April 23, 2021 — LONDON:
The 2% would cover administrative expenses and assist developing countries that are “particularly vulnerable to the adverse effects of climate change to meet the cost of adaptation measures,” according to statement on UNFCCC website.
It would allow adaptation to benefit from rising carbon prices.
Key bit:
The 2 percentage of credits under both Article 6.2 and 6.4 can be applied as follows:
i. Under Article 6.2 the 2 percentage of Article 6.2 ITMOs shall be levied at the transfer and charged to the acquiring party.
ii. Under Article 6.4 the 2 percentage of Article 6.4 ERs shall be levied at issuance.
