A stakeholder consultation workshop to discuss market mechanism under the Paris Climate Agreement was held on Sunday.
Article 6 of the Paris Climate Agreement includes a number of concepts related to market mechanisms such as cooperative approaches, internationally transferred mitigation outcomes, sustainable development mechanism and non-market approach.
There has been a renewed focus on designing efficient, effective and equitable carbon markets under the Paris Climater Agreement. These concepts have been undergoing discussion in subsequent Conference of Parties Conference of Parties (COPs).
“The focus of the consultation workshop was to discuss the features, design and safeguards of the new market mechanism that will be put in place for the post-2020 period and also assess its linkages with the pre-2020 market mechanism, particularly the Clean Development Mechanism (CDM),” according to an official statement.
India has significant experience of implementing projects under CDM of the Kyoto Protocol.
However, in view of the evolving climate realities and the changed context in the post-2020 period, wherein all countries have submitted their Nationally Determined Contributions (NDCs) or climate goals, the features of the new market mechanism are being negotiated that would help achieve the goals of the Paris Climate Agreement and support NDC implementation.
“It is expected that this will be advantageous for developing countries like India who have benefitted from CDM.
“It is important to ensure that the restrictive practices under CDM, including unilateral measures related to utilizing Certified Emission Reductions (CERs) be avoided under the new mechanisms,” the statement said.
In addition, modalities for transition of CERs and CDM methodologies were also discussed while it was also deliberated to constitute small groups to work further on the issues to enhance understanding on the issues.