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Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

Year Published

2024

Contributing Organisations

Climate Action Center of Excellence (CACE)
HFW

Type of Resource

Research/Insights Report

Languages

English

Relevant Topics

Core Topic
Carbon Markets & Carbon Finance
Topic 2
Climate Reporting
Topic 3
Carbon Accounting

Target Audience

Advisors & Consultants
Financial Services Providers
Governments & Policymakers
Real Economy Corporates

Relevant Geography

Global
Bridging Mechanisms for Synergistic Impact: Uniting the European Union’s Carbon Border Adjustment Mechanism and Article 6.2 of the Paris Agreement

Resource Summary

This paper explores the potential synergies between the European Union’s Carbon Border Adjustment Mechanism (CBAM) and Article 6.2 of the Paris Agreement. It highlights how integrating these mechanisms could enhance global climate action by streamlining decarbonisation efforts while addressing equity concerns raised by CBAM’s unilateral nature. The paper provides insights into CBAM’s operational framework, international reactions, and challenges, alongside a detailed discussion on Article 6.2’s cooperative mechanisms using ITMOs (Internationally Transferred Mitigation Outcomes). It concludes with practical recommendations on bridging these frameworks to create equitable, effective climate strategies, making this resource useful for policymakers, climate strategists, and sustainability-focused organisations.

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