Article 6 Design Options

Development of Design Options for the New International Market Mechanisms According to Article 6 of the Paris Agreement

  • Project no. 251247
  • Duration 05/2017 - 04/2020

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:

  • What are options for achieving a net reduction of global emissions?
  • In how far can baselines be established on the basis of best available technology (BAT) values?
  • Which incentives can be created for private companies to participate in Article 6?
  • What are options for increasing the level of ambition of climate contributions?
  • What role can the voluntary carbon market play?
  • What role can Article 6 play on the way towards a (net) zero emission world?