The document discusses issues related to the design of the Article 6.4 mechanism for the Paris Agreement. It notes that using a single baseline approach would not work due to variability between sectors and countries. It also says the relationship between conservative baselines and incentives for project developers, as well as how baselines interact with national climate commitments and incentives, needs to be resolved. The document is from a meeting of the Climate Change Expert Group to discuss these challenges in designing the Article 6.4 mechanism.

1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Climate Change Expert Group (CCXG)
Global Forum on the Environment and
Climate Change
1 & 2 October 2019
IEA Headquarters, 9 rue de la Fédération, Paris
BG A - Part I: Article 6.4 mechanism design issues (what role
for baselines in ensuring environmental integrity?)

2. 2 Climate Change Expert Group
Article 6.4 mechanism design issues,
Part I
1. A one-size-fits-all baseline approach wouldn’t work, due to
variability in sectors and countries…will nevertheless need to
look at nitty-gritty details.
2. Relationship between conservativeness of baselines and
incentives for project developers needs to be resolved.
3. Need to arrive at a common understanding of the relationships
and interaction between baselines, NDC ambition and
incentives.
Breakout Group A