Axel Michaelowa and Benito Müller discuss in this recently published Climate Policy article how accounting can be operationalized in the Article 6 mechanisms of the Paris Agreement. In particular, they explore options for applying corresponding adjustments when emission reductions are transferred from sectors not covered by targets under the host country’s NDC, a key issue that could not be resolved in UNFCCC negotiations so far. The authors differentiate between accounting for emission targets under a country’s NDC and measured emission levels. For emission reductions outside of a country’s NDC, corresponding adjustments should be done to the measured emission levels. The transfer of emission reduction credits generated outside an NDC should lead to a corresponding adjustment of a buffer registry of the selling country, but not its emissions level/NDC target. Such credits should only be generated if additionality of the reductions is shown.
You can find the journal article here.