The Paris Agreement, signed in 2015, is widely regarded as a landmark in global efforts to address climate change. Its goal is to limit global warming to well below 2 degrees Celsius above pre-industrial levels, with an aim of achieving a limit of 1.5 degrees Celsius.
One of the key components of the Paris Agreement is Article 6, which deals with market and non-market mechanisms for achieving emissions reductions. In particular, Article 6.4 establishes a mechanism for countries to cooperate in achieving their respective Nationally Determined Contributions (NDCs) through internationally transferred mitigation outcomes (ITMOs).
Within Article 6.4, there is a provision for the use of the Clean Development Mechanism (CDM), which was established under the Kyoto Protocol. The CDM enables developed countries to invest in emissions reduction projects in developing countries, and receive credits for the emissions reductions achieved.
Under the Paris Agreement, the CDM will continue to play a role in facilitating international cooperation on climate change. However, the functioning of the CDM under the Paris Agreement will differ from the original CDM under the Kyoto Protocol.
One of the key differences is that the Paris Agreement CDM will no longer be restricted to developing countries; any country can now participate. This is intended to promote greater cooperation and collaboration among all nations in their efforts to reduce emissions.
Another key change is that the Paris Agreement CDM will be subject to a new governance structure, known as the Sustainable Development Mechanism (SDM). The SDM is intended to ensure that emissions reduction projects are environmentally sound and contribute to sustainable development.
Finally, under the Paris Agreement CDM, ITMOs will be subject to robust accounting and transparency requirements. This is intended to ensure that the emissions reductions achieved through the mechanism are real, additional, and permanent.
In conclusion, the Paris Agreement Article 6 CDM is an important mechanism for international cooperation on climate change. It builds on the legacy of the original CDM under the Kyoto Protocol, while also introducing important changes to ensure that emissions reductions are environmentally sound and contribute to sustainable development. As the world continues to grapple with the challenge of climate change, the importance of the Paris Agreement CDM cannot be overstated.
