The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges

This technical paper investigates the potential economic and environmental outcomesassociated with the use of Article 6 of the Paris Agreement by participating countries.The extent to which countries use Article 6, and how they use it, will be info...

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Main Authors:	Edmonds, Jae, Forrister, Dirk, Clarke, Leon, de Clara, Stefano, Munnings, Clayton
Format:	Technical Paper
Language:	English
Published:	International Emissions Trading Association, University of Maryland, and Carbon Pricing Leadership Coalition, Washington, D.C. 2020
Subjects:	CARBON DIOXIDE EMISSIONS CARBON PRICING CARBON POLICY GREENHOUSE GAS EMISSIONS CLIMATE CHANGE PARIS AGREEMENT CARBON TRADING CARBON MARKET NATIONALLY DETERMINED CONTRIBUTIONS
Online Access:	http://documents.worldbank.org/curated/en/215681585753172514/The-Economic-Potential-of-Article-6-of-the-Paris-Agreement-and-Implementation-Challenges http://hdl.handle.net/10986/33523

id	okr-10986-33523
recordtype	oai_dc
spelling	okr-10986-335232021-05-25T10:54:42Z The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges Edmonds, Jae Forrister, Dirk Clarke, Leon de Clara, Stefano Munnings, Clayton CARBON DIOXIDE EMISSIONS CARBON PRICING CARBON POLICY GREENHOUSE GAS EMISSIONS CLIMATE CHANGE PARIS AGREEMENT CARBON TRADING CARBON MARKET NATIONALLY DETERMINED CONTRIBUTIONS This technical paper investigates the potential economic and environmental outcomesassociated with the use of Article 6 of the Paris Agreement by participating countries.The extent to which countries use Article 6, and how they use it, will be informed by design choices agreed upon by negotiators in forthcoming Conference of the Parties (COP) meetings, particularly the next one to be held at COP 25 in Chile and by the agreements made between participating parties. We use the Global Change Assessment Model (GCAM), an integrated assessment model, to quantify the economic potential of Article 6. We go on to discuss real world considerations and potential implications of design choices currently under consideration by negotiators. We find that Article 6 has the potential to reduce the total cost of implementing nationally determined contributions (NDCs) by more than half (~250 billion dollars/year in 2030), or alternatively facilitate the removal of 50 percent more emissions (~5 gigatonnes ofcarbon dioxide per year [GtCO2/year] in 2030), at no additional cost. We note, however, that careful framing in both the design and implementation of Article 6 is essential. A poorly designed and implemented framework could frustrate the achievement of Paris goals, whilea well-designed and implemented framework could further them. We conclude by identifying gaps in the research that would be useful to address before COP 25 in Chile. 2020-04-02T20:26:54Z 2020-04-02T20:26:54Z 2019-09 Technical Paper http://documents.worldbank.org/curated/en/215681585753172514/The-Economic-Potential-of-Article-6-of-the-Paris-Agreement-and-Implementation-Challenges http://hdl.handle.net/10986/33523 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank International Emissions Trading Association, University of Maryland, and Carbon Pricing Leadership Coalition, Washington, D.C. Publications & Research Publications & Research :: Working Paper
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	CARBON DIOXIDE EMISSIONS CARBON PRICING CARBON POLICY GREENHOUSE GAS EMISSIONS CLIMATE CHANGE PARIS AGREEMENT CARBON TRADING CARBON MARKET NATIONALLY DETERMINED CONTRIBUTIONS
spellingShingle	CARBON DIOXIDE EMISSIONS CARBON PRICING CARBON POLICY GREENHOUSE GAS EMISSIONS CLIMATE CHANGE PARIS AGREEMENT CARBON TRADING CARBON MARKET NATIONALLY DETERMINED CONTRIBUTIONS Edmonds, Jae Forrister, Dirk Clarke, Leon de Clara, Stefano Munnings, Clayton The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
description	This technical paper investigates the potential economic and environmental outcomesassociated with the use of Article 6 of the Paris Agreement by participating countries.The extent to which countries use Article 6, and how they use it, will be informed by design choices agreed upon by negotiators in forthcoming Conference of the Parties (COP) meetings, particularly the next one to be held at COP 25 in Chile and by the agreements made between participating parties. We use the Global Change Assessment Model (GCAM), an integrated assessment model, to quantify the economic potential of Article 6. We go on to discuss real world considerations and potential implications of design choices currently under consideration by negotiators. We find that Article 6 has the potential to reduce the total cost of implementing nationally determined contributions (NDCs) by more than half (~250 billion dollars/year in 2030), or alternatively facilitate the removal of 50 percent more emissions (~5 gigatonnes ofcarbon dioxide per year [GtCO2/year] in 2030), at no additional cost. We note, however, that careful framing in both the design and implementation of Article 6 is essential. A poorly designed and implemented framework could frustrate the achievement of Paris goals, whilea well-designed and implemented framework could further them. We conclude by identifying gaps in the research that would be useful to address before COP 25 in Chile.
format	Technical Paper
author	Edmonds, Jae Forrister, Dirk Clarke, Leon de Clara, Stefano Munnings, Clayton
author_facet	Edmonds, Jae Forrister, Dirk Clarke, Leon de Clara, Stefano Munnings, Clayton
author_sort	Edmonds, Jae
title	The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
title_short	The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
title_full	The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
title_fullStr	The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
title_full_unstemmed	The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges
title_sort	economic potential of article 6 of the paris agreement and implementation challenges
publisher	International Emissions Trading Association, University of Maryland, and Carbon Pricing Leadership Coalition, Washington, D.C.
publishDate	2020
url	http://documents.worldbank.org/curated/en/215681585753172514/The-Economic-Potential-of-Article-6-of-the-Paris-Agreement-and-Implementation-Challenges http://hdl.handle.net/10986/33523
_version_	1764478950900236288

The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges

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