Region: Global
Country: Global / Non-Specific
Sector: Energy and Power
Keywords: PPPs by Topic *, Emission Reduction Program **
Document Link(s):
Document(s):
Document Summary:
This note introduces the country processes and institutional arrangements that will be needed for Article 6 transactions, and that countries could begin to pilot now. This includes what new legal, institutional, and regulatory arrangements may be required, particularly by countries that host mitigation activities. While the note covers both Article 6.2 and Article 6.4 cooperation, the focus is on Article 6.2 because of the stronger role that participating countries will likely play. By outlining the key functions or decisions and the various options for meeting these requirements, this note is intended to serve as a basis for further country-level consideration—as an aid to piloting rather than a comprehensive treatment of the subject.
Document Details:
Unlike the Kyoto protocol’s clean development mechanism (CDM), Article 6.2 of the Paris Agreement is designed to allow for international cooperation in carbon markets through decentralized governance. Under this article, bilateral or plurilateral cooperation between participating parties can be established through a mutually agreed policy and governance framework and reflected in the agreement between the parties involved. This decentralized architecture requires considerably higher levels of engagement and oversight from participating parties. The context for setting institutions and approval procedures at the domestic level is fundamentally rooted in the country’s national climate strategy and their nationally determined contribution (NDC). A host country will need to establish a detailed Article 6 strategy that guides, but is not limited to, how its participation in Article 6 will help the country achieve its target. This paper forms the starting point, focusing on the institutional requirements to establish the policy and regulatory process that defines and supports the implementation of the potential activity cycle for Article 6.2 activities and transactions; identifies functions required at the national level from the host country’s perspective; and discusses different options to allocate these functions to existing or new institutions. The Article 6.2 activity cycle can build on project cycles under the Kyoto protocol, with an added requirement for the authorization and transfer of mitigation outcomes (MOs). While the entire process can be developed domestically, host countries can also choose to use international crediting programs to register projects and issue units. However, the host country will still be responsible for the Article 6.2 process of authorizing and transferring ITMOs, as well as applying corresponding adjustments. The type of arrangement that a country chooses to adopt affects the type of institutional arrangement and functions of the different bodies involved.
Updated:
Related Content
Unlocking Global Emission Reduction Credit
Page Specific DisclaimerThis section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.
Featured Section LinksBanner Notice
Watch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, or Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Introduction to Emission Reduction Credits
Page Specific DisclaimerThis section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.
Banner Notice
Watch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, or Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Strategic Guidance for Country System Assessments
Page Specific DisclaimerThis section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.
Table of contents TitleTable of ContentsTable of contents link/Emission_Reduction_Program/Strategic_Guidance_Country_System_Assessments/Table_of_ContentsBanner Notice
Watch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, or Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Guidance for Countries in Assessing ERC Projects
Page Specific DisclaimerThis section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.
Table of contents TitleTable of ContentsTable of contents link/Emission_Reduction_Program/Guidance_for_Countries_in_Assessing_ERC_Projects/Table_of_ContentsBanner Notice
Watch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below or download the following reports: Strategic Guidance for Country System Assessments and Guidance for Countries in Assessing ERC Projects, or the Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.
Mobilizing ERC Finance
Page Specific DisclaimerThis section is intended to be a living document and will be reviewed at regular intervals. The Guidelines have not been prepared with any specific transaction in mind and are meant to serve only as general guidance. It is therefore critical that the Guidelines be reviewed and adapted for specific transactions. Unless expressly stated otherwise, the findings, interpretations, and conclusions expressed in the Materials in this Site are those of the various authors of the Materials and are not necessarily those of The World Bank Group, its member institutions, or their respective Boards of Executive Directors or member countries. For feedback on the content of this section of the website or suggestions for links or materials that could be included, please contact the Public-Private Partnership Resource Center at ppp@worldbank.org.
Table of contents TitleTable of ContentsTable of contents link/Emission_Reduction_Program/ContentsBanner Notice
Watch this space. Unlocking Global Emission Reduction Credit is intended to be a living document and will be reviewed at regular intervals. Check the page below, or visit Strategic Guidance for Country System Assessments, Guidance for Countries in Assessing ERC Projects, or Mobilizing ERC Finance. Let us know what you think by taking a Quick Survey.