COP26: Article 6 Outcomes
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Article 6 Outcomes on Market/Non-market
Approaches
Article 6 is PA’s ‘cooperative approaches’
among Parties involving the use of market and non-market mechanisms of their
Nationally Determined Contributions (NDC)’s implementation
Establishment of the ‘Glasgow Committee on
Non-market Approaches’ – a win for DCs
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This formal institutional
mechanism can advance the non-market approaches (NMAs), which was initially
resisted by developed countries
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Considered a victory under the
Paris Agreement’s Article 6.8
No Decision for a Mandatory Contribution –
a loss for DCs
-
The market-based approach under
PA’s Article 6.2 is a loss to the developing countries as there was no decision
reached for a mandatory contribution to the Adaptation Fund (AF) for
‘international transfer of mitigation outcomes’ (ITMOs).
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The final decision adopted only
“strongly encourages” Parties and stakeholders to contribute to the AF, a decision
strongly supported by the US.
Article 6(2) Decision – What Are ITMOs?
The definition of ITMOs and whether the
mitigation outcomes can be measured in other metrics aside from the current
metric tCO2eq. Developed countries (excluding Japan) and the Alliance of Small
Island States (AOSIS) stuck to the current while developing countries (LMDC, Arab
Group, India, South Korea) prefers other metrics reflecting all NDC types
The guidance adopted under this article
covers all types of NDCs, all metrics to be used in achieving the NCDs, and for
other international mitigation purposes
Corresponding Adjustments
The Subsidiary Body for Scientific and
Technological Advice (SBSTA, in Paris 2015) was tasked to develop the guidance
for Article 6.2 on “guidance to ensure that double counting is avoided…”. It
means that when a Party transfers its mitigation outcome to be counted towards
another Party’s mitigation contribution… this action requires a corresponding
adjustment to be made when accounting for their emissions reductions.
The adopted guidance provides that all
ITMOs and Party should be applied to corresponding adjustments consistently
with the guidance and other future CMA decisions.
The guidance also states that each
participating Party shall ensure transparency, accuracy, completeness,
comparability… when applying corresponding adjustments.
Article 6(4) Decision
The decision adopted the rules for the
mechanism, designated a “Supervisory Body” for the mechanism, and invited nominations
for the Body’s members to advance its work.
“Article 6.4 emission reduction” (A6.4ER)
was issued for mitigation under Article 6… and is measured in carbon dioxide
equivalent… calculated following the methodologies assessed by the IPCC and
adopted by the CMA…
Share of proceeds
The decision provides for a levy of share
of proceeds for the AF and to cover administrative expenses. The administrative
expenses shall be set in a manner to be determined by the CMA.
The transition of CDM Activities and Use
of Certified Emission Reductions Towards First NDCs
The Article 6.4 mechanism provides the
transition of the CDM projects and the Certified Emissions Reduction Units (CERs)
under the Kyoto Protocol (KP). The rules for the mechanism states that project
activities and programmes of activities under the CDM may transition to the
mechanism and be registered as A6.4 activities subject to conditions.
For the rules on the use of CERs, the
article states that “CERs issued under the CDM may be used towards achievement
of an NDC” that should meet conditions
Article 6(8) Decision
For this article on non-market approaches
(NMAs), the main issue is implementation. Accordingly, the CMA adopted the work
programme on NMA, which also provides, among other things, that each NMA under
the framework “(e) Is conducted in a manner that respects, promotes and
considers respective obligations of Parties on human rights, the right to
health, the rights of indigenous people, local communities, migrants, children,
persons with disabilities and people in vulnerable situations and the right to
development, as well as gender equality, empowerment of women and
intergenerational equality.”
The CMA decided initial focus areas on the
work programme activities, including adaptation, resilience, and
sustainability; mitigation measures; and clean energy sources development.
The CMA also requested the Glasgow
Non-Market Approaches committee to develop and recommend work programme
activities implementation schedule, including timeline and expected results per
activity.
Developing countries (esp. LMDC) asked for
a dedicated institution to implement the work programme instead of the SBSTA as
the Body has much work to do.
Article Credit and Source: www.twn.my
Prepared by: Abraham Sumalinog
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