International market mechanisms after Paris

The Paris Agreement includes Article 6 with several provisions, which allow for the use of the international carbon market. In this paper, Cooperative Approaches (CA, Art. 6.2-3) and the Mechanism for Sustainable Development and Mitigation (MSDM, Art. 6.4-7) will be considered as the market mechanisms, which constitute the basis of the international carbon market under the United Nations Framework Convention on Climate Change (UNFCCC). The purpose of this paper is to identify the main goals and aims of the international carbon market, take into account the general context and environment for carbon markets under the Paris Agreement, identify and discuss the main issues of the relevant paragraphs and analyse issues of the interaction and relationship of the provisions including synergies and conflicts. The paper aims at facilitating the discussion among UNFCCC parties while, given the dynamic nature of the topic, it can obviously only be a snapshot of the current status of the discussions.