Implementing Article 6 - What is needed to ensure high-integrity emissions trading?

On Thursday 28th October at 15:00-16:45 CEST / 08:00-09:45 GMT-5 / 22:00-23:45 GMT+9, UNEP will be hosting this virtual workshop to discuss the ongoing dialogue surrounding Article 6 of the Paris Agreement in the lead up to COP26. 

                                                                                Click here to register

The event builds upon two policy briefs with carbon market experts from GET2C and Climate Experts Ltd. 

The policy briefs will be made available here prior to the event. 

Overview

With clear rules on robust accounting and transparency, emissions trading under Article 6 of the Paris Agreement can be an important driver of global climate action by mobilising climate- friendly investment and enabling the cost-effective implementation of Nationally Determined Contributions (NDCs). The remaining negotiating points on Article 6, which are to be clarified during COP26 in Glasgow, are critical to avoid the risk of “double counting” of emission reductions and to ensure environmental integrity.

As the UNFCCC NDC Synthesis Report illustrates, most countries' updated or new NDCs envisage the engagement in international emissions trading through the Article 6 market mechanisms, as these offer the potential for significant cost savings and could form a basis for more ambitious future NDCs.

To help operationalize the Paris Agreement’s market mechanisms, the NDC ACTION project, which is jointly implemented by UNEP and the UNEP-DTU Partnership, seeks to support government representatives, business leaders, financial institutions and other relevant stakeholders to improve their understanding of these mechanisms by providing an overview of key considerations related to the ongoing negotiations on Article 6. Beyond this, the project supports 10 partner countries with the implementation of their NDCs and the development of Long-Term Low Greenhouse Gas Emission Development Strategies (LT-LEDS) through tailored technical assistance for increasingly ambitious climate action.

Event Summary

Through this event, UNEP and its associated partners aim to provide key insights into the ongoing discussions and the operationalisation of Article 6 of the Paris Agreement prior to COP26, responding to two main questions:

• What are the key lessons learnt from emissions trading under the Kyoto Protocol that should be considered for the operationalisation of the Paris Agreement’s market mechanisms?

• How can countries ensure robust accounting and environmental integrity in the application of Article 6?