Mitigation of Greenhouse Gas Emissions through Market Mechanisms
Jung, Jione | December 2016
Abstract
Article 6 of the Paris Agreement, adopted in 2015, describes that Parties may cooperate voluntarily in the implementation of their nationally determined contributions (NDC) against global warming. Parties may use internationally transferred mitigation outcomes. Also, one Party may use emission reduction credits obtained from a certain mitigation activity in another Party. Article 6, together with paragraph 137 of the decision at COP21, are the provisions that allow Parties to use carbon pricing and market-based approaches to fulfill its NDC. Parties can meet their mitigation targets in the most cost-effective way by taking advantage of differences in the marginal costs of emission reduction across different regions or sectors. The Paris Agreement explains that the ultimate objective of cooperation among participating Parties is to promote environmental integrity and sustainable development.
The mitigation of greenhouse gas emissions using market mechanisms is not a new trend. The Kyoto Protocol adopted in 1997 introduced three types of market mechanisms; emission trading, joint implementation, and the Clean Development Mechanism (CDM). After that, the Bali Action Plan adopted in 2007 stated enhanced action on mitigation based on various approaches which consider use of the market to increase cost-effectiveness. For the market mechanisms developed under the Paris Agreement, Parties were requested to submit their views by next March and there will be a series of round table discussions on the details later on. It is necessary to take note that since the adoption of the Kyoto Protocol, it took only four years to outline the details of the Kyoto mechanism at Marrakesh in 2001, which forecasts that the upcoming discussions will proceed urgently.
Citation
Jung, Jione. 2016. Mitigation of Greenhouse Gas Emissions through Market Mechanisms. © Korea Institute for International Economic Policy. http://hdl.handle.net/11540/10555.Keywords
Work Environment
Urban Environment
Social Environment
Regulatory Environments
Marine Environment
International Environmental Relations
Institutional Environment Assessment
Global Environment
Environmental Sustainability
Environmental Strategy
Environmental Services
Environmental Resources
Environmental Management and Planning
Environmental Issues
Environmental Guidelines
Environmental Effects
Environment and Pollution Prevention
Climate
Climate change
Climate impacts assessment
Global climate change
Emission Control
Environmental Control
Environmental Technology
Land Development
Forestry Development
Fishery Development
Environmental Statistics
Environmental Planning
Environmental Management
Environmental Education
Environmental Capacity
Pollution Control
Nature Protection
Environmental Conservation
Climatic change
Climatic influence
Climatology
Investment bank
Investment policy
Air quality indexes
Ecological risk assessment
Environmental impact evaluation
Analysis of environmental impact
Environmental toxicology
Health risk assessment
Rain and rainfall
Acid precipitation
Ozone-depleting substance mitigation
Greenhouse gas mitigation
Prevention of pollution
Air quality
Air quality management
Pollution
City planning
Urban climatology
Bank investment
Capital investment
Investment banking
Venture capital
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