Swiss article 6 agreements 'set poor precedent'

The agreements signed between Switzerland and a number of developing countries set a "poor precedent" for ambition ahead of this week's UN Cop 26 climate conference, think-tank New Climate Initiative says.

New Climate Initiative says Switzerland's bilateral agreements under article 6 of the Paris climate agreement focus on "low-hanging fruit", making it impossible for the partner countries to make use of the easier options for their nationally determined contributions (NDCs) to the Paris deal.

Switzerland has signed agreements with Peru, Ghana, Senegal and Georgia, as well as Vanuatu and Dominica.

Under the agreement with Georgia, for instance, signed last month, Switzerland's environment ministry said it will help develop a national support programme for energy efficiency in the buildings sector.

But the renovation of public buildings remains one of the most accessible mitigation options in Georgia, New Climate Initiative says.

The think-tank says that under the Paris climate agreement, there should be a shift away from low-hanging fruit, the main target for market mechanisms under the Kyoto protocol.

The think-tank warns that if other rich nations follow suit, it will lead to poorer countries running out of "accessible avenues to deliver climate action".

Switzerland should instead step up its fair share of international climate finance contributions, New Climate Initiative says.

And generally speaking, rich countries should ensure that "they have their own house in order" before reaching for international market mechanisms, the think-tank says. Switzerland aims to halve its greenhouse gas (GHG) emissions by 2030 compared with 1990 levels, with domestic mitigation measures accounting for 75pc, according to the latest draft legislation.

Swiss agreements 'important laboratories'

The Swiss ministry has rejected the accusations. A ministry spokesman told Argus that the agreements do not target low-hanging fruit, but on the contrary "the agreements ensure that only those climate protection projects will be carried out, which the partner country would not have carried out on its own".

And strict "additionality" criteria apply, so Switzerland may only take into account the emissions reductions that would not have been achieved without the financing through the acquisition of emissions certificates.

The bilateral agreements allow the partner countries to channel the investments in those projects that best meet local requirements, the ministry says.

And the agreements do not specify in advance the project types or sectors where the investments will go, but merely set the framework, the ministry says. Every project needs the green light from both countries, the ministry stresses.

The agreements set strict standards not just for the environment, but for the first time also for human rights, the ministry says. The standards also preclude double counting, i.e. allowing Switzerland and the partner country to take the credit for the same emissions reduction.

The projects will be continuously evaluated by independent bodies, the ministry said. Should the projects fall short of the agreed standards, Switzerland would immediately stop the recognition of the certificates.

Perspectives Climate Group senior founding partner Axel Michaelowa told Argus that the various bilateral pilot agreements signed by Switzerland are "important laboratories for the future of market mechanisms". Michaelowa said Switzerland has committed itself to high standards of environmental integrity regarding the issue of additionality and benchmarks.

Michaelowa seconds the Swiss environment ministry on the issue of low-hanging fruit, pointing out that the bilateral agreements signed by Switzerland do not contain any certificate prices or transfer volumes, but merely provide a framework for transactions that will be negotiated separately.

By Chloe Jardine