Although Article 6.7 stipulates that the annual COP adopts rules, modalities and procedures for the carbon market in accordance with Article 6.4, there is disagreement over the extent of national control over its activities and the UN supervisory body signs each draft or methodology. Therefore, there is disagreement as to whether – and if so, how – the many methods to stem the Kyoto era, projects and emission credits should be included in the Article 6.4 market. This reduction means that emissions and red lines can be exchanged for each other, while negotiators seek to reach agreement on the article 6 regulatory framework. There may also be attempts to link these discussions to other COP political priorities, further complicating matters. One of the keys to this strengthened ambition lies in the implementation of Article 6 of the Paris Agreement. At COP24 in Katowice, Poland, last December, the participating countries reached an agreement on the implementation of the Paris Agreement – the so-called Paris regulation – but failed to agree on the implementation of Article 6. That is why Article 6 of the Paris Agreement was at the centre of the United Nations climate change conference in Bonn, which marked the first formal meeting of governments to advance negotiations on the absence of Paris rules. If there is no agreement by the end of COP25, the issue will be transferred to COP26 in Glasgow in December 2020, so that the UK will advance diplomatic progress to get it through. The three separate mechanisms – in accordance with Articles 6.2, 6.4 and 6.8 – were all part of the Paris Agreement, in recognition of the competing interests and priorities between the contracting parties to the agreement. These differences remain and need to be reviewed if the section 6 regulatory framework is to be adopted. At the international climate summit in Madrid in December 2019, climate negotiators will once again attempt to finalize the Article 6 “regulatory framework” that will govern voluntary international cooperation on climate change issues, including carbon markets. In order to truly understand the task entrusted to them and the main areas of disagreement that remain, the first point of contact is the text of Article 6 of the Paris Agreement itself, presented in annotated form in the graph below. The precise approach to avoiding the use of emissions reductions by more than one country is one area of significant divergence.
It is closely linked to the idea of double counting within the meaning of Article 6.2, with both questions being asked about what is considered “internal” and “outside” the scope of a country`s PNNMs, with some commitments covering only part of the economy.