Recommendations for SBSTA49 agenda item 11(b) as it relates to rules, modalities and procedures for the mechanism established by article 6.4 of the Paris Agreement

The document argues for a fundamental shift from 'zero-sum offsetting' to a 'results based climate finance' (RBCF) model for the Article 6.4 mechanism. It recommends strict environmental integrity criteria, including a partial cancellation rate for credits and the exclusion of emission removals. To prevent the carry-over of failures from the Kyoto Protocol, it proposes a full re-assessment of existing Clean Development Mechanism (CDM) projects and prohibits the use of pre-2020 units for post-2020 targets. The brief also emphasizes the need for independent governance, a formal grievance mechanism to protect human rights, and mandatory local stakeholder consultations.

• The Sustainable Development Mechanism (SDM) should transition away from carbon offsetting and instead function as a tool for results based climate finance (RBCF). Under this model, host countries account for emission reductions while financing parties account for the financial contribution toward their climate finance commitments under Article 9 of the Paris Agreement.
• To ensure an overall mitigation of global emissions, the document recommends that a partial cancellation rate of at least 50% be applied to units at the point of first transfer.
• Environmental integrity should be maintained by limiting the scope of SDM projects to emission reductions only, excluding removals, and restricting eligibility to sectors and gases already included in the host Party's Nationally Determined Contribution (NDC).
• The transition from Kyoto Protocol (KP) mechanisms to the SDM must be strictly controlled: pre-2020 units should not be used for post-2020 targets, and existing KP projects must undergo a full re-assessment against stringent criteria before transitioning.
• Governance of the SDM must be impartial and transparent, featuring cumulative term limits (maximum of two terms of two or three years) and the prohibition of representatives with vested interests in registered projects to prevent conflicts of interest.
• The mechanism requires robust social safeguards, including an independent body to manage a grievance process for human rights violations and mandatory local stakeholder consultations prior to project implementation.
• To foster sustainable development, the SDM should adopt an environmental and social policy that includes monitoring, validation, and requirements for Parties to report on how activities contribute to sustainable development in the host country.

APA

Carbon Market Watch (2018). Recommendations for SBSTA49 agenda item 11(b) as it relates to rules, modalities and procedures for the mechanism established by article 6.4 of the Paris Agreement. https://carbonmarketwatch.org/wp-content/uploads/2018/11/Recommendations-for-SBSTA49-A6.4_web_final.pdf

Chicago

Carbon Market Watch. Recommendations for SBSTA49 agenda item 11(b) as it relates to rules, modalities and procedures for the mechanism established by article 6.4 of the Paris Agreement. 2018. https://carbonmarketwatch.org/wp-content/uploads/2018/11/Recommendations-for-SBSTA49-A6.4_web_final.pdf.

Wikipedia

{{cite report |author=Carbon Market Watch |title=Recommendations for SBSTA49 agenda item 11(b) as it relates to rules, modalities and procedures for the mechanism established by article 6.4 of the Paris Agreement |date=November 2018 |url=https://carbonmarketwatch.org/wp-content/uploads/2018/11/Recommendations-for-SBSTA49-A6.4_web_final.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{carbonmarketwatch2018recommendations, author = {{Carbon Market Watch}}, title = {{Recommendations for SBSTA49 agenda item 11(b) as it relates to rules, modalities and procedures for the mechanism established by article 6.4 of the Paris Agreement}}, institution = {Carbon Market Watch}, year = {2018}, month = nov, url = {https://carbonmarketwatch.org/wp-content/uploads/2018/11/Recommendations-for-SBSTA49-A6.4_web_final.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }