COP26: Article 6 Outcomes

This article is a brief version of the article published by twn.org on the results of negotiations among Parties on issues related to the contentious Article 6 of the Paris Agreement (2015)

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

- This formal institutional mechanism can advance the non-market approaches (NMAs), which was initially resisted by developed countries

- 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).

- 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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