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Benchmarks to determine baselines for mitigation action under the Article 6.4 mechanism

Baseline setting with globally applicable and stringent benchmarks may be an important instrument for scaling-up market mechanisms under Article 6. Defining baselines based on BAU and NDC targets is challenging as targets are uncertain, sometimes unclear or have only a limited scope. Benchmarks promise to be an efficient and simple solution. This builds on the rationale that stringent benchmarks lead to baselines that are automatically below both BAU and to an emission trajectory that is compliant with the host-country’s NDC target. This analysis indicates that even though there are sub-sectors with medium or large potential for benchmarking (e. g. industry process emissions), most emission sources cannot be covered by global benchmarks.


Date: June 2019
Type: Study