Zeitec Investment Office reposted this
🌍 What is Article 6.4? Article 6.4 of the Paris Agreement is a revolutionary step in global climate cooperation. It establishes a new UN-supervised international carbon market, designed to help countries and private entities achieve emissions reduction targets in a cost-effective and sustainable way. This centralized mechanism builds on the lessons of the Kyoto Protocol’s Clean Development Mechanism (CDM) while introducing stricter safeguards and broader applications. 🔑 Key Features: • Carbon Credits (A6.4ERs): Projects generate emission reductions that are issued as credits. These can be used by countries or companies to meet climate commitments. • Sustainable Development: Every project must demonstrate contributions to the host country’s development goals, ensuring environmental and social integrity. • Global Emissions Reduction: At least 2% of credits are canceled to ensure an overall reduction in global emissions. • Adaptation Funding: 5% of the proceeds from credit issuance go to the Global Adaptation Fund, supporting vulnerable nations. 💡 How It Works: • Projects in host countries reduce greenhouse gas emissions (e.g., building wind farms or restoring forests). • Verified reductions are turned into A6.4ERs. • Credits can be traded internationally, creating a global marketplace for carbon reduction. 🌟 Benefits: • Scales Climate Ambition: Encourages investment in green technologies and projects worldwide. • Private Sector Participation: Companies can actively contribute to emissions reduction while benefiting from carbon credits. • Equity and Development: Drives technology transfer and financial support to developing countries. ⚠️ Challenges: • Ensuring additionality: Projects must prove that emissions reductions wouldn’t occur without the program. • Avoiding double-counting: Rigorous accounting rules ensure emissions reductions are not claimed by multiple entities. • Balancing environmental integrity with economic incentives. 🌱 Why It Matters: Article 6.4 doesn’t just promote cost-effective climate action—it aligns global markets with sustainable development goals, ensuring that climate solutions benefit everyone. 💬 Let’s discuss: How can businesses and governments collaborate to make the most of this new mechanism? #ClimateAction #Sustainability #ParisAgreement #CarbonMarkets #Article6.4