The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
This technical paper investigates the potential economic and environmental outcomesassociated with the use of Article 6 of the Paris Agreement by participating countries.The extent to which countries use Article 6, and how they use it, will be info...
| Main Authors: | , , , , |
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| Language: | English |
| Published: |
International Emissions Trading Association, University of Maryland, and Carbon Pricing Leadership Coalition, Washington, D.C.
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/215681585753172514/The-Economic-Potential-of-Article-6-of-the-Paris-Agreement-and-Implementation-Challenges http://hdl.handle.net/10986/33523 |
| Summary: | This technical paper investigates the
potential economic and environmental outcomesassociated with
the use of Article 6 of the Paris Agreement by participating
countries.The extent to which countries use Article 6, and
how they use it, will be informed by design choices agreed
upon by negotiators in forthcoming Conference of the Parties
(COP) meetings, particularly the next one to be held at COP
25 in Chile and by the agreements made between participating
parties. We use the Global Change Assessment Model (GCAM),
an integrated assessment model, to quantify the economic
potential of Article 6. We go on to discuss real world
considerations and potential implications of design choices
currently under consideration by negotiators. We find that
Article 6 has the potential to reduce the total cost of
implementing nationally determined contributions (NDCs) by
more than half (~250 billion dollars/year in 2030), or
alternatively facilitate the removal of 50 percent more
emissions (~5 gigatonnes ofcarbon dioxide per year
[GtCO2/year] in 2030), at no additional cost. We note,
however, that careful framing in both the design and
implementation of Article 6 is essential. A poorly designed
and implemented framework could frustrate the achievement of
Paris goals, whilea well-designed and implemented framework
could further them. We conclude by identifying gaps in the
research that would be useful to address before COP 25 in Chile. |
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