This paper considers the design of market mechanisms under Article 6 of the Paris Agreement and how it can facilitate private financing mobilization and global finance flows towards low-carbon transitions and climate resilience. In addition, the following sub-questions are discussed:
- In the short term (until end of 2019): What rules, modalities, procedures and guidelines are needed in the rulebook for Article 6.2 and Article 6.4 to allow for significant mobilization of private sector finance?
- In the medium (until end of the 2020s) and long term (beyond 2030): What are the incentives for the private sector to participate in Article 6 activities, be it as a (co-) financier, project developer, or buyer of generated ITMOs/credits?
- In the medium and long term: How can Article 6 activities interact with streams of public climate finance?