Finance, Transparency And Compliance – Key Features Of The Paris Agreement (Part Two)

Article 6

This part of the Agreement establishes a "mechanism to contribute to the mitigation of greenhouse gas emissions and support sustainable development", a device to support implementation through both market and non-market instruments; the latter reflecting an aversion of a number of Parties to market mechanisms such as carbon trading. There is little indication as to the shape the mechanism will take beyond that it is intended to be "income-generating" and "self-financing". Whilst this is encouraging given limited resources, a question remains as to the usefulness of yet another "mechanism" under the Convention supervised by yet another "body designated by the COP" given the convoluted plethora of "bodies", "mechanisms", "working groups" and financial mechanisms in the ever-growing spider's web of the UNFCCC. There is perhaps a danger of more and more overlapping functions, more and more meetings, more and more liaison without necessarily a lot more action. The other apparent weakness with the new mechanism is the lack of common understanding as to precisely what "sustainable development" is, which could hinder the effectiveness of the mechanism in meeting its stated objectives.

Article 7

Article 7 sets out the Parties objectives and obligations on adaptation. In the pre-COP negotiations, there were strenuous calls for adaptation to be given enhanced importance and placed on an equal footing with mitigation. Given that less robust language has been selected for the Article 7 provisions than for Article 4, it is far from clear that this objective has been achieved.

One similarity with Article 4 is that adaptation also now benefits from a "global goal" - another top "ask" of many developing country parties. Unlike its counterpart, however, it is both non-quantified and non-qualitative, being to "enhance adaptive capacity, strengthen resilience and reduce vulnerability to climate change". As a goal whose realisation will be difficult to measure and evaluate, its purpose is largely symbolic, as is the official recognition that will be afforded to the adaptation efforts of developing country parties; a key component of their "participation" in the global climate change effort.

The language deployed in Article 7 is noticeably less robust than elsewhere in the Agreement, with one of the main provisions worded as follows:

"Parties should, as appropriate, submit and update periodically an adaptation communication which may include its priorities, implementation and support needs, plans and actions without creating additional burden for developing country parties".

The use of "should" rather than "shall", together with the inclusion of "as appropriate" creates more of a voluntary, opt-in provision relating to adaptation efforts which appears to conflict with the mandatory requirement in Article 3 for all Parties to produce and make adaptation efforts under an NDC. It is therefore unclear how Articles 7 and 3 fit together. Further confusion follows in subsection 10 which states that:

"The adaptation communication ... shall be, as appropriate, submitted and updated periodically, as a component of or in conjunction with other communications or document, including an National Adaptation Plan, Nationally Determined Contribution or national communication".

Contrast the "should submit and update periodically an adaptation communication" with the requirement that the adaptation communication "shall" be submitted and updated periodically as a component of or in conjunction with other communications or documents". The level of "binding force" behind the adaptation provision is therefore unclear, particularly given the ambiguity in the words "as appropriate", which suggests that Parties are free to determine that it is not "appropriate" for them to contribute an adaptation communication.

Article 8

Relating to loss and damage, this is...

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