Ambition Coefficients - Aligning baselines for international carbon markets with net zero pathways

Global greenhouse gas (GHG) emissions have continued to increase over the last two decades despite all international and national attempts to mitigate climate change. The challenge has increased in the last years due to the shift from the top-down approach of the Kyoto Protocol to the bottom-up approach of the Paris Agreement (PA) where all countries pledge mitigation. However, the Nationally Determined Contributions (NDCs) are specified in many different ways, and for many countries are not really ambitious. In this article our colleagues discuss why emissions intensity baselines do not ensure emissions decrease and how a transition parameter can be defined that reduces uncertainty for potential private investors and is predictable over long periods. The full article is available here.