Paris Agreement Article 6

Practical strategies to avoid overselling

June 26, 2020

Under the Paris Agreement, states can cooperate to mitigate climate change and purchase or sell emission reductions internationally. A fundamental dif­fer­ence to the previous Kyoto Protocol mechanisms is that all countries have now pledges for climate action. Thus, if transferring countries sell too many emission re­duc­tions, they risk missing their own mitigation targets. A new study commissioned by the Swedish Energy Agency shows strategies that could be used to prevent such «overselling».


In order to achieve their mitigation targets, Parties to the Paris Agreement can cooperate with each other and purchase or sell emission reductions internationally. (Foto: Keystone-SDA)
In order to achieve their mitigation targets, Parties to the Paris Agreement can cooperate with each other and purchase or sell emission reductions internationally. (Foto: Keystone-SDA)

The Paris Agreement requires from all signatory states to contribute to mitigation – in con­trast to the Kyoto Protocol, under which only industrialized countries had concrete emission reduction targets. To achieve their targets, states can cooperate with each oth­er: Article 6 creates the basis for market mechanisms so that countries can cooperate to achieve their Nationally Determined Contributions (NDCs).

Risks for transferring countries

A major concern of prospective transferring (i.e. «selling») countries under Article 6 is the risk that par­ti­ci­pa­tion in cooperative approaches could compromise achieving their NDC, due to “overselling” emission reductions. This is not in the interest of acquiring (i.e. «buying») countries ei­ther, since the perception of risk might reduce transferring coun­tries’ willingness to trade and to commit to corresponding adjustments.

Strategies to avoid overselling

With support from the Swedish Energy Agency, an international research team from Car­bon Limits, INFRAS, SEI and Oeko Institute analyzed the risk of overselling under Ar­ti­cle 6 of the Paris Agreement. The study focuses on the risk that transferring countries sell too many emission reductions and consequently miss their own targets, as the re­main­ing reduction measures are too costly. INFRAS project manager Anik Kohli: «The re­port shows strategies on how to mitigate overselling risks and to prepare for their prac­ti­cal implentation».

Webinar from June 29th, 2020

INFRAS and its project partners presented the results of the study in a webinar. The recording of the webinar can be found here (see also slides).

Project team

Anik Kohli Senior Project Manager
Jürg Füssler Managing Partner

Project

Practical strategies to avoid overselling

Duration

2020

Topics


Services


Who we work for

Swedish Energy Agency

Downloads


Contacts

Anik Kohli Senior Project Manager