The Paris Agreement promotes voluntary cooperation in the implementation of Parties' Nationally Determined Contribution (NDC) “to allow for higher ambition in their mitigation and adaptation actions and to promote sustainable development and environmental integrity”. Multiple options for cooperation to mobilize significant resources towards achieving these objectives are introduced by Article 6 (paragraphs 1 and 2). Article 6 cooperation should support short-term climate action and contribute to attaining long-term sustainable development goals of participating countries, such as those stated in long-term low-emission development strategies (LT-LEDS), development priorities as reflected in the Sustainable Development Goals (SDGs) of countries, and Net Zero Emissions (NZE) targets.
To this end, Article 6.2 guidance covers both short-term contributions and long-term impacts. However, the guidance lacks specificity on how the long-term aspects link to NDC implementation and Article 6 participation. Such links are important for accounting for the long-term impacts of mitigation activities in decision-making processes to advance sustainable development globally.
This note aims at strengthening countries’ ability to utilize the international carbon market, specifically Article 6, for achieving long-term climate and development targets. The note:
- Discusses the existing guidance for participation in Article 6.2. This guidance includes elements relating to both the short-term and long-term perspectives.
- Addresses how the long-term impacts of international carbon market engagement can be integrated into the criteria for determining eligible mitigation activities.
- Discusses how eligibility criteria can address sustainable development impacts beyond SDG 13, i.e., beyond climate change mitigation outcomes (MOs).