BLOG SURF: Carbon market
The Carbon Expo held on the banks of the Rhine at the Messe Köln last month in Germany echoed optimism for the resurgence of carbon market mechanisms after the Paris Agreement was adopted at the COP21 in Paris last year.
The Paris Agreement signifies hope at the domestic, regional, and international levels. Enshrined in Article 6, the agreement establishes both a cooperative approach to facilitate international transfer of mitigation outcomes between countries on a voluntary basis, and a centralized international market mechanism.
Article 6 therefore lays the groundwork for carbon market mechanisms such as emission trading systems (ETS) as an effective instrument to achieve emission reductions in a cost-effective manner, and to potentially raise countries’ ambitions beyond existing domestic emissions reduction targets.
By now more than 185 countries have submitted their Intended Nationally Determined Contributions.