Publication: Infrastructure to Meet Reporting Requirements under Article 6
Date
2022
ISSN
Published
2022
Author(s)
World Bank
Abstract
The Kyoto Protocol has provided a
common framework for greenhouse gas (GHG) accounting through
its internationally governed market-based approaches. On the
other hand, the Paris Agreement is not calling for the
establishment of one centrally coordinated or interlinked
emissions trading architecture. The discussions at COP25 on
Article 6.2 only suggest that each participating Party shall
have, or have access to, a registry for tracking purposes.
While this market infrastructure will need to reflect the
diversity of instruments and market transactions, as well as
differences in country capacities, a certain degree of
standardization is likely to be required if the countries
intend to use international market mechanisms or cooperate
by connecting their national registries to those of other
jurisdictions. Striking the right balance between these two
purposes - that is, creating a registry that is both
nationally appropriate and internationally compatible - will
be one of the biggest challenges. That said, future
developments regarding infrastructure design in the Paris
framework will benefit greatly from already existing
infrastructure, as well as knowledge and experience that
have been gained over the years. This approach paper aims to
reach a common understanding on what market infrastructure
may be needed at the national and international level to
meet transparency and integrity requirements of Article 6,
as well as to store, track, and transact units at different
stages of a carbon asset’s life cycle. Different options
will be explored to assess how the market infrastructure at
the national and international level could be developed
under different scenarios.
Citation
“World Bank. 2022. Infrastructure to Meet Reporting Requirements under Article 6. Article 6 Approach Paper Series;. © Washington, DC. http://hdl.handle.net/10986/38333 License: CC BY 3.0 IGO.”