Introduction
Framework and Significance of Article 6
The adoption of key Article 6 rules and guidance at COP26 in Glasgow marked an important milestone for international carbon markets. After extensive negotiations, Parties agreed on a framework for "internationally transferred mitigation outcomes" (ITMOs) under Article 6.2 and the functioning of the new centralized crediting mechanism managed by the United Nations under Article 6.4. Carbon markets under Article 6 build on the foundation and experience from the Kyoto Protocol while raising the thresholds for transparency and accountability. Article 6.2 allows mitigation outcomes in one Party to be transferred and used toward the climate target of another Party or for other international mitigation purposes (OIMPs). Article 6.4 builds on a centralized framework and methodologies allowing the host Parties to implement mitigation activities and enable issuance of emission reductions from those activities which can be used for both under the context of Article 6.2 and also any other purposes, including domestic objectives.
Challenges to Coordinating and Implementing Article 6
While some Parties have taken steps in forming bilateral agreements and establishing Designated National Authorities (DNAs) under Article 6.4, overall readiness and understanding on the key fundamental implementation aspects of authorization, tracking and reporting remain limited. Findings from the Article 6 Implementation Status Report (A6ISR) survey and capacity-building assessments highlight a significant need for clear policy frameworks and regulatory guidance to navigate evolving requirements. Moreover targeted technical capacity building and assistance is needed to support countries in navigating through the complexities of Article 6. Many Parties face institutional challenges in coordinating across government agencies and engaging the private sector effectively, both essential for developing robust and sound Article 6 frameworks. This underscores the importance of addressing these gaps through comprehensive tailored capacity-building initiatives to enable Parties to meet their climate commitments with transparency, efficiency, and compliance with international standards.
Paris Agreement Article 6 Implementation Partnership (A6IP) Center
The Ministry of the Environment, Japan, launched the Paris Agreement Article 6 Implementation Partnership (A6IP) Center during COP27 to address Article 6 implementation challenges and promote international collaboration for capacity building related to Article 6, including by sharing good practices and supporting the implementation of Article 6. The A6IP Center, established at the Institute for Global Environmental Strategies (IGES) following the 2023 Sapporo Ministers' Meeting on Climate, Energy, and the Environment, provides the A6IP secretariat services. A6IP works with more than 81 partner countries and a 100 partner organizations in promoting institutional and technical capacity development by providing guidance on authorization, reporting, and tracking to achieve best practices and enhance global collaboration.
The Article 6 Global Support Package
The Article 6 Global Support Package offered by the Paris Agreement Article 6 Implementation Partnership (A6IP) Center is tailored to the A6IP partner countries needs and was created around six thematic areas to promote effective Article 6 implementation, namely Article 6 strategy, authorization, reporting, tracking, project initiation, and methodology development. Article 6 strategy support promotes partner countries' understanding on the use of Article 6, ensuring alignment with the NDC and long-term climate goals. Authorization support assists partner countries in formulating and implementing authorization arrangements, including key considerations to ensure high integrity and sustainable development objectives. Reporting support builds partner country readiness to develop and submit relevant Article 6 reports in a timely manner, ensuring compliance with Article 6 timelines and integrating corresponding emissions adjustments with Article 13 transparency reporting. Tracking support aims to facilitate partner countries' development or access to tracking infrastructures i.e. registry systems to record necessary information relating to internationally transferred mitigation outcomes (ITMOs). Project initiation support assists partner countries in exploring potential mitigation areas and working with the private sector to develop a pipeline of Article 6 mitigation activities. Methodology development support provides technical assistance to partner countries to develop and assess methodologies for use in Article 6 implementation. Together, these six thematic areas equip partner countries to implement Article 6 mechanisms effectively, supporting them in meeting their climate commitments consistently and clearly. A6IP support empowers partner countries starting from any level of readiness to implement Article 6 mechanisms in a timely manner to fulfill their climate commitments.
Article 6 Implementation Status Report (A6ISR)
The Article 6 Implementation Status Report (A6ISR) aims to present a snapshot of the global progress made by Parties to the Paris Agreement (subsequently in this report referred to as "Parties") in implementing Article 6 of the Paris Agreement. The report offers a global assessment of Article 6 readiness, focusing on the strategies, challenges, and capacity-building efforts required for effective participation in global carbon markets. Drawing on data from Paris Agreement Article 6 Implementation Partnership (A6IP) Center internal consultations, desk research, partner countries, A6IP surveys, partner organizations, A6IP factsheets, and A6IP databases, the report provides decision-makers with actionable insights regarding global readiness of both acquiring and host Parties to engage with Article 6 mechanisms.
