Robust Accounting Under Article 6: Key to the Integrity of the Paris Agreement

Key messages and recommendations - A robust accounting system for Article 6 transactions will be key to the environmental integrity of the Paris Agreement. Article 6 transactions, if not properly accounted for, would provide a misleading picture of global efforts to meet the goal of carbon neutrality. Double counting (including double issuance and double claiming) are key issues. The accounting system must provide for clear identification of that risk, through the application of Corresponding Adjustments (CAs). Reaching an agreement under Article 6 may unlock significant amounts of carbon finance but will depend on the quality of the negotiation outcome. A poor outcome may lead to significant under-utilization of Article 6, and undermine the viability of the Paris Agreement altogether if the risk of double counting is not properly addressed.