Article 6 of the Paris Agreement is crucial in the global fight against climate change. It recognizes that some countries may choose to pursue voluntary cooperation in the implementation of their nationally determined contributions (NDCs) to allow for higher ambition and to promote sustainable development. Critically, Article 6 provides a framework for international cooperation in addressing climate change that encourages private sector investment in climate actions.
This insight brief explains some of the challenges related to the implementation of Article 6 cooperative approaches. Cooperative approaches involve countries collaborating by trading internationally transferred mitigation outcomes (ITMOs) to support achievement of their NDCs.
The Article 6 rulebook provides only a broad outline of appropriate cooperative approaches, and countries have considerable flexibility when developing the governance frameworks required to implement Article 6. The brief explores five areas that require host countries to make decisions, using examples from countries that have moved early in articulating their Article 6 approaches.