Navigating the Paris Rulebook
Cooperative Implementation (Article 6) Deeper Dive
5.1. Technical Details
Parties have not yet been able to reach agreement on the negotiations related to cooperative implementation under Article 6. Further details will be added following the adoption of the guidance for Article 6.2; rules, modalities, and procedures for Article 6.4; and work program for Article 6.8.
In 2019, WRI published a paper on “Making Sense of Article 6: Key Issues and What’s at Stake” which outlined seven key remaining issues, including:
- Avoiding double counting on the basis of corresponding adjustments
- How to make a corresponding adjustment for non-GHG mitigation outcomes
- How to make a corresponding adjustment for single- and multi-year targets
- How to account for mitigation outcomes generated in sectors and greenhouse gases (GHGs) not covered by the NDC
- How to account for use of Article 6 and non-UNFCCC compliance schemes (e.g., the Carbon Offsetting and Reduction Scheme for International Aviation, CORSIA)
- How to avoid double use of emissions reductions from the Article 6.4 mechanism that are internationally transferred
- Baselines and additionality in Article 6.4
- Transition of methodologies, activities, and units from the Kyoto Protocol’s mechanisms
- Share of proceeds
- Overall mitigation in global emissions
- Governance of Article 6
- Reporting under Article 6 and link with reporting under Article 13’s enhanced transparency framework
Read the full paper for more on these issues, specifically for a description of each issue, what Parties disagree on, and what’s at stake (Levin et al. 2019).
5.2. Linkages with Other Elements of the Paris Agreement
Various elements of the Paris Agreement Rulebook are linked together, both implicitly and explicitly. These linkages build the Agreement’s plan-implement-review cycle and will support the implementation of the Agreement. This discussion details some of the linkages with cooperative implementation (Article 6), building on the efforts first elaborated in Dagnet et al. (2017) and Dagnet et al. (2018), and including updated information from the final decisions reached by the CMA.
Common Time Frames. Even though the negotiations are ongoing for both common time frames and Article 6, the decision on common time frames will be linked to efforts under Article 6. The decision on common time frames is likely to define the period for implementation of NDCs during which Parties may be trading mitigation outcomes. As Parties grapple with the accounting rules and procedures for trading mitigation outcomes, defining NDC periods for implementation becomes extremely important.
NDC Mitigation Elements. The specific link may be further clarified when Parties agree on the guidelines and procedures for Article 6. The accounting guidance adopted in decision 4/CMA.1 will inform Party efforts in accounting for greenhouse gas emissions and removals. However, the use of cooperative implementation under Article 6 may affect the scope of NDCs. More than 51% of 2015 NDCs signaled their intention to use cooperative approaches (Levin et al. 2019).
Enhanced Transparency Framework. While negotiations around Article 6 are still ongoing, linkages with the enhanced transparency framework have been established. Paragraph 77d of decision 18/CMA.1 outlines a number of additional reporting requirements for those Parties participating in cooperative approaches (though the details of the structured summary are still under negotiation and the information described in paragraph 77d is without prejudice to the outcomes of negotiations under Article 6). Further linkages are likely to be defined as Parties finalize negotiations on Article 6, including linkages between the governance and expert review of Article 6.2 and the Article 13 technical expert review.
Global Stocktake. Information on efforts under Article 6 will support the global stocktake’s consideration of the “state of greenhouse gas emissions” and the “overall effect of Parties’ [NDCs] and overall progress made by Parties towards the implementation of the [NDCs]” (19/CMA.1, para. 36b).