3. Article 6

What is the main purpose of Article 6 of the Paris Agreement?

• To set individual national emission targets

• To allow countries to trade carbon credits and cooperate internationally to meet emission reduction goals

• To regulate emission levels in a single country only

Answer explanation

Article 6 of the Paris Agreement focuses on international carbon trading systems. It allows for countries to cooperate and trade carbon credits to meet their climate targets. However, its implementation faces challenges, including ensuring environmental integrity and addressing social impacts.

What does the "Tragedy of the Commons" describe?

• Shared resources used efficiently by everyone

• A situation where a few countries have access to all resources

• Overuse of shared resources, leading to degradation that harms all users

Answer explanation

This concept refers to the overuse of shared resources (like the atmosphere). When resources are used beyond their capacity, it leads to degradation that harms everyone.

What is the "Social Cost of Carbon"?

• The environmental damage caused by each ton of carbon dioxide emitted

• The cost of carbon trading systems

• The cost of cleaning up carbon emissions from the atmosphere

Answer explanation

The Social Cost of Carbon refers to the broader economic and environmental damages associated with each unit of carbon emissions.

Why are carbon markets important for climate action?

• They help reduce emissions by allowing trading of carbon credits globally, providing cost savings for further climate initiatives

• They are only relevant for large companies

• They focus only on reducing emissions in developed countries

Answer explanation

Carbon markets facilitate emissions reductions across countries and sectors, helping to drive down global emissions cost-effectively.

What role do governments play in developing carbon markets?

• They only monitor carbon credits

• They fund private companies to reduce emissions

• They create comprehensive strategies for carbon financing, ensuring coordination across sectors and considering impacts on society

Answer explanation

Governments need to develop clear frameworks for carbon markets, including regulations for compliance, carbon pricing, and emissions reduction activities.

Which of the following statements are true?

• We are falling dangerously short of our climate targets.

• Carbon markets can be an effective tool to channel finance where it's most impactful, but should not be seen as the only one.

• The private sector plays a key role in driving action towards our common climate targets, but needs clear rules and regulations.

• Governments should develop holistic regulatory frameworks for carbon markets, including compliance ETS, VCM, and Article 6.

• Young climate advocates should support high-integrity cooperation and scrutinize low-integrity approaches to facilitate the delivery of climate targets.