"The proposed Policy Framework in this paper has been drafted on a unilateral basis for a Party to declare its preferred approach towards implementing a Cooperative Approach under Article 6.2."
Article 6.2 of the Paris Agreement is expected to support a bottom-up approach to markets that require considerably higher levels of engagement and oversight from host countries. Specifically, the decisions on how to quantify, monitor, verify, authorize, and report emission reductions (ERs) under Article 6.2 are largely up to the participating countries. Transfers of Mitigation Outcomes (MOs) will trigger corresponding adjustments of the host country’s Nationally Determined Contributions (NDCs). They will require close attention from the authorities of the host country’s mitigation pledges to ensure the integrity and achievement of NDC goals. Countries that host cooperative activities will need robust policies and regulations and strong institutional arrangements and procedures.
The proposed Policy Framework in this paper has been drafted on a unilateral basis for a Party to declare its preferred approach towards implementing a Cooperative Approach under Article 6.2. The Policy Framework is intended to provide the minimum legal foundation required to give Parties (including private sector entities) the necessary certainty regarding their rights and obligations as participants in the Cooperative Approach, including the ability to enforce cross-border contractual arrangements. The Policy Framework is also intended to facilitate negotiations and subsequent agreement between two or more Parties, and the Policy Framework does not in itself create a compelling and binding Cooperative Approach between Parties.