Designing the Article 6.4 mechanism: Assessing selected baseline approaches and their implications

Luca Lo Re, Jane Ellis, Manasvini Vaidyula and Andrew Prag
Additional contact information
Luca Lo Re: International Energy Agency
Jane Ellis: OECD
Manasvini Vaidyula: OECD
Andrew Prag: International Energy Agency

No 2019/05, OECD/IEA Climate Change Expert Group Papers from OECD Publishing

Abstract: Different options of methodological approaches for setting emission baselines are currently under consideration in the international climate negotiations. This paper examines options for baseline approaches for the Article 6.4 mechanism, and draws lessons from how baselines have been used for other market mechanisms. The paper highlights that the different approaches being discussed offer advantages and disadvantages in the context of Article 6.4. Moreover, the paper points out that a one size- fits-all approach to setting baselines is unlikely to be appropriate for the new mechanism, given the variety of possible mitigation activity types and contexts. In particular, analysis of Clean Development Mechanism projects shows that a single baseline approach led to wide variations in baseline levels, implying the need to revise some methodologies if they are to be applied to Article 6.4. The paper also discusses benefits and implications for host Parties participating in the Article 6.4 mechanism, which may affect how Parties achieve their NDCs.

Keywords: Article 6; baselines; carbon markets; CDM; Kyoto Protocol; Paris Agreement; UNFCCC (search for similar items in EconPapers)
JEL-codes: F53 Q54 Q56 Q58 (search for similar items in EconPapers)
Date: 2019-11-29
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:envaab:2019/05-en

Access Statistics for this paper

More papers in OECD/IEA Climate Change Expert Group Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().