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

The birth of an ITMO: Authorisation under Article 6 of the Paris Agreement

“Authorisation” is a new but as yet undefined component of the guidance for implementation of Article 6 of the Paris Agreement. Authorisation is important as it triggers both corresponding adjustments and reporting requirements. This paper identifies and analyses open questions related to what is authorised, by what process, for what purpose, the format and timing of authorisation, and how any ex-post changes to authorisation can be made. The answers to these questions can affect the attractiveness for Parties and the private sector to participate in Article 6 cooperation. The paper also outlines areas of Article 6.2 guidance that could be usefully clarified at the international level, and implications of different options for the domestic implementation of Article 6 authorisation provisions, drawing from examples of a few frontrunner Parties who have already established bilateral agreements and domestic structures for international cooperation under Article 6. The paper concludes that some of the open questions could be clarified at the international level, such as how to report any changes to authorisations and if the authorisation needs to be provided concurrently by the participating Parties. Other questions could be clarified at the national level by the participating Parties providing the authorisation. These include whether participating Parties can choose to include additional elements in their authorisations, and which roles authorised entities could play.

English

Keywords: Kyoto Protocol, Article 6, UNFCCC, Paris Agreement, Carbon markets
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; Q49: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Energy / Energy: Other; F53: International Economics / International Relations, National Security, and International Political Economy / International Agreements and Observance; International Organizations; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; Q29: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Renewable Resources and Conservation / Renewable Resources and Conservation: Other; Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy
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