Opportunities for mobilizing private climate finance through Article 6

Together with Climate Focus and Frankfurt School of Finance & Management, Perspectives has analyzed how Article 6 market mechanisms can be designed to incentivize mobilization of private financing and to reorient global finance flows towards low-carbon development and climate resilience in line with Article 2.1c of the Paris Agreement. On the international level, private and public sector trust in Article 6 mechanisms must be enhanced through keeping transaction low while robustly safeguarding integrity. On the national level, mitigation policy instruments should incentivize demand for emission reduction units, while higher-cost private sector mitigation should be mobilized through effective blending of ITMO revenues with public climate finance.