In addition to a thorough analysis of Article 6 and voluntary carbon market activities, the report emphasizes the need for international cooperation and technical support to propel implementation forward. Its objectives include presenting an overview of Article 6 readiness in about 90 Parties and detailing policy frameworks, institutional arrangements, and legal structures, as listed below:
The adoption of key Article 6 rules and guidance at COP26 in Glasgow marked an important milestone for international carbon markets. After extensive negotiations, Parties agreed on a framework for "internationally transferred mitigation outcomes" (ITMOs) under Article 6.2 and the functioning of the new centralized crediting mechanism managed by the United Nations under Article 6.4. Carbon markets under Article 6 build on the foundation and experience from the Kyoto Protocol while raising the thresholds for transparency and accountability. Article 6.2 allows mitigation outcomes in one Party to be transferred and used toward the climate target of another Party or for other international mitigation purposes (OIMPs). Article 6.4 builds on a centralized framework and methodologies allowing the host Parties to implement mitigation activities and enable issuance of emission reductions from those activities which can be used for both under the context of Article 6.2 and also any other purposes, including domestic objectives.
Challenges to Coordinating and Implementing Article 6
While some Parties have taken steps in forming bilateral agreements and establishing Designated National Authorities (DNAs) under Article 6.4, overall readiness and understanding on the key fundamental implementation aspects of authorization, tracking and reporting remain limited. Findings from the Article 6 Implementation Status Report (A6ISR) survey and capacity-building assessments highlight a significant need for clear policy frameworks and regulatory guidance to navigate evolving requirements. Moreover targeted technical capacity building and assistance is needed to support countries in navigating through the complexities of Article 6. Many Parties face institutional challenges in coordinating across government agencies and engaging the private sector effectively, both essential for developing robust and sound Article 6 frameworks. This underscores the importance of addressing these gaps through comprehensive tailored capacity-building initiatives to enable Parties to meet their climate commitments with transparency, efficiency, and compliance with international standards.
Paris Agreement Article 6 Implementation Partnership (A6IP) Center
The Ministry of the Environment, Japan, launched the Paris Agreement Article 6 Implementation Partnership (A6IP) Center during COP27 to address Article 6 implementation challenges and promote international collaboration for capacity building related to Article 6, including by sharing good practices and supporting the implementation of Article 6. The A6IP Center, established at the Institute for Global Environmental Strategies (IGES) following the 2023 Sapporo Ministers' Meeting on Climate, Energy, and the Environment, provides the A6IP secretariat services. A6IP works with more than 81 partner countries and a 100 partner organizations in promoting institutional and technical capacity development by providing guidance on authorization, reporting, and tracking to achieve best practices and enhance global collaboration.
The Article 6 Global Support Package
The Article 6 Global Support Package offered by the Paris Agreement Article 6 Implementation Partnership (A6IP) Center is tailored to the A6IP partner countries needs and was created around six thematic areas to promote effective Article 6 implementation, namely Article 6 strategy, authorization, reporting, tracking, project initiation, and methodology development. Article 6 strategy support promotes partner countries' understanding on the use of Article 6, ensuring alignment with the NDC and long-term climate goals. Authorization support assists partner countries in formulating and implementing authorization arrangements, including key considerations to ensure high integrity and sustainable development objectives. Reporting support builds partner country readiness to develop and submit relevant Article 6 reports in a timely manner, ensuring compliance with Article 6 timelines and integrating corresponding emissions adjustments with Article 13 transparency reporting. Tracking support aims to facilitate partner countries' development or access to tracking infrastructures i.e. registry systems to record necessary information relating to internationally transferred mitigation outcomes (ITMOs). Project initiation support assists partner countries in exploring potential mitigation areas and working with the private sector to develop a pipeline of Article 6 mitigation activities. Methodology development support provides technical assistance to partner countries to develop and assess methodologies for use in Article 6 implementation. Together, these six thematic areas equip partner countries to implement Article 6 mechanisms effectively, supporting them in meeting their climate commitments consistently and clearly. A6IP support empowers partner countries starting from any level of readiness to implement Article 6 mechanisms in a timely manner to fulfill their climate commitments.
Article 6 Implementation Status Report (A6ISR)
The Article 6 Implementation Status Report (A6ISR) aims to present a snapshot of the global progress made by Parties to the Paris Agreement (subsequently in this report referred to as "Parties") in implementing Article 6 of the Paris Agreement. The report offers a global assessment of Article 6 readiness, focusing on the strategies, challenges, and capacity-building efforts required for effective participation in global carbon markets. Drawing on data from Paris Agreement Article 6 Implementation Partnership (A6IP) Center internal consultations, desk research, partner countries, A6IP surveys, partner organizations, A6IP factsheets, and A6IP databases, the report provides decision-makers with actionable insights regarding global readiness of both acquiring and host Parties to engage with Article 6 mechanisms.
In addition to a thorough analysis of Article 6 and voluntary carbon market activities, the report emphasizes the need for international cooperation and technical support to propel implementation forward. Its objectives include presenting an overview of Article 6 readiness in about 90 Parties and detailing policy frameworks, institutional arrangements, and legal structures, as listed below:
- Providing a comprehensive analysis of voluntary carbon market activities and their role in Article 6 implementation using the data compiled by the A6IP Center and its partners.
- Guiding decision-makers on leveraging Article 6 to enhance national climate ambitions and deliver sustainable development benefits.
- Providing trend analysis to support researchers and stakeholders with insights into nascent challenges and opportunities presented in implementing Article 6.
- Promoting the collaborative efforts of A6IP Center and its partners, emphasizing their role in providing capacity-building and technical support to participating Parties.
