Professor Forrest Fleischman, a forestry expert at the University of Minnesota, points out that while nature plays an important role in the carbon cycle, human degradation of nature is a major source of emissions. He says natural climate change should simply be called what it is: land use change. Hector Pollitt, an economist at cambridge Econometrics, has previously dismissed the idea that carbon prices are the most cost-effective way to reduce emissions as a „neoclassical fantasy.“ In addition to the increased quantitative targets, China has now committed to reaching emissions peaks „before 2030,“ while its first NDC aimed to do so „around 2030“ and „do their best to reach its peak sooner.“ In addition, China has officially included its goal of „achieving carbon neutrality by 2060“ in the latest document. Emissions from international transport are generally not covered by existing climate commitments under the Paris Agreement, known as „Nationally Determined Contributions“ (NDCs). The report suggests that efficiency alone will not be enough to decarbonise sectors and that alternatives such as biofuels, synthetic fuels, hydrogen and electrification are needed. One of the first draft rules of Article 6 angered indigenous and human rights groups, who noted the lack of references to human rights, free, prior and informed consent (FPIC) and the establishment of an independent grievance mechanism for carbon offset projects. Finally, the request for a complaint procedure was granted. The Associated Press reported that „China is not offering significant new goals,“ while CNN said that „the submission is a disappointment for leaders who have pressured the country to make a significant leap in its promises and accelerate its plans to decarbonize its economy.“ There are strong differences of opinion on how the OMGE should be guaranteed in practice. According to the Green Finance Committee of the China Society for Finance and Banking – a Beijing-based organization that works to promote green finance – carrying out green and low-carbon projects in China will require a cumulative investment of 487 trillion yuan (about $76 trillion) over the next three decades. Carbon pricing has already been introduced by dozens of countries and subnational governments, but as the NGO Carbon Market Watch explains in a report on the subject, „creating a global or even national carbon market is a difficult task.“ Lists a number of measures, including ending illegal deforestation by 2020 and increasing the share of renewable energy from 39% in 2010 to 79% by 2030. This figure could be increased to 81 per cent with the support of the international community. Also focuses on water.

Denounces capitalism as „a system of death“ and rejects carbon markets. Proposes to distribute the carbon budget among countries, 89% of which go to developing countries. Bolivian INDC. Overall, Article 6 sees international cooperation, including carbon markets, as a means to increase climate ambitions. It proposes three mechanisms to do so, the rules of which were hotly debated until they were finally agreed at COP26 after four years of negotiations. Meanwhile, it is said, the solutions with the greatest potential for CO2 removal are afforestation (0.5-10.1 GtCO2e per year), soil carbon sequestration in arable land and grasslands (0.4-8.6 GtCO2e per year) and bioenergy with carbon capture and storage (BECCS) (0.4-11.3GtCO2e per year). According to Professor Wang, although there is no technical problem in calculating total carbon emissions at the national level, it can be difficult to implement such a new control mechanism at the provincial and prefectural levels due to the lack of solid statistics and a robust emissions accounting system. Under Brazil`s proposed system, there would be no corresponding adjustment when the climate protection „unit“ first left the country, but there would be adjustments for onward transfers between other countries in that unit. Mendes adds: The second trading mechanism is introduced by Article 6.4, which creates a new international carbon market and a body to oversee its operation. While Article 6(2) deals with trade between countries, Article 6(4) deals with projects carried out by `public and private entities`. The 32-page paper outlines how countries should reduce emissions, adapt to climate impacts and finance the low-carbon economy in the coming decades. „[One of the challenges is] an increasingly complex and challenging geopolitical landscape that does not suggest that China is playing its proper role as a strong player in the global decarbonization process – this is related to industrial value chains, finance and trade, among other things.“ „Transition to a low-carbon economy“ and avoid an increase in emissions beyond business-as-usual projections, based on international support.

