Definition
A framework under the Paris Agreement that enables countries to cooperate in achieving their emission reduction targets through carbon trading, international partnerships, and non-market mechanisms.
Why It Matters
- Facilitates cost-effective emission reductions through international carbon markets.
- Helps developing countries access funding and technology for decarbonization.
- Enhances transparency and credibility in global climate commitments.
Key Components of Article 6
- Article 6.2: Countries can trade carbon credits through bilateral agreements to meet their emission reduction targets.
- Article 6.4: Establishes a UN-regulated global carbon market to replace older credit systems.
- Article 6.8: Supports climate action beyond carbon trading, such as funding green technology and capacity-building initiatives.
Example: Japan's Joint Crediting Mechanism (JCM) in Southeast Asia
- Facilitates investment in low-carbon projects in partner countries.
- Enables shared emission reduction credits between Japan and host nations.
- Supports renewable energy and energy efficiency projects in developing
Read more: Ministry of Foreign Affairs Japan – Joint Crediting Mechanism (JCM)
Further Reading
