Introduction
The Paris Agreement a legally binding international treaty on climate change, set out a collective goal for international climate change action – to hold the increase in the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognizing that this would significantly reduce the risks and impacts of climate change; increasing the ability to adapt to the adverse impacts of climate change and foster climate resilience and low greenhouse gas (GHG) emissions development, in a manner that does not threaten food production; and making finance flows consistent with a pathway towards low GHG emissions and climate-resilient development.
The Paris Agreement embodies a new approach to international climate policy by requiring all parties to undertake and communicate ambitious efforts as response to climate change as their nationally determined contributions (NDCs). The NDCs shall include efforts to reduce national emissions and adapt to the impacts of climate change, shall also represent a progression over time, while recognizing the need to support developing countries for the effective implementation of this agreement and the achievement of the long-term goals.
Article 6 of the Paris Agreement provides an opportunity for countries to achieve or improve the ambition of their NDCs, to promote sustainable development and environmental integrity. Article 6 provisions use of voluntary cooperation in the implementation of NDCs via market and non-market-based approaches i.e., the implementation of climate change mitigation and adaptation plans.
Cooperative approaches under Articles 6.2 and 6.3: The Article 6.2 and 6.3 provisions application of voluntary cooperative approaches (collaborative market mechanisms) and involve the use of ITMOs towards nationally determined contributions, promote sustainable development and ensure environmental integrity and transparency, including in governance, and shall apply robust accounting to ensure, inter alia, the avoidance of double counting, consistent with guidance adopted by the COP/MOP. They offer a “decentralised” and country-led approach to the governance of cooperative approaches, but place safeguards at the level of the UNFCCC to ensure the integrity of mitigation outcomes when they are transferred internationally and used to help achieve NDCs.
The UNFCCC-governed crediting mechanism under Articles 6.4 to 6.7: This recognises the value of having a centralised, international crediting instrument under the UNFCCC, with assured quality and fungibility of the emission reductions, that may be used by all countries to help achieve their NDCs and support their sustainable development.
The framework for non-market approaches under Articles 6.8 and 6.9: This recognises that the substantial portion of climate action does not engage market approaches, contributes to the achievement of NDCs, and needs promotion and coordination.
Article 6 paves the way for evolved priorities and new innovative approaches and guidance for how this cooperation may function and to ensure that appropriate safeguards are in place.