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©Inga Menke
December 2018

Beyond offsets? Market mechanisms under the Paris agreement

Dr Carl-Friedrich Schleussner, Bill Hare

One aspect of the Paris Agreement rulebook that hangs in the balance at COP 24 is the role of market mechanisms. Market mechanisms, or more broadly emission trading schemes, have been around for a long time, including, for example the Clean Development Mechanism (CDM) under the Kyoto Protocol. Ongoing negotiations on the rules for markets under the Paris Agreement provide an important moment to reflect on what we want markets to deliver, and to design a system that goes beyond simple offsetting.
Solar cell, Image by Bruno from Pixabay
June 2017

In an analysis prepared for the NDC Partnership our experts looked into the recent developments in terms of NDCs submission and renewables deployment. They also outlined a number of instruments that can be utilised to decrease the gap between current emissions trends and the Paris Agreement compatible emissions pathways.