The implication of market mechanisms of the Paris Agreement for developing countries’ emission reduction targets

Countries need to update and enhance their nationally determined contributions (NDCs) every five years to achieve the long-term goal of the Paris Agreement (PA). Article 6 market mechanisms under the PA allow countries to utilize internationally transferred mitigation outcomes (ITMOs) toward their NDC targets. We are seeing a growing trend of developing countries becoming more interested in participating in Article 6.2 cooperative approaches to generate ITMOs from climate activities. This mechanism aims to raise ambitions in mitigation and adaptation actions to achieve NDC targets and increase further emission reductions beyond the NDCs. However, it is vital to make sure that developing countries fully understand the implications of Article 6 on thier NDC implementation.