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Market Mechanisms in the Paris Agreement – Differences and Commonalities with Kyoto Mechanisms

Discussion paper published by the German Emissions Trading Authority (DEHSt) at the German Environment Agency

Author(s): Schneider, L. ; Broekhoff, D.
Year: 2016

This paper examines how the approaches to market mechanisms in Article 6 of the Paris Agreement compare with the approaches taken in the Kyoto Protocol.

Article 6 of the Paris Agreement introduces provisions for using international market mechanisms to fulfil nationally determined contributions. In developing national and international rules governing these approaches it is important to draw on the lessons learnt from the existing flexibility mechanisms under the Kyoto Protocol and to understand how they compare and differ from the approaches under the Paris Agreement.

This discussion paper analyses Article 6 of the Paris Agreement, discusses how these approaches compare and contrast with the flexibility mechanisms of the Kyoto Protocol, and highlights important lessons learned from the Kyoto mechanisms for operationalizing Article 6 of the Paris Agreement.

Finally, the paper outlines key areas for discussion and decision-making in the development of international rules for Article 6.

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