Article 6 of the agreement, which takes into account the importance of international carbon markets, continues to apply, after the conclusion of an international agreement in accordance with Article 11 bis, paragraph 7, of the ETS Directive and Article 5, paragraph 3, of the DSE, to CDM credits from new LDC projects for the period from 2013. Any extension of eligibility criteria to allow new loans from other countries, with the exception of the credits used under Article 11 bis, paragraph 5, would require an amendment to the SEE DIRECTIVE. Loans in least developed countries and other countries that were launched before 2013 will only be accepted if they come from countries that have ratified the agreement. Countries can also cooperate without using markets and non-market-based approaches can be integrated into market-based approaches. Non-market-based approaches have been promoted by countries such as Bolivia and Venezuela and could include, for example, measures to promote renewable energy. However, countries that use them to develop international trade must provide a clear picture of the impact of these transfers on their own carbon stocks, and their accounting must be done with the United Nations Framework Convention on Climate Change (UNFCCC). To contribute to the goals of the agreement, countries presented comprehensive national climate change plans (national fixed contributions, NDC). These are not yet sufficient to meet the agreed temperature targets, but the agreement points to the way forward for further measures. In the eu-China joint declaration on climate change adopted at the 2015 EU-China Summit, the EU and China agreed to further strengthen bilateral cooperation on carbon markets. International carbon markets can play a key role in reducing global greenhouse gas emissions cheaply. The adoption of a second commitment period of the Kyoto Protocol for the period after 2012, during which other industrialized countries commit to achieving comparable emission reductions and commit to making an appropriate contribution based on their responsibilities and capabilities, is therefore not an international agreement within the meaning of Article 11 bis, paragraph 7, the ETS Directive and Article 5 , paragraph 3, of the burden-sharing decision. EU legislation is very open about the scope of bilateral agreements that could be concluded. Climate negotiators have given the green light to the development of international carbon markets under the Paris Agreement for the Development of Carbon Markets, but most of the credits are likely to be used in countries of origin.
Here`s a look at the accounting challenges and the impact on supply and demand. The Commission anticipates that potential bilateral agreements would focus on creating a demand for credits under new market mechanisms and steering the implementation of these new market mechanisms. The Commission is actively involved in the World Bank`s programme to promote these initiatives. The Paris Agreement provides a solid and ambitious basis for the exploitation of international markets and strengthens international objectives, transparency and accountability of the parties.