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The Role of Carbon Markets in the Paris Agreement: Mitigation and Development

In: Climate Change and Global Development

Author

Listed:
  • Henrique Schneider

    (Swiss Federation of Small and Medium Enterprises
    Nordakademie)

Abstract

In its Article 6, the Paris Agreement foresees international cooperation and tasks it with mitigating greenhouse gas emissions, guaranteeing environmental integrity and assuring sustainable development. In its paragraphs, the same article provides for three different systems of international cooperation. The so-called market mechanisms or carbon markets could play a role in two of them. Article 6 makes it apparent that international cooperation and the use of markets are valid—but not exclusive—approaches in reconciling climate change and (sustainable) economic development. The question is how to align both through the operationalization of market systems. This paper provides first an overview of “carbon markets” within the body of the Paris Agreement. Then, it discusses why and how carbon markets reconcile climate change-related action with (sustainable) economic development. Third and lastly, the paper points at some safeguards in the operationalization of the international cooperation using markets as stipulated in Article 6 of the Paris Agreement. The most important safeguard regards to accounting principles.

Suggested Citation

  • Henrique Schneider, 2019. "The Role of Carbon Markets in the Paris Agreement: Mitigation and Development," Contributions to Economics, in: Tiago Sequeira & Liliana Reis (ed.), Climate Change and Global Development, pages 109-132, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-02662-2_6
    DOI: 10.1007/978-3-030-02662-2_6
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    References listed on IDEAS

    as
    1. Richard G. Newell & William A. Pizer & Daniel Raimi, 2013. "Carbon Markets 15 Years after Kyoto: Lessons Learned, New Challenges," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 123-146, Winter.
    2. Paula Castro, 2014. "Climate Change Mitigation in Developing Countries," Books, Edward Elgar Publishing, number 15357.
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