Introduction This briefing gives an overview of the current discussions under Article 6 of the Paris Agreement which establishes the foundation for market-based climate measures after 2020. It lays out key lessons from the Kyoto Protocol markets, highlights essential issues within the Article 6 negotiations, and provides recommendations on how to solve them. It concludes…
Executive Summary The Clean Development Mechanism (CDM) was set up under the 1997 Kyoto Protocol to allow developed countries to buy emissions reductions from developing countries in the form of credits, called Certified Emissions Reductions (CERs). The objectives of the CDM are to help developed countries achieve their climate commitment and to assist developing countries in achieving sustainable…
Introduction Over the past 20 years, global efforts to mitigate the effects of climate change have increasingly relied upon the implementation of local mitigation projects. While aiming to reduce emissions in the most cost-effective way, some of these projects have built up a record of adverse impacts on local people, resulting in the displacement of…
The Paris Agreement marks a new era for international climate action in general, and specifically for international carbon markets. Though the agreement does not mention markets per se, Article 6 paragraph 4 establishes what has become to be known as the Sustainable Development Mechanism (SDM) which builds on and shares some features of the Kyoto flexible mechanisms namely the Clean Development Mechanism (CDM) and Joint Implementation (JI).
The Paris Agreement represents a new era for international climate action, including for international carbon markets. Humans have emitted so much into the atmosphere that even if compensated, very little can still be emitted to limit serious consequences of climate change. 2°C of warming would have very negative effects, which is why it is important to swiftly work towards the Paris goal of the 1.5°C limit. If carbon markets are to help work towards this goal, they must work to rapidly increase ambition and guarantee high environmental integrity.
Not only man-made climate change, but also certain actions to address climate change can directly result in adverse impacts on human rights. While well intentioned, certain climate mitigation actions implemented under the UNFCCC have caused harm to the environment and people—even infringing on rights to life, health, food, water and sanitation, housing, and culture, among others.
Only very few countries have outlined in their Intended Nationally Determined Contributions (INDCs) that they will use international trading as a means to help achieve their climate goals. However, despite the limited role of markets expressed by most industrialised countries in their INDCs, such as the EU and the US, the political reality regarding domestic carbon pricing schemes looks different: jurisdictions responsible for 40% of the global economy have already implemented carbon pricing mechanisms.
Climate change is a global injustice to present and future generations, and one of the greatest human rights challenges of our time. For one, climate change has a significant effect on several human rights, such as the right to safe and adequate water and food, the right to health and adequate housing, and the right to life. On the other hand, certain actions to address climate change can directly result in adverse impacts on human rights.
ENGLISH The Santa Rita Hydroelectric Plant in the Dolores River in the Alta Verapaz region in Guatemala was registered as a Clean Development Mechanism (CDM) project in June 2014. The communities living in the Alta Verapaz region are completely dependent on the water of the river for their livelihoods. The Guatemalan Agreement on Identity and Rights of Indigenous Peoples…
We, the undersigned, note that climate change-related impacts have a range of implications, both direct and indirect, for the effective enjoyment of human rights, and recognize that while these implications affect individuals and communities around the world, the effects of climate change will be felt most acutely by those segments of the population who are already in vulnerable situations owing to factors such as geography, poverty, gender, age, indigenous or minority status and disability.
Carbon pricing 
International transport 
Climate governance 
Fair climate action