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)