Dynamic "Ambition coefficient" to make baselines for international carbon markets consistent with long term Paris Agreement targets

The discussion how to make baseline setting for international carbon markets consistent with the long-term ambition of the Paris Agreement is playing an important role in the negotiations about Article 6 rules. We propose using an "ambition coefficient" to be applied to baseline methodologies developed under the Clean Development Mechanism (CDM) under Article 6. The coefficient would decline over time - it starts at 100% and falls to 0 in the year when the host country of the activity needs to attain net zero emissions.