisms. These efforts aimed to provide both foundational knowledge and updates to the expert community.

Milestones: Through the preparation of research papers, committee reports, and the organisation of expert workshops, the project team supported international negotiation processes and advanced the discussion on selected topics. This included, in particular, a dialogue process with the German business community regarding the use of the voluntary carbon market, analyses concerning the use of Article 6 in "NDC 3.0," as well as studies on capacity building and institutional readiness for Article 6 host countries. All project outputs are available free of charge at carbon-mechanisms.de/en.

Information dissemination and engagement with the expert community were continuously enhanced. A central element of this effort was the publication of Carbon Mechanisms Review, a professional journal focused on cooperative climate action and market mechanisms. The website carbon-mechanisms.de was complemented by a new section on the voluntary carbon market. Public outreach was further supported by flyers, brochures, and content on social media platforms.