Parties to the Paris Agreement agreed to ensure avoidance of double counting of emissions reductions from the use of international market mechanisms. This paper, Institutional arrangements for reporting the use of market mechanisms under the enhanced transparency framework to avoid double counting, proposes three ways to enhance institutional arrangements for reporting, particularly reporting of market mechanisms to avoid double counting:
1. Adopting international guidance for reporting international market mechanisms to avoid double counting, under the enhanced transparency framework Modalities, Procedures and Guidelines (MPGs), and complemented with guidance for robust accounting of emissions reductions from international market mechanisms.
2. Enhancing domestic institutional arrangements by integrating arrangements for reporting of market mechanisms with the arrangements for GHG inventory preparation, broadening stakeholders’ engagement, and developing in-country capacity.
3. Identifying the challenges, needs, and possible ways to improve reporting the use of market mechanisms and communicating them in the national reports (national communications and/or Biennial Update Report).