The INDC of Kuwait. Unlike the Kyoto Emissions Trading Agreements, Article 6(4) requires markets to achieve a „global emission reduction“ (EGMO). This means that they should ensure a net reduction in emissions, rather than simply offsetting the CO2 released in one country by economies elsewhere. The fact that climate change and biodiversity loss have many of the same causes means that some solutions can treat both at the same time, for example. B by preserving ecosystems that store both carbon and support native species. This has made it difficult to estimate the crucial question of how big its emissions will be and whether they fit into global carbon budgets to stay below 1.5°C or 2°C. Given the limited number of countries that have confirmed that they will use international credits and the fact that they are currently not allowed to be satisfied in most national and regional carbon markets, it is not currently clear what the demand for these credits will be. In addition, the country will need „transitional funding“ to decarbonise hard-to-decarbonise sectors, such as „double high“ industries, agriculture, shipping and aviation. At another press briefing, Wang reaffirmed China`s commitment to meeting its climate commitments after being asked to comment on criticism that China`s NDC was „not ambitious enough,“ the newspaper said.

At the same time, a paper from the Environmental Defense Fund states that emissions trading schemes can „reduce political opposition to more ambitious targets,“ citing examples from the EU`s Emissions Trading Scheme, the Regional Greenhouse Gas Initiative and California`s cap-and-trade program. It concludes that climate ambitions with global carbon markets could almost double over the next 15 years compared to current NDCs. Improving land management practices includes moving from industrial agriculture to more sustainable methods such as agroecology or agroforestry, increasing the carbon content of soils through the use of catch crops, and promoting soil health by reducing the amount of chemical fertilizers introduced to the land. However, many parties, particularly those concerned about the integrity of these carbon markets and their potential to lead to more emissions, may not be willing to compromise in the interest of an agreement in Madrid. This reduction means that problems and red lines can be exchanged again as negotiators work towards an agreement on the settlement of Article 6. There could also be attempts to link these talks to other political priorities at the COP, making things even more complicated. Nature-based solutions work either by increasing carbon storage, for example. B by planting more trees, or by avoiding greenhouse gas emissions, . B by limiting deforestation.

Seddon and others often divide solutions into three broad categories: the problem would arise if a host country sold Article 6 carbon credits created in a sector that is „outside“ the scope of its NDC rather than falling „into“ the promise. Another of the most controversial issues for the negotiations is whether Kyoto-era projects should be included in the Article 6(4) trading scheme, as well as the methods of calculating their CO2 savings and the „units“ they have already generated. „It`s hard to imagine how countries will agree on the right options and the right accounting rules [and] methodologies if we don`t even reach an agreement to eliminate those that are patently incompatible. I mean, it`s not even climate ambition, in many cases it`s common sense. COP25 has already been the subject of much drama after the Chilean summit was briefly cancelled after mass unrest in Santiago, the host city, before being hastily moved to the Spanish capital. An unconditional reduction in emissions of 20% by 2030 compared to the status quo. A 30% discount is offered on condition of international funding. This would represent a 22% increase over 2010 emissions. Also sets out Peru`s position on the Paris Agreement. The INDC of Peru. While insisting that Brazil is „absolutely opposed to double counting when it comes to carbon credits,“ he also argued that it should not be necessary for a country that hosts offset schemes to make appropriate adjustments to reflect the sale of loans. The lack of agreement on how to solve this problem reflects the technical challenges it poses, rather than political disagreements over the appropriate solution, says former co-chair Kizzier.

„As you move forward, the role of forests, soils, blue carbon, technological solutions [to remove CO2 from the atmosphere] comes into play. But the initial phase is to extract as much carbon as possible from the global energy system. Guo says there is no need to question the sincerity and seriousness of China`s promises, as leaders have made it clear that the country must switch to a low-carbon economy for its own benefit. But the transition is still not easy. There is therefore disagreement as to whether – and if so, how – the many mitigation methods, projects and emission credits of the Kyoto era should be included in the Article 6(4) market. .