8.1 Introduction
Article 6.1 of the Paris Agreement recognizes that some Parties choose to pursue voluntary cooperation in the implementation of their NDCs. Voluntary cooperation allows for higher ambition mitigation and adaptation actions while promoting sustainable development and environmental integrity. Article 6 offers both acquiring and host parties mechanisms to strengthen their NDC implementation through sharing of mitigation benefits resulting from Article 6 cooperation, while promoting cost-effective implementation and delivering sustainable co-benefits.
8.1.1 Intention to use Article 6 in enhancing NDC ambition
The NDCs of approximately 78% of 168 Parties expressed an intent to engage in at least one type of voluntary cooperation under Article 6 of the Paris Agreement. Among the cooperation options, Article 6, paragraph 2, was the most frequently mentioned at 52%, followed by the mechanism established in Article 6, paragraph 4 at 34%, and general voluntary cooperation at 25%. The findings indicate that Parties recognize the potential benefits of international partnerships in meeting their NDC targets and enhancing global climate change mitigation and adaptation.
8.1.2 Article 6 in the context of NDC mitigation ambition
Article 6 can help increase the ambition of Nationally Determined Contributions (NDCs) by driving mitigation efforts and supporting the achievement of unconditional and conditional targets. It promotes alignment with long-term goals, ensuring consistency with a low GHG emissions pathway and the Paris Agreement’s temperature targets. Furthermore, it accelerates climate action, enabling countries to reach net-zero emissions earlier.
The potential role of Article 6 in raising ambition is conditional upon Parties making strategic decisions that prioritize long-term, impactful mitigation actions. Robust accounting systems must be applied to prevent issues such as double counting of emission reductions. By ensuring that credits or reductions are accounted for properly, Parties can maximize the benefits of Article 6, leading to more ambitious climate action and a stronger alignment with international climate goals.
8.1.3 Expanding NDC Coverage Across Gases, Sectors, and Technologies to Boost Ambition
Article 6 of the Paris Agreement is instrumental in bridging the gaps toward achieving NDC ambition through its comprehensive framework, which covers all sectors, including all GHGs, as well as mobilizing finance, facilitating technology transfer, and addressing policy barriers. Article 6 enables flexibility and can be applicable across all sectors of the economy, creating opportunities for broad-based emission reductions. For example, a Party with limited domestic options to reduce emissions in a hard-to-abate sectors such as heavy industry may engage in cooperation under Article 6 to support renewable energy projects in other Parties. The comprehensive coverage enables Parties to reduce a range of GHG emissions including gases that are more potent or harder to control and closing the gap in NDCs that include non-CO2 gases.
Generation and trade of carbon credits through Article 6 can attract investments in mitigation projects from both the public and private sectors. Parties may use revenue generated from carbon transactions under Article 6.4 or bilateral cooperation under Article 6.2 to fund projects that would otherwise be economically unviable. This flow of finance facilitates implementation of more ambitious projects and NDC targets. Through cooperative approaches, Parties can gain access to cutting-edge technologies for renewable energy, carbon capture, energy efficiency, and other mitigation solutions. Technology transfer plays a pivotal role in enabling Parties to meet more ambitious NDCs. Article 6 offers a platform for parties to collaborate, aligning policies, creating consistent carbon pricing, and harmonizing regulatory frameworks Parties are able to overcome market-based barriers by developing consistent accounting rules for carbon credits or by establishing sector-specific policies to encourage private sector investment in low-carbon technologies.
8.2 Parties should strengthen communication in their NDCs regarding how Article 6 can enhance ambition
Parties can effectively leverage Article 6 to achieve their NDC ambitions by embedding cooperative mechanisms within the NDC implementation strategy and identifying cost-effective mitigation options through international cooperation. Parties’ NDCs can communicate their intention to use Article 6 to achieve their climate targets and support sustainable development objectives. By transferring ITMOs or engaging in other cooperative approaches, Parties can access necessary financial resources to enable additional climate action and allow for enhancement of NDC. Additionally, cooperative approaches allow access to a broader range of innovative technologies and renewable energy solutions.
Article 6 offers a platform to collaborate among nations, promoting the exchange of know-how, technology, and expertise. This support encourages Parties to establish institutional and regulatory frameworks required for effective climate action while delivering sustainable co-benefits such as fostering skill development within local workforces. Furthermore, developing Parties are able to utilize technical and financial assistance to improve their infrastructure for monitoring, reporting, and verification (MRV) of emissions reductions, thereby enhancing transparency and accountability.
By communicating their commitment to sustainable development by integrating social, economic, and environmental co-benefits into their Article 6 strategies, Parties ensure that the implementation of market mechanisms not only contributes to emission reductions but also supports job creation, poverty alleviation, and community resilience.
Parties should ensure environmental integrity and transparency in using Article 6 mechanisms. By adopting rigorous accounting rules and methodologies, Parties can ensure that emissions reductions are tangible, additional, and verifiable, which is critical for maintaining the integrity of international climate goals. Parties should ensure the alignment of Article 6 implementation with their NDCs and long-term strategies and take necessary steps to avoid double counting, as well as ensuring transparency through timely and robust reporting. Clear and transparent communication about these mechanisms allows Parties to demonstrate their accountability to the global community and strengthens the collective effort to meet the objectives of the Paris Agreement.
Article 6 offers a platform to collaborate among nations, promoting the exchange of know-how, technology, and expertise. This support encourages Parties to establish institutional and regulatory frameworks required for effective climate action while delivering sustainable co-benefits such as fostering skill development within local workforces. Furthermore, developing Parties are able to utilize technical and financial assistance to improve their infrastructure for monitoring, reporting, and verification (MRV) of emissions reductions, thereby enhancing transparency and accountability.
By communicating their commitment to sustainable development by integrating social, economic, and environmental co-benefits into their Article 6 strategies, Parties ensure that the implementation of market mechanisms not only contributes to emission reductions but also supports job creation, poverty alleviation, and community resilience.
Parties should ensure environmental integrity and transparency in using Article 6 mechanisms. By adopting rigorous accounting rules and methodologies, Parties can ensure that emissions reductions are tangible, additional, and verifiable, which is critical for maintaining the integrity of international climate goals. Parties should ensure the alignment of Article 6 implementation with their NDCs and long-term strategies and take necessary steps to avoid double counting, as well as ensuring transparency through timely and robust reporting. Clear and transparent communication about these mechanisms allows Parties to demonstrate their accountability to the global community and strengthens the collective effort to meet the objectives of the Paris Agreement.
