The Paris Agreement requires from all signatory states to contribute to mitigation – in contrast to the Kyoto Protocol, under which only industrialized countries had concrete emission reduction targets. To achieve their targets, states can cooperate with each other: Article 6 of the Paris Agreement creates the basis for market mechanisms so that countries can cooperate to achieve their Nationally Determined Contributions (NDCs).
With support from the Swedish Energy Agency, an international research team from Carbon Limits, INFRAS, SEI and Oeko Institute analyzed the risk of overselling under Article 6 of the Paris Agreement. The study focuses on the risk that transferring countries sell too many emission reductions and consequently miss their own targets, as the remaining reduction measures are too costly.
Picture credit: UNFCCC flickr account