The Road to COP 25
ICC is the global business focal point to the UNFCCC and in 2017, was granted Observer Status at the United Nations General Assembly (UNGA), the first time a private sector organization has been admitted formally into the United Nations system.
Business strongly supports the use of international market-based approaches and calls on Parties to complete guidance on Article 6 of the Paris Agreement through the Paris Rulebook.
Business stands ready to inform the process of identifying the best ways forward to build-up a framework for Article 6. ICC’s recommendations are outlined in “Business Views on Market Mechanisms—Articles 6(1) to 6(7) of the Paris Agreement” and include:
- Building a framework for MRV of emissions that takes into consideration generally accepted existing international and national MRV frameworks1 and that is linked to the transparency framework being developed under Article 13 of the Paris Agreement.
- Creating ambition and predictability by developing comparable and measurable standards for emission reduction for NDC reviews so as to allow evaluation of mitigation actions, raise ambition and understand and avoid impacts such as carbon leakage.
- Consulting with experts of specific economic activities to establish further global emission reduction approaches on a sectoral basis.
- The rules must be clear and flexible to incentivise business participation while protecting environmental integrity and avoiding double-counting/ claiming.
- Transaction costs must be minimised to encourage the involvement of small and medium-sized enterprises.
- It is essential that Article 6 takes into account learnings from the involvement of small and medium-sized enterprises.