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Strengthening the transformative effect of market approaches under the Paris Agreement

Taxonomy of transformational change characteristics for Article 6 activities

Taxonomy of transformational change characteristics for Article 6 activities


Background and Objectives

Transitioning towards sustainable development and net-zero global greenhouse gas (GHG) emissions will be key to staying within the temperature limits established by the Paris Agreement. The potential contribution of market-based instruments towards these objectives is, however, unclear.

Against this background, the German Federal Environment Agency (UBA) commissioned the project ‘Transformation & Article 6: Strengthening the transformative effect of market approaches under the Paris Agreement’ which is being implemented by UNEP DTU Partnership in collaboration with Perspectives Climate Research and First Climate. The project explores how Article 6 market mechanisms can help countries to achieve net-zero emissions by 2050 and simultaneously contribute to meeting the Sustainable Development Goals (SDGs).


Implementation

The project combines a literature review with semi-structured interviews as well as country and sector analysis. In a first step, the project team explores the characteristics of transformative change relevant to Article 6 in order to develop a conceptual framework. Building on these initial findings, a concept for an incentive structure to support transformative change of Article 6 mechanisms is being developed. Interim results will be summarized and presented to an international community of experts in a workshop. The final results of the project will be announced by the end of 2021.


Milestones and Outlook

The project aims at developing recommendations on how to exploit the potential of Article 6 to support transformative change. Based on insights from the literature review and the interviews, the researchers propose a definition of ‘transformative change’ specific to Article 6: “A fundamental, sustained change of a system that ends established high-carbon practices and contributes to a zero-carbon society, in line with the Paris Agreement goal to limit global warming to 1.5–2°C and the United Nations SDGs.” An interim report will be written on the Article 6 incentive structure for transformative change. Further expected results consist of a discussion paper as input to the workshop and three NDC briefings highlighting the concept of transformation and potential increases in ambition. The project will also deliver key messages and recommendations to maintain environmental integrity while increasing NDC ambitions through Article 6 measures.

Strengthening the transformative effect of market approaches under the Paris Agreement

Role of BMU: Research funding

Lifecycle: 2020-2021

Implementation: UNEP DTU Partnership, Perspectives Climate Research gGmbH and First Climate

Contact:  Anne Götzinger, Anne.Goetzinger@uba.de

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