This 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. By analyzing the applicability of three policy instruments (renewable energy feed-in tariffs, energy efficiency (white) certificates trading schemes and building codes) this paper finds that policy-based cooperation is associated with significant challenges and suggests different measures in dealing with the difficulties encountered. The authors further propose to explore input-based transfers, where the amount of ITMOs to be transferred would be determined on the basis of the support provided.
Kreibich, N., Obergassel, W.: New Paths to Policy Crediting? Challenges and Opportunities of Policy-based Cooperation under Article 6 of the Paris Agreement. JIKO Policy Paper 04/2018. Wuppertal Institute for Climate, Environment and Energy. Wuppertal – 31 p., 1 table. URL: www.carbon-mechanisms.de/en/policy_crediting
Date: October 2018
Type: Policy Paper