AOSIS negotiator MJ Mace says a balance is needed to prevent one system from “undermining” the other. It says that OMGE and the share of revenues must be applied to both “because it is becoming increasingly clear that the 6.2 and 6.4 will directly compete”. The Madrid negotiations on Article 6 would create a new system that would replace the Kyoto Protocol, which expires in 2020. A lack of agreement on solving this problem reflects the technical challenges it poses and not the political differences on the appropriate solution, says former co-chair Kizzier. There are strong differences of opinion on how OMGE should be guaranteed in practice. Under the system proposed by Brazil, there would be no appropriate adjustment if the CO2 discharge unit left the country for the first time, but there would be adjustments for all subsequent transfers between other countries of that unit. Mendes added that, to ensure that the bilateral trade in Article 6.2, the overall market mechanism of Article 6.4 and the non-trade framework of Article 6.8 were satisfactorily resolved, maintaining the integrity of the Paris Agreement required some “quite complex mathematics,” Tollmann said. Kelley Kizzier, now Associate Vice President for International Climate at the American NGO Environmental Defense Fund (EDF), was co-chair of the Article 6 negotiations at COP24. It says carbon letter: such a system already exists under the Kyoto Protocol`s own development mechanism, with 2% of “certified emission reductions” (RECs) for administrative costs and the Adjustment Fund. About 15 billion of these AAEs are still in the system, largely due to weak targets that could be easily achieved without climate policy intervention. These AAUs could be used to achieve future objectives under the Paris Agreement, meaning that no further action would be required.
With respect to The Trades covered by Article 6.4, the question arises as to whether appropriate adjustments should be made to the sale of credits for use under the Corsia compensation system for air transport. This can only apply to reductions generated under the host country`s NJC or to savings within or outside its scope. CO2 reductions are expected to offset emissions from air transport under the International Civil Aviation Authority`s (ICAO) Corsia system, although they are not mentioned directly in the Paris text. (Corsia is the United Nations system for compensating for flight emissions.) Somewhat enigmatically, the draft regulation of Article 6.4 refers instead to “purposes other than contributions to CNN” with a language that could cover Corsia or other future systems. Another of the most controversial issues for the negotiations is whether the Kyoto-era projects should be incorporated into the Article 6.4 trading system, as well as the methods that govern how they calculate their CO2 savings and the carbon loan “units” they have already generated. If the market system was active around the world and the cost savings generated by carbon markets were reinvested in the fight against climate change – a big “if” given the slow pace of international progress in the fight against climate change, EDF analysts estimate that emissions reductions over the next 15 years “would increase from 77 [billion tonnes of CO2] to 147 billion tonnes of CO2 in a non-tradeable base scenario, in a comprehensive global exchange scenario. , an increase of 91%. However, in the final days of the Paris negotiations, many countries that had submitted conditional NDCs refrained from learning that they had to transfer their emissions reductions to a buying country.