Carbon Mechanisms

Background and objectives: With the adoption of the Paris Agreement and the market mechanisms outlined in Article 6, the international community faces a range of new challenges that require the development of application-oriented solutions. In this context, the German Federal Ministry for Economic Affairs and Climate Action (German: Bundesministerium für Wirtschaft und Klimaschutz, or BMWK 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 develops policy papers, position statements, and reports on international climate negotiations and bodies related to Article 6. In addition, the team organises a specialist workshop series to address key topics. 

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

Milestones and outlook: Through the preparation of research papers, committee reports, and the organisation of expert workshops, the project supports international negotiation processes and advances the discussion on selected topics. Information dissemination and engagement with the expert community are continuously enhanced. A central element of this effort is the publication of Carbon Mechanisms Review, a professional journal focused on cooperative climate action and market mechanisms. Additionally, the website carbon-mechanisms.de provides introductory materials, highlights the ministry’s diverse initiatives and activities, and reports on current developments in carbon markets. Public outreach is further supported by flyers, brochures, and content on social media platforms.