The Conversation Continues… OMGE! Convincing a Skeptic on “Automatic Cancellation”
Welcome back! ECO’s conversation with an OMGE automatic cancellation skeptic was just too [lengthy][complex][exciting] for one day. Mandatory partial cancellation ensures that Article 6 goes beyond zero-sum offsetting (a principle and requirement under Article 6.4 of the Paris Agreement. Mandatory partial cancellation is a process where buyers (like a country or an airline for compliance under the ICAO CORSIA) buy some mitigation outcomes and a certain percentage of that purchase has to be set aside for the benefit of the atmosphere. What’s left would be used by the buyer to help achieve the target.
So here we go…
ECO: Hi there OMGE automatic cancellation skeptic. How did that discussion on baselines and additionality go? Let’s continue discussing OMGE automatic cancellation. Shall we?
OMGE automatic cancellation skeptic: Yes, I would love to continue our discussion. I’m starting to understand your perspective. But, with this automatic cancellation thing: it just complicates things.
ECO: It is actually very straightforward. We have already been setting credits aside under the CDM for share of proceeds. The logic is comparable. So, we have the necessary experience on how to set this up. In Katowice, countries were in a position to agree on voluntary cancellation for Article 6.4, so this isn’t something new.
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