Article 6 Paris Agreement

Carbon finance under Article 6: What's at stake?

A new guide from Carbon Market Watch explains how countries can use Article 6 of the Paris Agreement to cooperate on emission reductions.

The guide also highlights the key issues that need to be resolved in order to make Article 6 effective.

Article 6 of the Paris Agreement allows countries to voluntarily cooperate with each other to achieve emission reduction targets set out in their nationally determined contributions (NDCs). This cooperation can take a variety of forms, including:

• Joint implementation: Two or more countries work together to implement emission reduction projects in each other's countries.
• Emissions trading: Countries can trade emissions credits, which represent reductions in emissions, with each other.
• Other cooperative approaches: Countries can also cooperate on other approaches to reducing emissions, such as developing new technologies or promoting sustainable practices.

Article 6 is an important tool for countries to achieve their climate goals. By cooperating with each other, countries can pool their resources and expertise, and reduce the cost of emission reductions. However, there are a number of challenges that need to be overcome in order to make Article 6 effective.

One challenge is ensuring that Article 6 does not lead to double counting of emissions reductions. This means that countries need to develop robust accounting systems to track the emissions reductions that are achieved through cooperation.

Another challenge is ensuring that Article 6 does not undermine the environmental integrity of the Paris Agreement. This means that countries need to develop clear criteria for approving cooperative approaches under Article 6, and ensure that these approaches are consistent with their NDCs.

Despite these challenges, Article 6 has the potential to play a significant role in helping countries achieve their climate goals. By working together, countries can reduce the cost of emission reductions and accelerate the transition to a low-carbon economy.