Episode 7: There's a New Global Carbon Trading System—Article 6. Is It What We Need?
COP26 Part I
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Jacob, Cami, and Casey discuss the theory and politics of the new global carbon trading system established by Article 6 of the Paris Agreement. How is this carbon trading system different from all the others? Let us count the ways. The Pricing Nature team is joined by experts Gilles DuFrasne (Carbon Market Watch), Rishi Bhandary (Global Economic Governance Initiative, Boston University's Global Development Policy Center), Bianca Gichangi (Eastern Africa Alliance on Carbon Markets and Climate Finance), and Michai Robertson (Alliance of Small Island States).
Notable quotes:
On the power of the Paris Agreement’s Nationally Determined Contributions:
Rishi Bhandary: The Paris agreement was not designed to be a compliance heavy international agreement…. It does not have, by design, the kinds of legal teeth that some other legal agreements would have… The idea was that countries will deliver on what they have committed to because they chose what to commit to.
On the carryover of emissions reduction credits from the Kyoto Protocol:
Gilles Dufrasne: The final agreement that was reached at the COP is really weak. That's probably an understatement; it's really far below where we would have liked to see. I think countries have compromised too much on this issue.
On the importance of coming to a final decision on the global carbon trading system:
Bianca Gichangi: There was a real risk that, if we didn't get a decision this year, people would just move on, you know? And it's like, that's not what you want... I was really, really happy with the outcome.
Michai Robertson: [Trading] was already happening. And [it] was happening without rules. We didn’t have this guidance to give to countries, and… the world is moving on without us.
Further reading on today’s episode:
The Economic Potential of Article 6 of the Paris Agreement and Implementation Challenges, International Emissions Trading Association
Business leaders urge Brazil to take lead on climate or be left behind, Reuters
The Clean Development Mechanism, UNFCCC
COP26: Half-baked carbon market rules fail to take heat off the climate, Carbon Market Watch
Global Carbon Budget estimates from the IPCC, Mercator Research Institute, CarbonBrief
Peru and Switzerland sign ‘world first’ carbon offset deal under Paris Agreement, Climate Change News
Human rights concerns linked to CDM projects in Panama, Uganda, and Kenya
Cover Photo by Cami Ramey