Through Article 6, the Paris Agreement provides an opening for Parties to voluntarily cooperate in the implementation of their nationally determined contributions (NDCs) through the transfer of mitigation outcomes (MOs). While negotiators increasingly agree that ITMOs generated from within an NDC must make a corresponding adjustment to prevent double counting, questions remain about how to treat ITMOs generated outside an NDC, which do not contribute to double counting. To encourage countries to reduce emissions from outside their NDCs while both safeguarding and raising climate ambition, this paper discusses potential benefits and risks of pursuing outside-the-NDC transfers and elaborates specific strategies that can be used to mitigate the identified risks. In particular, this paper proposes a so-called “corresponding constraint” approach as an alternative to a corresponding adjustment.
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