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New Paths to Policy Crediting?

Current JIKO Policy Paper on Policy-based Cooperation under Article 6

October 2018 – With the adoption of Article 6 of the Paris Agreement, former debates about generating carbon credits on the basis of national policies have resurged. National policies have not been eligible as project activities under the Kyoto Protocol’s flexible mechanisms. The Paris Agreement opens the possibility for such policy crediting but also provides an entirely new context: Universal participation, ambitious long-term targets and nationally defined contributions (NDCs) that are to be made more ambitious over time. As this paper shows, these changes in the framework conditions add an additional layer of complexity to policy-based cooperation.

The paper explores the potential for policy-based cooperation by first briefly presenting the regulatory basis provided by the Paris Agreement before outlining a prototype for policy-based cooperation and its key challenges.