chapter  15
10 Pages

The role of carbon pricing in the Paris Agreement

Withİzzet Arı, Ramazan Sarı

The United Nations Framework Convention on Climate Change, the Kyoto Protocol, and the Paris Agreement encourage using market-based instruments. As a market-based instrument, carbon pricing such as carbon taxes and carbon trading ensures cost-effective emissions mitigation. Article 6 of the Paris Agreement promotes global carbon pricing and provides new opportunities to involve all countries’ emissions reduction in line with their Nationally Determined Contributions. This study analyzes Article 6 of the Agreement and negotiations on rules, procedures, and modalities about new global carbon pricing for reducing emissions and creating new financial resources.