
17.03.2025
What legislative development of Article 6 of the Paris Agreement is still pending?

Article 6 of the Paris Agreement has become a key point in the fight against climate change. As we have published in the post: Why is Article 6 of the Paris Agreement so relevant?.
Below we present the collaboration in video format as well, in case you are interested in viewing it:
The best demonstration of its importance lies in the ten issues that are still pending development, which we enumerate below:
- Detailed rules for Article 6.2 (cooperative approaches): There is still a need to fully define how the transfers of emission reductions between countries will be accounted for and reported. Additionally, robust monitoring and verification systems need to be established.
- Implementation of Article 6.4 (sustainable development mechanism): Detailed operating rules for this new mechanism, which replaces the Clean Development Mechanism of the Kyoto Protocol, need to be developed. Furthermore, it remains to be defined how the additionality of projects will be ensured and how double counting will be avoided.
- Treatment of Kyoto Protocol credits: There is still debate over whether and how credits generated under the Kyoto Protocol will be transitioned to the new system under the Paris Agreement.
- Percentage of revenues for adaptation: Agreement is still needed on what percentage of the revenues generated by the Article 6.4 mechanism will be allocated to an adaptation fund for vulnerable countries.
- Environmental and social safeguards: Robust safeguards need to be defined and agreed upon to ensure that projects under Article 6 do not cause environmental or social harm.
- Baseline methodologies: Agreement is needed on how baselines for projects will be established, especially in the context of the Sustainable Development Goals.
- Governance of the mechanism: A detailed governance structure needs to be established to oversee and manage the Article 6 mechanisms.
- Integration with national and regional markets: It remains to be defined how the Article 6 mechanisms will be integrated with existing emissions trading systems, such as the EU ETS.
- Treatment of emission reductions outside NDCs: There is debate on how to handle emission reductions in sectors not covered by a country’s Nationally Determined Contributions (NDCs).
- Periodicity of reviews: Agreement is needed on how frequently the rules of Article 6 will be reviewed and updated to ensure their effectiveness and alignment with the latest climate science.
These pending aspects are crucial for the effective implementation of Article 6 and, by extension, for the global success of the Paris Agreement. Negotiations around these points are complex due to the different interests and circumstances of the countries, but they are essential to establish a robust and effective international cooperation system in the fight against climate change.
If you liked this article, you might also find the following reading interesting:
Article 6 of the Paris Agreement: A Legal Analysis for Businesses and Individuals
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