Dominica has signed a carbon-trading agreement with the Confederation of Switzerland to advance the goals of Article 6 of the Paris Climate Agreement.
According to a release from the Office of the Prime Minister, the agreement was inked by Minister for the Environment, Rural Modernization and Kalinago Upliftment, Hon. Cozier Frederick, at the United Nations Climate Conference (COP 26), in Glasgow Scotland.
Article 6 of the Paris Climate Agreement recognizes voluntary collaborative actions between countries to reduce carbon emissions, as an adaptive response to climate change and the promotion of sustainable development and environmental integrity.
“Article 6 of the Paris Agreement aims at promoting integrated, holistic and balanced approaches that will assist governments in implementing their nationally determined contributions (NDCs)their national GHG emissions reductions targets – NDCs through voluntary international cooperation,” an article on the International Chamber of Commerce (ICC) website sates.
It says that this cooperation mechanism, if properly designed, should make it easier to achieve reduction targets and raise ambition and adds that in particular, Article 6 could also establish a policy foundation for an emissions trading system, which could help lead to a global price on carbon.
“Under this mechanism, countries with low emissions would be allowed to sell their exceeding allowance to larger emitters, with an overall cap of greenhouse gas (GHG) emissions, ensuring their net reduction,” the ICC goes on to explain in the article. “Supply and demand for emissions allowances would lead to the establishment of a global carbon price that would tie the negative externalities of GHG emissions to polluters. In other words, by paying a price on carbon, states exceeding their NDCs would bear the costs of global warming.”
It is expected that through this flexible approach, GHG emissions would undergo a strong decline, coupled with stimulation for innovative and cleaner technologies and an overall transition towards a low-carbon economy.
In addition to being a driver for carbon pricing, it is also being suggested that the successful implementation of Article 6 could create new channels for climate finance and lead to technology transfer and capacity-building.
In this regard, the Dominica government believes that the agreement with Switzerland will facilitate Dominica’s transition to climate resilience and low carbon economic transformation and will include electrification of the island’s transport sector.
The OPM release says that under the agreement, the Government of Dominica will have access to comprehensive financial support to implement projects resulting in measurable carbon reductions. It states that the government has already approved a feasibility study for the National Low carbon Transport Project, being undertaken by Grutter Consultants, a Switzerland-based firm.
“The feasibility analysis will examine the possibility of electric trams for the capital city, Roseau, electric passenger buses, cargo carrying vehicles, electric private cars and nonmotorized vehicles. It will also explore options for pedestrian walkways, green ammonia and green hydrogen for maritime vessels, and appropriate ammonia and hydrogen infrastructure for green maritime transport and export,” the releases states.
According to the OPM release, the government plans to engage stakeholders to identify other appropriate projects for consideration and onward submission to the Swiss Confederation for development assistance.