August 2019 - Under the current international climate policy regime, market mechanisms are to play a key role in helping countries to achieve their Nationally Determined Contributions (NDCs) and to support an increase of mitigation ambition over time. In this context, the principle of additionality is crucial. It requires that emission credits are only granted for mitigation activities that are not undertaken in a business-as-usual situation.
Future guidance to be adopted by the Parties to the Agreement will have to consider additionality issues of Art. 6 mechanisms and the key role that carbon markets can have in enabling and encouraging greater mitigation ambition and in bringing about sectoral transformation. A new study analyses additionality related issues covered by Art. 6 and suggests options for negotiations and cooperating Parties.