Article 6 of the Paris Agreement stands out as a pivotal piece in the intricate web of international climate negotiations. COP28 brought forth both triumphs and challenges in the pursuit of climate action. I will first provide an overview of what Article 6 entails— particularly 6.2 and 6.4—and why it stands as a linchpin in global climate cooperation. Then, I will share three key highlights from COP28 related to Article 6. From Ghana’s pioneering efforts in operationalizing Article 6.2 to the collective endeavor to fortify the integrity of carbon markets under Article 6, these highlights illuminate the multifaceted outcomes of Article 6 and its implications for the future of global climate initiatives.

1. What is Article 6 of the Paris Agreement?
2. Consensus not reached at COP28
3. Highlight 1. Operationalizing Article 6.2: Ghana’s Pioneering Path
4. Highlight 2. Efforts to Strengthen Integrity in Carbon Markets Under Article 6
5. Highlight 3. Swedish-UNDP Partnership Launches $28 Million Initiative for Climate Action and Development in Africa
6. Looking Ahead: COP29 in Azerbaijan

What is Article 6 of the Paris Agreement?

In essence, Article 6 is the cooperative backbone of the Paris Agreement. Article 6 is important for fostering global collaboration, promoting economic efficiency, encouraging sustainable development, providing flexibility, incentivizing climate action, and ensuring the integrity of emission reduction efforts. It plays a central role in implementing the Paris Agreement by facilitating international cooperation and supporting countries in their efforts to combat climate change.

Articles 6.2 and 6.4 pertain to mechanisms for international cooperation in achieving emission reduction targets. Article 6.2 establishes a framework for voluntary cooperation between countries by transferring mitigation outcomes, such as emissions reductions. It aims to promote sustainable development and environmental integrity while allowing countries to work together to achieve their climate goals. Article 6.4, on the other hand, addresses the use of market approaches to facilitate the implementation of nationally determined contributions. It outlines principles to avoid double counting and ensures the environmental integrity of activities undertaken by countries. We can think of 6.4 as a globally centralized approach and 6.2 as a bilateral decentralized framework. Articles 6.2 and 6.4 required further rulemaking, but 6.2 is already operational.

One key element of Article 6 is the concept of internationally transferred mitigation outcomes (ITMOs). In a nutshell, ITMOs allow one country to transfer its excess emissions reductions to another, providing flexibility and encouraging collaboration in the global effort to combat climate change. The role of ITMOs is to facilitate cost-effective emission reductions by allowing countries with surplus reductions to transfer them to countries facing challenges in meeting their targets, thereby fostering equitable and efficient climate action.

However, negotiations surrounding the rules and guidelines for Articles 6.2 and 6.4 of the Paris Agreement persist post-COP21 due to the intricacies involved in addressing international cooperation and market mechanisms. The complexities arise from differing national interests, concerns about environmental integrity, economic implications, and the need to balance economic considerations with social and environmental goals. The evolution of climate science and policy, coupled with global changes and events, requires ongoing adaptation. Implementation challenges, including capacity building and technology transfer, contribute to the extended discussions.

Consensus not reached at COP28

As the curtains fell on COP28, the spotlight shifted to the intricacies of Article 6 negotiations. Long nights and passionate debates marked the process. In the end, consensus was not reached for Articles 6.2 and 6.4. However, while Article 6.4 faces a hiatus until negotiations resume next year in Azerbaijan, 6.2 is already being operationalized. Countries like Ghana, Switzerland, and Sweden are forging ahead, signing agreements, and laying the groundwork for international carbon markets. I will share three highlights of COP28 that keep me hopeful despite the lack of agreement on Articles 6.2 and 6.4 in Dubai last month.

“Since carbon markets are already in motion, we must collectively push on with our work to ensure clear signals and consistent international rules that enable carbon markets to play their role.”

