Carbon Market Watch input to SBSTA on matters related to article 6 of the Paris Agreement Share of proceeds for adaptation and avoiding double use of outside NDC A6.4ERs

The document argues that a share of proceeds for adaptation should be levied on all Article 6.2 and 6.4 transactions as a monetary contribution with a floor value to ensure stable funding. It further asserts that all Internationally Traded Mitigation Outcomes (ITMOs) and Article 6.4 emission reductions (A6.4ERs), including those from sectors or gases outside a host Party's NDC, must be subject to corresponding adjustments to prevent double counting and maintain environmental integrity.

• A share of proceeds (SOP) for adaptation should be applied to all credits under both Article 6.2 and 6.4. The author argues that applying this requirement does not hinder bilateral cooperation and that for linked Emissions Trading Systems (ETS), accounting for the net flow of allowances as an ITMO transfer is not necessary for the linkage to function or provide benefits.
• To avoid the instability seen under the Clean Development Mechanism (CDM), where in-kind levies were affected by price crashes, the SOP for adaptation should be a monetary contribution. This should consist of a percentage of the price paid for the first transfer of the unit combined with a minimum absolute monetary value, such as 0.20 USD per unit, to serve as a backstop.
• All A6.4ERs and ITMOs should require corresponding adjustments, including those generated from sectors or gases not covered by the host Party's NDC. The document states that exempting 'outside scope' reductions from these adjustments creates a perverse incentive against expanding the scope of NDCs.
• A uniform policy of corresponding adjustments for all A6.4ERs is proposed as the most practical solution because NDCs are often bottom-up and lack clarity on what is included in their scope, which could lead to 'gaming' if Parties are allowed to define scope at the time of authorization.
• Corresponding adjustments must be applied to all transfers of ITMOs and A6.4ERs to prevent double counting, regardless of whether the transfer is international or domestic (e.g., to an airline for CORSIA compliance or a company for voluntary goals). Without these adjustments, the guarantee that emissions were reduced beyond a baseline cannot be maintained if the host country also counts the reduction.

APA

Carbon Market Watch (2021). Carbon Market Watch input to SBSTA on matters related to article 6 of the Paris Agreement Share of proceeds for adaptation and avoiding double use of outside NDC A6.4ERs. https://carbonmarketwatch.org/wp-content/uploads/2021/04/Carbon-Market-Watch-Art6-April-2021-submission.pdf

Chicago

Carbon Market Watch. Carbon Market Watch input to SBSTA on matters related to article 6 of the Paris Agreement Share of proceeds for adaptation and avoiding double use of outside NDC A6.4ERs. 2021. https://carbonmarketwatch.org/wp-content/uploads/2021/04/Carbon-Market-Watch-Art6-April-2021-submission.pdf.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=Carbon Market Watch input to SBSTA on matters related to article 6 of the Paris Agreement Share of proceeds for adaptation and avoiding double use of outside NDC A6.4ERs |date=April 2021 |url=https://carbonmarketwatch.org/wp-content/uploads/2021/04/Carbon-Market-Watch-Art6-April-2021-submission.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2021carbon, author = {{Carbon Market Watch}}, title = {{Carbon Market Watch input to SBSTA on matters related to article 6 of the Paris Agreement Share of proceeds for adaptation and avoiding double use of outside NDC A6.4ERs}}, publisher = {Carbon Market Watch}, year = {2021}, month = apr, url = {https://carbonmarketwatch.org/wp-content/uploads/2021/04/Carbon-Market-Watch-Art6-April-2021-submission.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }