Linking heterogeneous climate policies (consistent with the Paris Agreement)

Mehling, Michael A. and Metcalf, Gilbert E. and Stavins, Robert N.; Stavins, Robert N. and Stowe, Robert C., eds. (2017) Linking heterogeneous climate policies (consistent with the Paris Agreement). In: Market Mechanisms and the Paris Agreement. Harvard Kennedy School, USA, pp. 43-46.

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    Key Points -International linkage of regional, national, and subnational climate policies could play an important role in supporting the ramp up of ambition in Nationally Determined Contributions (NDCs) over time and so contribute to the success of the Paris Agreement. -Linkage has the potential to lower overall costs of mitigation, given the wide range of marginal abatement costs across countries, and also can lower administrative costs of compliance and help build political momentum, both of which can contribute to scaling up ambition. -The bottom-up nature of the Paris Agreement has led to great heterogeneity of NDCs, which can pose challenges for linking. These challenges are not insurmountable, but will require thoughtful guidance for the effective operation of key provisions for linking in Article 6 of the Paris Agreement. -Article 6 guidance can facilitate linkage by, among other things, providing clear definitions and principles for internationally transferred mitigation outcomes (ITMOs), taking into account the heterogeneous nature of NDCs.