dc.contributor.author	World Bank
dc.date.accessioned	2021-04-07T15:46:24Z
dc.date.available	2021-04-07T15:46:24Z
dc.date.issued	2021-04-06
dc.description.abstract	Unlike the Kyoto protocol’s clean development mechanism (CDM), Article 6.2 of the Paris Agreement is designed to allow for international cooperation in carbon markets through decentralized governance. Under this article, bilateral or plurilateral cooperation between participating parties can be established through a mutually agreed policy and governance framework and reflected in the agreement between the parties involved. This decentralized architecture requires considerably higher levels of engagement and oversight from participating parties. The context for setting institutions and approval procedures at the domestic level is fundamentally rooted in the country’s national climate strategy and their nationally determined contribution (NDC). A host country will need to establish a detailed Article 6 strategy that guides, but is not limited to, how its participation in Article 6 will help the country achieve its target. This paper forms the starting point, focusing on the institutional requirements to establish the policy and regulatory process that defines and supports the implementation of the potential activity cycle for Article 6.2 activities and transactions; identifies functions required at the national level from the host country’s perspective; and discusses different options to allocate these functions to existing or new institutions. The Article 6.2 activity cycle can build on project cycles under the Kyoto protocol, with an added requirement for the authorization and transfer of mitigation outcomes (MOs). While the entire process can be developed domestically, host countries can also choose to use international crediting programs to register projects and issue units. However, the host country will still be responsible for the Article 6.2 process of authorizing and transferring ITMOs, as well as applying corresponding adjustments. The type of arrangement that a country chooses to adopt affects the type of institutional arrangement and functions of the different bodies involved.	en
dc.identifier	http://documents.worldbank.org/curated/en/769021617687870613/Country-Processes-and-Institutional-Arrangements-for-Article-6-Transactions
dc.identifier.doi	10.1596/35392
dc.identifier.uri	https://hdl.handle.net/10986/35392
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Article 6 Approach Paper Series; No. 2
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGE
dc.subject	CLIMATE CHANGE MITIGATION
dc.subject	EMISSION REDUCTION
dc.subject	GREENHOUSE GAS EMISSIONS
dc.subject	CARBON TAX
dc.subject	CARBON MARKET
dc.title	Country Processes and Institutional Arrangements for Article 6 Transactions	en
dc.type	Working Paper	en
dc.type	Document de travail	fr
dc.type	Documento de trabajo	es
dspace.entity.type	Publication
okr.crossref.title	Country Processes and Institutional Arrangements for Article 6 Transactions
okr.date.disclosure	2021-04-06
okr.date.doiregistration	2025-05-05T12:30:58.785964Z
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/769021617687870613/Country-Processes-and-Institutional-Arrangements-for-Article-6-Transactions
okr.guid	769021617687870613
okr.identifier.externaldocumentum	090224b088480f8f_1_0
okr.identifier.internaldocumentum	32973232
okr.identifier.report	157947
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/769021617687870613/pdf/Country-Processes-and-Institutional-Arrangements-for-Article-6-Transactions.pdf	en
okr.topic	Environment::Carbon Policy and Trading
okr.topic	Environment::Climate Change Mitigation and Green House Gases
okr.topic	Environment::Environmental Economics & Policies
okr.unit	Climate Change Carbon Markets (SCCMI)

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Country Processes and Institutional Arrangements for Article 6 Transactions