This reduction means that problems and red lines can again be exchanged, while negotiators work on an agreement within the entire Article 6 regulatory framework. There could also be attempts to link these discussions to other policy priorities at the COP, which could further complicate matters. Article 6 of the Paris Agreement provides for the transfer of mitigation results between the parties, which could then be used to meet their DDDs – the commitments made by those countries under the agreement. If there is no agreement by the end of COP25, the issue will be taken to COP26 in Glasgow in December 2020, so the UK will set aside diplomatic progress to get it over the line. One of the keys to this increased ambition lies in the implementation of Article 6 of the Paris Agreement. However, at COP24 held in Katowice, Poland, last December, the participating countries reached an agreement on the implementation of the Paris Agreement – the so-called Paris regulation – on the implementation of Article 6. That is why Article 6 of the Paris Agreement was at the centre of the UN Climate Change Conference in Bonn, which was the first formal meeting of governments to advance negotiations on the outstanding issues of the Paris regulatory framework. The issue of taking into account the emission reductions carried forward in accordance with Article 6(4) remains a major point of disagreement. Sound accounting rules are essential to ensure that emission reductions cannot be counted more than once (double counting) and that the environmental integrity of the Paris Agreement is preserved. Another sore point is the question of how to manage the quotas generated under the Kyoto Protocol and whether countries can use them under the Paris Agreement. No agreement has been reached on the introduction of fees to support adaptation measures, as was the case under the Clean Development Mechanism (CDM). In view of these and other points, the parties deferred the Article 6 decision to the Glasgow Climate Change Conference. The three separate mechanisms – in accordance with Articles 6.2, 6.4 and 6.8 – have all become part of the Paris Agreement by recognising the different interests and priorities between the parties to the Agreement.
These differences persist and need to be replaced again if the regulatory framework provided for in Article 6 is to be agreed. At the International Climate Change Summit in Madrid in December 2019, climate negotiators will again try to finalise the Article 6 “rules”, which will govern voluntary international cooperation in the field of climate change, including carbon markets. In order to truly understand the task they face and the main areas of the remaining divergences, the first point of contact is the text of Article 6 of the Paris Agreement itself, which is illustrated in a commented form in the graph below. The Paris Agreement outlined the fundamental political lines of the functioning of such a market, but provided limited specificity in terms of its operationalization. .