1887

OECD/IEA Climate Change Expert Group Papers

This series is designed to make available to a wider readership selected papers on climate change issues that have been prepared for the OECD/IEA Climate Change Expert Group (CCXG). The CCXG (formerly called the Annex I Expert Group) is a group of government delegates from OECD and other industrialised countries. The aim of the group is to promote dialogue and enhance understanding on technical issues in the international climate change negotiations. CCXG papers are developed in consultation with experts from a wide range of developed and developing countries, including those participating in CCXG Global Forums.

The full papers are generally available only in English.

The opinions expressed in these papers are the sole responsibility of the author(s) and do not necessarily reflect the views of the OECD, the IEA or their member countries, or the endorsement of any approach described therein.

English

Operationalising the Article 6.4 mechanism

Options and implications of CDM activity transition and new activity registration

This paper identifies and analyses options for the design of the Article 6.4 mechanism in two key areas. These are the possible transition of eligible activities registered under the Kyoto Protocol’s Clean Development Mechanism (CDM) to the Article 6.4 mechanism; and the registration of new activities under the Article 6.4 mechanism. The paper outlines possible transition options and potential implications for four issues relating to host Party approval of activities and to the use, review and revision of baseline methodologies and accreditation standards. The paper also highlights the steps needed to register new or transitioned activities under the Article 6.4 mechanism, and how co-ordination between different actors can facilitate a transition. The paper concludes that there are options available to ensure that the Article 6.4 mechanism can be implemented within a few years of a formal agreement on the rules, modalities and procedures for Article 6, and can build on the significant experience gained with the CDM. The paper highlights different ways that this CDM experience can be built on, and outlines the varying administrative and environmental implications of doing so.

English

Keywords: CDM, carbon markets, Article 6, UNFCCC, Kyoto Protocol, Paris Agreement
JEL: Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy; Q49: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Other; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; F53: International Economics / International Relations, National Security, and International Political Economy / International Agreements and Observance; International Organizations; Q29: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation / Renewable Resources and Conservation: Other
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