– Amy Merrill, ICVCM COO

Highlight 1. Operationalizing Article 6.2: Ghana’s Pioneering Path

Amid setbacks, cooperative approaches under Article 6.2 are making strides. Ghana, in particular, made history by complying with Article 6.2 provisions for a project on climate-smart agriculture. Daniel Benefoh from Ghana’s EPA emphasized the importance of leadership, highlighting Ghana’s journey as a pioneer in implementing Article 6.2. The case of Ghana will certainly prove useful to other countries seeking to operationalize Article 6.2.

“You need stamina. You need a leader to make this work.”

– Dr. Daniel Benefoh, Ghana’s Environmental Protection Agency

This achievement was part of a UNDP-supported initiative focused on promoting climate-smart agriculture practices for sustainable rice cultivation. The submission of an initial report during the conference marked a significant step, setting the stage for subsequent transparency reports and ongoing contributions to the Article 6 database.

Highlight 2. Efforts to Strengthen Integrity in Carbon Markets Under Article 6

At COP28, a concerted effort to fortify the integrity of carbon markets took center stage as influential entities joined forces. The Science Based Targets Initiative, the Voluntary Carbon Markets Integrity Initiative (VCMI), The Integrity Council for the Voluntary Carbon Market (ICVCM), and GHG Protocol collaborated to establish an all-encompassing integrity framework, providing crucial guidance on the utilization of carbon credits for residual emissions.

The ICVCM is actively developing the Core Carbon Principles Assessment Framework (CCP). Serving as a comprehensive rulebook, CCP defines the criteria for a high-integrity carbon credit. Importantly, this framework extends its purview to the rules under Article 6 and positions the 6.4 mechanism as a reference point. At COP28, the CCPs garnered recognition from diverse voices, including governments, regulators, and NGOs. The ongoing dedication of ICVCM to support a high-integrity carbon market through assessments ensures the identification of credible carbon credits, facilitating the unlocking of private climate and carbon finance that might otherwise remain untapped.

Moreover, UNDP made a significant announcement during COP28 by introducing its High Integrity Carbon Market Initiative. This initiative aligns with the overarching goal of bolstering the integrity of carbon markets, particularly those designed under the Paris Agreement and adopted into implementation at COP26 in Glasgow. At a technical level, the focus is on developing core methodologies and removals rules for the 6.4 mechanism and providing additional guidance on cooperative approaches under 6.2. Recognizing that global carbon markets are already in motion, stakeholders emphasized the need for clear signals and consistent international rules to enable these markets to contribute effectively to maintaining the 1.5-degree target.

Highlight 3. Swedish-UNDP Partnership Launches $28 Million Initiative for Climate Action and Development in Africa

In a groundbreaking partnership, the Swedish Energy Agency and the United Nations Development Programme (UNDP) unveiled a $28.2 million initiative named “Climate Ambition Raising Through Article 6 (CARTA).” The project aims to support the reduction of global carbon emissions and enhance poverty reduction efforts in African countries. Aligned with Sweden’s commitment to reduce emissions through investments in Internationally Transferrable Mitigation Outcomes (ITMOs) and consistent with Article 6 of the Paris Agreement, CARTA represents a pioneering collaboration with the dual purpose of reducing emissions and fostering substantial development outcomes.

Ahunna Eziakonwa, UNDP Assistant Administrator and Regional Director for Africa, emphasized the transformative role of Article 6, stating that it could be a game-changer for many African countries—some of which are already taking the lead in Article 6.2 implementation. The initiative focuses on making development projects more bankable and connecting them to private investments, aligning global markets with sustainable development. Eziakonwa stressed that Article 6 is “not just a provision but a promise,” fostering climate actions that propel countries forward, improve access to climate finance, and deliver tangible development outcomes.

Looking Ahead: COP29 in Azerbaijan

As COP28 concludes, the momentum generated by these developments sets the stage for continued collaboration and innovation on the global climate stage. As we anticipate COP29 in Azerbaijan, the lessons learned, and the strides made at COP28 pave the way for collective efforts to unlock the full potential of Article 6 and further advance the global agenda for climate action and sustainable development.

Carbon markets are undeniably already in motion. The pioneering efforts of countries like Ghana and the commitment to high-integrity initiatives underscore the importance of current endeavors that will shape the landscape next year.