Robust Accounting of International Transfers under Article 6 of the Paris Agreement

This research paper examines the accounting challenges and options for international transfers of mitigation outcomes under Article 6 of the Paris Agreement. It focuses on ensuring environmental integrity by preventing double counting and addressing the diversity of nationally determined contributions (NDCs), specifically regarding metrics, time frames, and the nature of internationally transferred mitigation outcomes (ITMOs).

• The paper recommends that all Parties use an emissions-based approach for corresponding adjustments, where adjustments are applied to the total net GHG emissions level reported in a country's GHG inventory, rather than an emission budget approach. This is intended to avoid the risk of transferring "hot air" (surplus allowances not from mitigation action) and to prevent the creation of assets that might hinder future ambition increases.
• To avoid double claiming, the paper identifies that corresponding adjustments are theoretically unnecessary if mitigation outcomes occur outside the scope of the transferring country's NDC target, or if the acquiring country uses the outcomes for purposes other than achieving its NDC target.
• The use of t CO2e is proposed as the most effective generic metric for ITMOs because it simplifies the application and reconciliation of corresponding adjustments and ensures that the mitigation outcome in the transferring country corresponds to that in the acquiring country.
• Single-year targets (e.g., for 2030) create significant risks for cumulative global GHG emissions. If multi-year mitigation outcomes are used to meet a single-year target, the acquiring country may pursue a higher emissions path in pre-target years, potentially increasing aggregated cumulative emissions.
• The paper identifies four approaches for accounting for the vintage of mitigation outcomes: (A) continuous multi-year target periods, which provide the highest assurance against cumulative emission increases; (B) single-year targets where ITMOs are generated and used only in target years; (C) various target time frames using linearization or averaging of ITMO activity; and (D) multi-year emission trajectories consistent with NDC targets.
• To address the use of different Global Warming Potential (GWP) values in first NDCs, the paper suggests options including the adoption of common GWP values for all countries or those involved in a specific transfer, or the conversion of corresponding adjustments to reflect GWP differences.
• For countries with non-GHG mitigation targets (e.g., renewable energy capacity), the paper suggests either converting these targets into GHG emission targets or applying a pair of corresponding adjustments in different metrics that correspond to the same mitigation outcome.
• The paper proposes a tiered or modular approach to governance, where general accounting provisions apply to all countries for their NDCs, while specific, more robust accounting rules for international transfers apply only to those countries choosing to engage in such transfers.
• Tracking ITMOs can be achieved through centralized governance (similar to the Kyoto Protocol's International Transaction Log) or decentralized governance. In decentralized systems, consistency can be maintained by joining international transaction logs, using linked ETS registries, or using crediting mechanism registries.

APA

Schneider, L., Füssler, J., Kohli, A., Graichen, J., Healy, S., Cames, M., Broekhoff, D., Lazarus, M., Theuer, S. L. H., & Cook, V. (2017). Robust Accounting of International Transfers under Article 6 of the Paris Agreement. Stockholm Environment Institute. https://www.sei.org/mediamanager/documents/Publications/Climate/Robust_accounting_paris_agreement_discussion_paper_28092017.pdf

Chicago

Schneider, Lambert, Jürg Füssler, Anik Kohli, Jakob Graichen, Sean Healy, Martin Cames, Derik Broekhoff, et al. Robust Accounting of International Transfers under Article 6 of the Paris Agreement. Stockholm Environment Institute, 2017. https://www.sei.org/mediamanager/documents/Publications/Climate/Robust_accounting_paris_agreement_discussion_paper_28092017.pdf.

Wikipedia

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BibTeX

@techreport{schneider2017robust, author = {Schneider, Lambert and Füssler, Jürg and Kohli, Anik and Graichen, Jakob and Healy, Sean and Cames, Martin and Broekhoff, Derik and Lazarus, Michael and Theuer, Stephanie La Hoz and Cook, Vanessa}, title = {{Robust Accounting of International Transfers under Article 6 of the Paris Agreement}}, institution = {Stockholm Environment Institute}, year = {2017}, month = sep, url = {https://www.sei.org/mediamanager/documents/Publications/Climate/Robust_accounting_paris_agreement_discussion_paper_28092017.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }