"CMIA helped to explain the potential for project-based mechanisms across a variety of constituencies and is a key voice driving the conversation on results-based finance and sector approaches for scaling-up emission reduction investments. We urgently need input from organisations like CMIA to operationalise Art 6 of the Paris Agreement."

Mr. Franz-Josef Schafhausen, former Director General Climate Change, European and International Affairs, Federal German Ministry of the Environment, Nature Conservation, Building and Nuclear Safety

Market Mechanisms in the Paris Agreement

27th March 2017 by CMIA

Market Mechanisms in the Paris Agreement – Differences and Commonalities with Kyoto Mechanisms. This paper by SEI examines how the approaches to market mechanisms in Article 6 of the Paris Agreement compare with the approaches taken in the Kyoto Protocol.

Article 6 of the Paris Agreement introduces provisions for using international market mechanisms to fulfil nationally determined contributions. In developing national and international rules governing these approaches it is important to draw on the lessons learnt from the existing flexibility mechanisms under the Kyoto Protocol and to understand how they compare and differ from the approaches under the Paris Agreement.

This discussion paper analyses Article 6 of the Paris Agreement, discusses how these approaches compare and contrast with the flexibility mechanisms of the Kyoto Protocol, and highlights important lessons learned from the Kyoto mechanisms for operationalizing Article 6 of the Paris Agreement.

Finally, the paper outlines key areas for discussion and decision-making in the development of international rules for Article 6.

Download the paper by the Stockholm Environment Institute here.