Carbon credit rights under the Paris Agreement

Carbon credit rights under the Paris Agreement

Emission offsetting is an important supplement to decarbonization strategies of many companies, especially for residual emissions in hard-to-abate sectors. Currently, carbon markets are undergoing significant changes due to the implementation of international governmental cooperation for exchanging emission reductions.

This cooperation is being implemented under Article 6 of the Paris Agreement. Stronger role of governments in carbon markets might have significant consequences for corporates and project developers trading in the market.

  • Would Article 6 limit the rights of project developers to generate carbon credits?
  • How do governments regulate carbon credits ownership?
  • Will corporates be able to freely trade carbon credits under Article 6?

EY Center for Climate Policy, led by Kasia Klaczynska Lewis, in collaboration with the Gold Standard Foundation developed a paper explaining how the evolving role of governments in carbon markets would influence the rights to carbon credits.

Authors: Kasia Kłaczyńska-Lewis, Hugh Salway (Gold Standard), Malwina Burzec, Ewa Waslicka, Elwira Szczęsna, Lilianna Krawczyk, Michał Wyrębkowski

Reviewers: Lev Gantly (Simmons & Simmons), Alexandra Soezer (United Nations Development Programme)

Summary

EY and the Gold Standard Foundation present a paper explaining how the evolving role of governments in carbon markets would influence the rights to carbon credits.

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