New market approaches in accordance with the Paris Agreement

Under the Paris Agreement, all countries have for the first time formulated emission reduction targets. In accordance with Article 6 of the Agreement, emission reductions can be traded between countries and used towards their own targets. The rules are currently being negotiated internationally.

Under the Kyoto Protocol (until 2020), only developed countries had emission reduction commitments that they could fulfil with the help of the Clean Development Mechanism (CDM) and Joint Implementation (JI). Under the Paris Agreement, all countries have for the first time formulated reduction targets for the post-2020 period. The approaches under Article 6 of the Agreement, which allow for cooperation between countries to achieve reduction targets, therefore differ from CDM and JI. If a country wants to sell emission reductions, these reductions must be achieved in addition to the formulated reduction target. It is very important that these reductions are recorded correctly and not double counted. The new approaches will also allow large segments of the economy (e.g., sectors and their policies) to be involved, allowing for more extensive emission reductions.

The new approaches are:

  • Cooperation between countries using internationally transferred mitigation outcomes (ITMOs) in accordance with Article 6.2. of the Agreement. For example, this could involve a linking of emissions trading systems.
  • Use of a new mechanism under the Paris Agreement on the reduction of greenhouse gases (Article 6.4).

The new approaches must ensure environmental integrity and transparency, avoid double counting and contribute to sustainable development. The rules for implementing these new approaches are currently being negotiated (Paris Rule Book).

Switzerland and Climate Cent Foundation have concluded a contract for the use of remaining Foundation assets to jointly launch pilot projects with interested countries and the private sector. The goal is to test these new approaches and develop concrete solutions for the post-2020 period. Switzerland intends to use these experiences in international negotiations.

Further information


Last modification 27.11.2018

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