Key to the success of COP26 is concrete progress on the implementation of Article 6 of the Paris Agreement, which would not only provide a global framework for international cooperation and transfer of emissions reductions/removals between states, but would allow full engagement of the private sector and greater certainty in the voluntary carbon markets. The sticking point, as expected, is how to implement a share of proceeds for adaptation support from market mechanisms under Article 6.2 and 6.4.
Robust wording needs to be agreed at COP26 in order to ensure that any cooperative approach does not lead to an actual net increase in emissions due to double counting reduction efforts but still facilitates ambitious action from both the public and private sectors. There has been increasing focus on wording relating to human rights, and the need to protect the local communities when offsetting projects are created.
The UNFCCC secretariat released updated texts on Articles 6.2, 6.4 and 6.8 this morning. Progress has been made, with the number of areas in dispute reduced in the text, following discussions throughout the week. However, there is still some way to go. Further consultations are taking place at COP 26 on these draft texts this afternoon. President Alok Sharma released a note yesterday evening pushing for technical negotiations to be concluded to the extent possible by 7pm this evening.