Article 6 of the Paris Agreement created a framework for cooperation between Parties to drive mitigation ambition and the cost-efficiency of investments by allowing investments from developed to developing countries in programs and projects reducing greenhouse gas emissions. Article 6 of the Paris Agreement enables countries to voluntarily trade emissions reductions or removals (“mitigation outcomes”), allowing one country’s mitigation outcomes to count towards another’s NDC. This cooperation channels international finance to projects facing barriers like limited funding or technology. This emerging carbon market supports the implementation of the Paris Agreement, while emphasizing the protection of human rights and the achievement of social equity, gender equality, and sustainable development.
This explainer aims to provide a high-level overview of how carbon finance under Article 6 can contribute to mitigation ambition, while also advancing equitable and inclusive outcomes.
The Explainer focuses on the concept of Gender Equality and Social Inclusion (GESI), a framework widely used across international development to ensure vulnerable and underserved groups can participation in, contribution to, and benefit from sustainable development.
Principal authors: Paula Gutierrez, Francesco Dinmore (GGGI), Ingvild Solvang (GGGI), Mark Hopkins (GGGI), Sohna Ngum, (GGGI), and Wesley Ramnauth (GGGI).
Source: GGGI
