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Future Carbon Markets

Recent developments

Offshore Windpark

How to operationalize Article 6.2?

April 2017 - A new research report maps out issues that need to be resolved to operationalize voluntary cooperation under Article 6.2 of the Paris Agreement. A particular focus of the study lies on what may need to be addressed by decisions under the UNFCCC, including those in relation to Nationally Determined Contributions (NDCs). Guidance in these areas needs to be adopted by the CMA at the end of next year. The research was commissioned by Swedish Energy Agency, the Federal Office for the Environment (FOEN) of Switzerland and BMUB. more

CMR 1-2017: Wanted: Real Progress

February 2017 - This issue of the Carbon Mechanisms Review analyses the outcomes of the Marrakech climate summit and looks at the Carbon Market negotiations ahead. Also in this issue, the possible transition of CDM activities, credits, rules and institutions to the Paris Agreement architecture is analysed. The issue also features, among other things, the situation concerning the voluntary carbon market under the new Paris architecture as well as an initiative to set up a regional carbon pricing scheme in the Caribbean. more

What Future for Voluntary Carbon Markets?

January 2017 - More and more individuals and corporations have a desire to offset some of their carbon footprint. To satisfy this demand, a host of voluntary carbon standards have emerged. Originally, these standards operated within the international legal environment of the Kyoto Protocol with legally binding emission reduction obligations for industrialized countries and no such obligations for developing countries. The adoption of the Paris Agreement fundamentally changed the international legal architecture. more

Network meeting discusses mitigation potentials in China’s building sector

As the world’s largest producer of steel and cement, China faces the important task of further reducing the energy consumption and emissions of these traditional industries, while at the same time lowering existing overcapacity. Against this backdrop business representatives and experts were invited to a network meeting held on emissions and developments within the Chinese building sector with special focus on the steel and cement industry. more

CDM Transition Initiative launched during COP22 in Marrakesh

December 2016 - The future of activities under the Kyoto Protocol’s clean development mechanism remains open after the adoption of the Paris Agreement, leaving project developers in limbo and creating disincentives to investment. Several countries have called for a transition of these CDM activities to the new mechanism under Article 6.4 of the Paris Agreement. A new initiative led by Climate Focus and Koru Climate is going to analyze options for taking elements of the CDM forward and provide a platform for interested governments and stakeholders to discuss and refine them. It was launched at the German Pavilion during COP22 in Marrakesh. more

Shaping the Paris Mechanisms

November 2016 - Article 6 of the Paris Agreement established three approaches for countries to cooperate with each other: a new mechanism to promote mitigation and sustainable development, cooperative approaches, and a framework for non-market approaches. The latter two approaches have so far not been clearly defined conceptually. The latest JIKO Policy Paper summarizes the views by Parties and observes that were submitted at the end of September and reveals some sharp differences in opinions on how Art. 6 should work. more

CMR 4-2016: Confrontation or Convergence?

November 2016 - This issue of the Carbon Mechanisms Review looks at the Parties' proposals for the rulebook of Art. 6 Paris Agreement. The contributors to this Review also report, among other things, on how the CDM can be meaningfully used for results-based finance and what progress the idea of a possible EU-internal project mechanism has made. Furthermore,  two commentaries on the recent aviation emissions deal are presented. more

Background

The Paris Agreement and Article 6