Honegger, Matthias; Reiner, David (2017): The political economy of negative emissions technologies. Consequences for international policy design
„n order to understand whether NETs can provide a significant contribution to mitigation, financial incentives are needed that allow implementing the most attractive NET activities at the global scale. We see the market mechanism under Article 6.4 of the Paris Agreement – colloquially called ‘Sustainable Development Mechanism’ – as a possible cornerstone of such a policy instrument. While initially NETs will not be competitive on the free market, the mechanism can facilitate bilateral financial transfers for NETs, where mitigation units accrue to the financier.“