The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
This paper explored a scenario that assumes that cost savings from international carbon trading were reinvested back into enhanced ambition. Further quantitative explorations regarding the implications of this assumption and potential mechanisms to encourage that outcome could be useful extensions.
This technical paper investigates the potential economic and environmental outcomesassociated with the use of Article 6 of the Paris Agreement by participating countries.The extent to which countries use Article 6, and how they use it, will be informed by design choices agreed upon by negotiators in forthcoming Conference of the Parties (COP) meetings, particularly the next one to be held at COP 25 in Chile and by the agreements made between participating parties.
