Ever since the decision on Article 6 of the Paris agreement was taken at the COP26 summit in Glasgow, a new opportunity for investments and market expansion has unfolded in the carbon reduction projects around the world. The COP26 summit's conclusion provides the tools needed for an active, accountable and transparent carbon market, giving governments the authority to trade emissions reductions in a more flexible way. This will facilitate a more diverse way in controlling the countries' emissions on a national level.
The updated Article 6 rules give autonomy to a country hosting an emissions reduction project to determine if the reductions will be numerated as part of its own target or sold in a different place for other purposes, which should be duly notified to a UN supervisory board.
As per the Article 6.4, voluntary emissions cutback may only be used in a country's Nationally Determined Contribution if they are authorized by the UN, and the country must apply a corresponding settlement for any units sold abroad. This measure will avoid emissions reduction being counted by more than country.
Article 6 also included agreement on the Share of Proceeds which is a fixed tariff on trade of emissions that will generate funding for climate solutions in developing countries. It was agreed this will be finalized at 5% of all emissions reductions generated under Article 6.4 of the Paris Agreement.
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Technology is a useful servant, but a dangerous master, it was rightly said. Electronic devices have grown into an inevitable part of our daily lives.
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