This high­lights a rea­son for dis­agree­ment with Arti­cle 6.4, name­ly that cdM hosts did not have spe­cif­ic Kyoto emis­sion reduc­tion tar­gets, mean­ing that economies can­not be “count­ed twice” towards more than one tar­get. A lack of agree­ment on solv­ing this prob­lem reflects the tech­ni­cal chal­lenges it pos­es and not the polit­i­cal dif­fer­ences on the appro­pri­ate solu­tion, says for­mer co-chair Kizzi­er. Dur­ing COP-25, the par­ties made steady progress on a num­ber of sen­si­tive Arti­cle 6 issues, although they did not reach agree­ment on all issues. The inter­rup­tion of high-lev­el nego­ti­a­tions after the rel­a­tive suc­cess of the tech­ni­cal week clear­ly shows that a defin­i­tive solu­tion to Arti­cle 6 must be found at the polit­i­cal lev­el. Sec­ond, Arti­cle 6.4 pro­vides for the use of the new mech­a­nism to help reduce green­house gas emis­sions and sup­port sus­tain­able devel­op­ment. Unlike direct bilat­er­al coop­er­a­tion, this mech­a­nism is over­seen by an orga­ni­za­tion des­ig­nat­ed by the Con­fer­ence of the Par­ties (COP). The COP will adopt the rules, pro­ce­dures and pro­ce­dures to be fol­lowed when imple­ment­ing the Arti­cle 6.4 mea­sures. The objec­tive is to ensure the stan­dard pro­ce­dures fol­lowed for the design and imple­men­ta­tion of emis­sion reduc­tion mea­sures. The CDM is enshrined in the Kyoto Pro­to­col, which still exists.

The sec­ond com­mit­ment peri­od will run from 2013 to 2020, as agreed in the Doha amend­ment to the 2012 Pro­to­col. But this amend­ment has not yet entered into force: it asks 144 coun­tries to rat­i­fy it, and so far only 138 coun­tries have done so. In the absence of the Doha amend­ment and agree­ment on a pos­si­ble third com­mit­ment peri­od, the reduc­tions in cer­ti­fied emis­sions (i.e. emis­sion cred­its) grant­ed under the CDM are at risk of los­ing val­ue. More­over, the absence of agree­ment on Arti­cle 6 of the Paris Agree­ment means that these emis­sion cred­its can­not be trans­ferred and can retain their val­ue under the new mar­ket mech­a­nisms. Coun­tries must agree on a way to ensure a “total down­turn” in the mar­ket. There is, how­ev­er, dis­agree­ment on the three types of mar­ket (6.2, 6.4 and 6.8) that are deter­mined by this principle.