Since the first CDM projects were registered under the Kyoto Protocol in 2004, the global carbon market has repeatedly faced a range of fundamental challenges, calling for the development of application-oriented solutions. With the adoption of the Paris Agreement and the market mechanisms contained in its Article 6, the international community is now confronted with a new set of challenges and the need to address key issues once again.
Against this backdrop, the Federal Environment Ministry (BMU) commissioned the Wuppertal Institute to conduct a research and connectivity project. As part of the project on Further Development of the CDM and New Market Mechanisms, the Wuppertal Institute produces research papers in which it analyses current developments in the global carbon market. The studies look at various aspects of the market mechanisms, from evaluating specific technologies and their suitability for use with market-based mechanisms, to conceptional issues concerning the design of the mechanisms to be used in the future. The project team also holds regular expert workshops in which negotiation leaders from the international climate change regime meet with scientists and carbon market players. The workshops serve as a platform for dialogue on the many and varied topics involved, and also enable the exchange of views and experience. With these and other activities, the project provides scientific support for the policy-level negotiation process and also promotes dialogue between policymakers, practitioners, the research community and civil society on current developments in the global carbon market and the challenges they bring.
The Wuppertal Institute project team also supports the BMU in disseminating information and connecting the specialist public via networks. To enable informed dialogue with practitioners in the global carbon market and within the respective research and consulting businesses, the project team publishes the “Carbon Mechanisms Review”, a specialist magazine. Carbon Mechanisms Review appears quarterly in English, takes a critical look at carbon market trends and provides analyses, opinion articles and background information to contribute to the debate. Apart from the further development of the existing mechanisms CDM and Joint Implementation (JI), Carbon Mechanisms Review focuses in particular on the design of the new market mechanisms under the Paris Agreement and also looks at developments concerning market-based approaches beyond the realms of the UNFCCC. These are covered with a blend of editorial articles and guest contributions from highly regarded authors in the respective fields. The carbon-mechanisms.de website operated by the project team takes the form of an information portal, supplying all the latest carbon market news. It provides information on Federal German Government initiatives and publishes the results of studies and research projects funded by the BMU. The service is rounded off with a detailed introduction to carbon market basics and the role the carbon market plays under both the Paris Agreement and the Kyoto Protocol. The project team also supports the Ministry’s public relations work by producing flyers, brochures and content in social media.