The Paris Agreement’s Article 6 Market Mechanisms and wto Law

Abstract

The article analyses the market-based approaches in Article 6 of the Paris Agreement with respect to their potential interaction with international trade law. It focuses on the international dimension of Article 6 and the tensions associated with international trading of mitigation outcomes (under paragraphs 2–3 of the Article) and emission-reduction units generated through the sustainable development mechanism (paragraphs 4–7). We find that while there are significant normative tensions and legal uncertainties in the relationship between the regimes, international cooperation across the two law- and policy-making arenas could also help to develop new approaches to aligning wto trade law with international climate objectives.