Article 6 Implementation: Emerging Trends for Countries’ National Strategies
While the UNFCCC negotiations on Article 6 set up a framework for international cooperation on carbon markets, many decisions around implementation are left to national governments. These include choices like what will be traded, how to operationalize trades, and who will oversee the market. Despite some remaining gaps in the Article 6 text, both seller and buyer countries are moving ahead and are enacting policies, setting bilateral agreements and making moves that will likely shape the future of market mechanisms under the Paris Agreement.
This paper explores the tools and trends employed by countries that are in the process of establishing their Article 6 strategies. We use the examples of 8 seller countries – The Bahamas, Ghana, Indonesia, Kenya, Paraguay, Rwanda, Tanzania, and Zambia – as well as insights from buyer countries including Switzerland, Singapore, Sweden and Norway.
The Article 6 Implementation report is also designed to be used with its companion report, the Article 6 Explainer, which offers straightforward guidance on what was decided at the UNFCCC COPs and dives into the complex implications of Article 6 for NDCs, nature and the VCM.