Status of negotiations on various aspects of Operationalization of Article 6 of Paris Agreement

The Paris Agreement, adopted in 2015 under the United Nations Framework Convention on Climate Change (UNFCCC), represents a landmark global effort to combat climate change. It aims to limit global warming to well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase to 1.5 degrees Celsius. Achieving these goals requires not only national efforts but also international cooperation, including the use of market-based mechanisms to enhance mitigation and adaptation efforts. Central to this Agreement’s success is Article 6, which allows countries to cooperate with each other to achieve their emission reduction targets. It is one of the most important articles in the agreement, as it has the potential to significantly reduce global greenhouse gas emissions.

The operationalization of Article 6 has been a complex and challenging process. Negotiations on various aspects of the article have been ongoing since the Paris Agreement was adopted in 2015. Here is a status of negotiations on various aspects of the operationalization of Article 6 of the Paris Agreement:

Article 6.2 — Cooperative Approaches: This article allows countries to transfer internationally transferred mitigation outcomes (ITMOs) to each other. ITMOs are credits that can be earned by reducing emissions or removing carbon dioxide from the atmosphere. Countries can use ITMOs to meet their own emission reduction targets or to sell to other countries.

Status of Negotiations on Article 6.2

Negotiations on Article 6.2 of the Paris Agreement have been relatively successful, and several countries have already started trading internationally transferred mitigation outcomes (ITMOs). However, there are still some outstanding issues that need to be resolved.

One of the key challenges is how to ensure that ITMOs are real, additional, and permanent. This means that the emissions reductions represented by ITMOs must be real, meaning that they would not have happened without the ITMO project. The emissions reductions must also be additional, meaning that they would not have happened anyway. Finally, the emissions reductions must be permanent, meaning that they will not be reversed in the future.

Another challenge is how to avoid double counting of emissions reductions. This means that the same emissions reduction cannot be counted twice, once by the country where the emissions reduction took place and once by the country that purchased the ITMO.

Despite these challenges, there has been significant progress on Article 6.2 in recent years. In 2021, at COP26 in Glasgow, countries agreed on a set of rules for governing the transfer of ITMOs. These rules are designed to ensure that ITMOs are real, additional, and permanent, and that double counting is avoided. Number of countries have already started trading ITMOs under these new rules.

Overall, the status of negotiations on Article 6.2 is positive. There has been significant progress in recent years, and several countries have already started trading ITMOs. For example, Switzerland has purchased ITMOs from Ghana, and the United Kingdom has purchased ITMOs from Colombia. The trading of ITMOs is still in its early stages, but it is expected to grow significantly in the coming years.

Article 6.4 — Mechanism to Contribute to the Mitigation of Greenhouse Gas Emissions: This article allows countries to implement cooperative approaches to reduce emissions. These approaches can include joint implementation projects and emissions trading schemes.

Status of Negotiations on Article 6.4

Negotiations on Article 6.4 of the Paris Agreement have been more challenging than negotiations on Article 6.2. There are number of complex issues that need to be resolved, such as how to ensure that cooperative approaches are environmentally sound and how to avoid double counting of emissions reductions.

One of the key challenges is how to define a cooperative approach. Article 6.4 does not provide a definition, and countries have different views on what should be considered a cooperative approach. Some countries believe that cooperative approaches can only be between two countries, while others believe that they can involve multiple countries or even non-state actors.

Another challenge is how to ensure that cooperative approaches are environmentally sound. This means that the emissions reductions achieved through cooperative approaches must be real, additional, and permanent. It is also important to ensure that cooperative approaches do not have any negative environmental impacts.

Finally, it is important to avoid double counting of emissions reductions. This means that the same emissions reduction cannot be counted twice, once by the country where the emissions reduction took place and once by the country that participated in the cooperative approach.

Despite these challenges, there has been some progress on Article 6.4 in recent years. In 2021, at COP26 in Glasgow, countries agreed on a set of rules for governing cooperative approaches. These rules are designed to ensure that cooperative approaches are environmentally sound, and that double counting is avoided.

The Supervisory Body for the Article 6.4 mechanism concluded its sixth meeting in July 2023, with key decisions that steer the mechanism closer towards operationalization.

• The Supervisory Body adopted a set of rules for the accounting and reporting of carbon removals under the Article 6.4 mechanism. This will allow countries to participate in the mechanism using carbon removal projects, such as afforestation and reforestation.
• The Supervisory Body also adopted a set of rules for the transition of CDM projects to the Article 6.4 mechanism. This will allow CDM projects to continue generating emissions reductions credits under the new mechanism.

These decisions are a significant step forward in the operationalization of the Article 6.4 mechanism. The mechanism is expected to play a key role in helping countries achieve their climate goals by providing a framework for international cooperation on emissions reductions.

The Article 6.4 mechanism is a complex mechanism, and it is important to note that there are still several outstanding issues that need to be resolved. However, the decisions made by the Supervisory Body are a positive sign that the mechanism is on track to be operationalized in the near future.

Article 6.8 — Non-Market Approaches: This article establishes a mechanism to facilitate the implementation and promote the use of sustainable development mechanisms. Sustainable development mechanisms are projects that reduce emissions and contribute to sustainable development.

Status of Negotiations on Article 6.8

Negotiations on Article 6.8 of the Paris Agreement are still in the early stages.

One of the key challenges in negotiating Article 6.8 is to develop a framework that is effective and efficient, while also ensuring that it is fair and equitable. Another challenge is to ensure that the mechanism is aligned with the other provisions of the Paris Agreement, such as the Nationally Determined Contributions (NDCs).

Despite these challenges, there has been some progress on Article 6.8 in recent years. In 2021, at COP26 in Glasgow, countries agreed to a set of workstreams to advance the development of the mechanism. These workstreams are focused on the following areas:

· Scope and criteria for sustainable development mechanisms: This workstream is focused on developing a definition of what constitutes a sustainable development mechanism and establishing criteria for projects to be eligible to participate in the mechanism.

· Institutional arrangements: This workstream is focused on developing the institutional arrangements for the mechanism, such as the governance structure and the process for approving projects.

· Accounting and reporting: This workstream is focused on developing rules for accounting and reporting emissions reductions and sustainable development benefits from projects under the mechanism.

The workstreams are expected to continue working on these issues in the coming months and years. In addition to the workstreams, there have also been several other initiatives related to Article 6.8. For example, the UNFCCC has established a Sustainable Development Mechanism (SDM) registry to track the implementation and progress of SDM projects. The SDM registry is expected to play an important role in the operationalization of the Article 6.8 mechanism.

Overall, the negotiations on the operationalization of Article 6 have been making progress, but there are still several outstanding issues that need to be resolved. It is important that countries continue to negotiate in good faith so that Article 6 can be operationalized earliest. Once these challenges are resolved, Article 6 can be a powerful tool for reducing global greenhouse gas emissions and achieving the goals of the Paris Agreement.