The Paris Agreement includes Article 6 with several provisions, which allow for the use of the international carbon market. On behalf of the German Federal Environment Agency (UBA), adelphi together with Oeko-Institut and NewClimate Institute analyses and interprets the dynamic developments in the field of global carbon markets and provides input on formulating and further developing the German position for UNFCCC negotiations as well as in other carbon market initiatives.
"International market mechanisms after Paris" considers Cooperative Approaches (CA, Art. 6.2-3) and the Mechanism for Sustainable Development and Mitigation (MSDM, Art. 6.4-7) as the new market mechanisms, which constitute the basis of the international carbon market under the United Nations Framework Convention on Climate Change (UNFCCC).
The purpose of the paper is to identify the main goals and aims of the international carbon market, take into account the general context and environment for carbon markets under the Paris Agreement, identify and discuss the main issues of the relevant paragraphs and analyse issues of the interaction and relationship of the provisions including synergies and conflicts.