There are strong differences of opinion on how OMGE should be guaranteed in practice. The three separate mechanisms – in accordance with Articles 6.2, 6.4 and 6.8 – were all part of the Paris Agreement, in recognition of the competing interests and priorities between the contracting parties to the agreement. These differences remain and need to be reviewed if the section 6 regulatory framework is to be adopted. If the CDM were to continue to operate without a political decision after 2020, “we are not only sacrificing leverage to improve the CDM, we are losing a significant incentive for an agreement on [carbon markets],” she said. Therefore, there is disagreement as to whether – and if so, how – the many methods to stem the Kyoto era, projects and emission credits should be included in the Article 6.4 market. The graph also shows how the draft texts of Article 6 seem to have receded after discussions in Bonn in June 2019 (right column in the graph). The draft legislation of Article 6.2, Article 6.4 and Article 6.8 includes, on the one hand, 41 pages containing 672 brackets. At the international climate summit in Madrid in December 2019, climate negotiators will once again attempt to finalize the Article 6 “regulatory framework” that will govern voluntary international cooperation on climate change issues, including carbon markets. In order to truly understand the task entrusted to them and the main areas of disagreement that remain, the first point of contact is the text of Article 6 of the Paris Agreement itself, presented in annotated form in the graph below. The EU has a national emissions reduction target and currently does not intend to continue using international credit to meet the EU ETS after 2020. The EU ETS Directive provides for the introduction of use restrictions as part of the appropriations application arrangements, which are also usable during phase 3 of the EU ETS.
While the legislation allows for the introduction of new usage restrictions, the European Commission is not currently considering additional restrictions on the use of Phase 3. However, the EU`s internal target for 2030 does not currently plan to continue the use of international credits after 2020. Decisions of the CDM Board of Directors may be blocked if at least three members of the Board of Directors oppose them. If no agreement is reached during this session, the matter will be postponed to a meeting to be held from 1 to 14 December. COP25 has already been the subject of many tragedies after the Chilean summit was briefly cancelled after massive riots in the host city of Santiago, before being hastily transferred to the Spanish capital. Although Article 6.7 stipulates that the annual COP adopts rules, modalities and procedures for the carbon market in accordance with Article 6.4, there is disagreement over the extent of national control over its activities and the UN supervisory body signs each draft or methodology.