Article 6.2 Implementation for High Integrity: Updates, Lessons and Challenges

The implementation of a cooperative approach under Article 6.2 of the Paris Agreement, which enables countries to exchange emission reductions and removals through bilateral agreements, is gaining momentum. This event provided an overview of the various governments and institutions implementing Article 6.2 activities, how to ensure its high-integrity, and challenges and lessons learned thus far.

In opening remarks, Yutaka Matsuzawa, Vice-Minister for Global Environmental Affairs, Ministry of the Environment, Japan (MOEJ), highlighted the pivotal role played by Article 6.2 in encouraging countries to address climate challenges while leveraging their strengths through cooperative efforts with other governments and institutions. He shared MOEJ’s work in launching the Paris Agreement Article 6 Implementation Partnership (A6IP), lessons learned, and examples of successful partnerships over the years.

Nami Kasahara, Global Environment Centre Foundation (GEC), hosted the event and moderated the first session on the overview of Article 6 rules and implementation between COP 28 and COP 29.

For the first session, Supanut Chotevitayatarakorn, A6IP, discussed key findings from the A6IP’s Implementation Status Report, which will be launched on 18 November at COP 29. He shared several challenges and barriers to A6IP’s implementation of Article 6, which includes a lack of general understanding of Article 6 and of policy frameworks or strategies on Article 6 implementation. For successful implementation of Article 6, he cited the need for increased capacity-building efforts, inclusive participation in the process, and further engagement of the private sector.

Simon Fellermeyer, Federal Office for the Environment (FOEN), Switzerland, shared key lessons from Switzerland’s experience with Article 6 implementation, highlighting its complexity and the considerable time it takes to implement projects given the involvement of many actors, including governments and the private sector. He also noted that further rules continue to be developed on Article 6 implementation and “no one tells you what the standard is.” Regarding developments at COP 28 and COP 29, he acknowledged ongoing challenges surrounding questions about Article 6 implementation. However, he expressed optimism, noting that the approval of Article 6.4 standards and methodologies at COP 29 marks a positive step forward. This progress provides greater clarity for countries and fosters innovative approaches to implementing Article 6.

Vicky Janssens, Foundation for Climate Protection and Carbon Offset (KliK),discussed the KliK Foundation’s work with the Swiss government, primarily on mitigation projects, noting that most mitigation activities being developed and implemented by the KliK Foundation are in Ghana. She said the Foundation’s other projects include: e-buses and e-taxis, green cooling, solar PV programs, waste management, improved cooking solutions, and biogas.

Hiroshi Ono, Executive Director, Institute for Global Environmental Strategies (IGES), moderated the second session on ongoing work towards high-integrity of carbon markets. His questions for the panelists focused on: the selection and prioritization of high-integrity activities under Article 6.2 and key considerations of the government to ensure high-integrity activity implementation; and the methods by which the private sector can ensure high-integrity implementation of Article 6.2 activities.

Paweena Panichayapichet, Thailand Greenhouse Gas Management Organization (TGO), discussed how Thailand created a government agency to oversee and manageimplementation of Article 6.2 to ensure activities are aligned with Thailand’s Nationally Determined Contribution (NDC). She highlighted the establishment of Thailand’s Carbon Credit Management Guidance and Mechanism to ensure the high-integrity implementation of Article 6.2 activities. Key principles include: avoidance of double counting; alignment with the Sustainable Development Goals (SDGs); environmental integrity; and generation of economic benefits to the country from investments in mitigation technologies.

Madeleine Diouf Sarr, Ministry of Environment and Sustainable Development, Senegal, shared that Senegal created a Climate Commission to ensure high-integrity implementation of Article 6 activities, which works with different government committees and agencies to review and oversee the whole process of Article 6 implementation from planning and provision of technical advice to implementation. She cited examples of Senegal’s projects, which include: biogas, waste management, e-taxis, and eco solar cars.

Gregor Sahler, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, stressed the importance of ensuring that sustainable development benefits of Article 6.2 activities reach affected communities. He noted the complexity of carbon markets and the challenges of implementing them, which include: lack of a government strategy, high upfront costs, technology financing, and lack of capacity.

Janssens then stated that the KliK Foundation’s partners must follow standards from different directions, including the requirements of the Swiss government and national frameworks of host countries. She said this makes it necessary to specifically define eligibility criteria and conduct stakeholder consultations. Some of the key criteria that must be met, she added, include: activity alignment with the country’s NDC; strong additionality; long-term financial viability; real and quantifiable emission reductions; no adverse environmental impact; and significant contribution to the SDGs.

Juliana Bempah, Carbon Market Office, Ghana, discussed Ghana’s experience with Article 6.2 implementation, citing their partnership with Switzerland as the first example of Ghana’s bilateral agreement. She shared Ghana’s work on clean cooking, compost projects, rice cultivation, and biomass. She also note that Ghana has set up a Carbon Market Office to oversee and support implementation of the country’s international carbon market and non-market approaches framework, creating a transparent and robust institution.

In the Q&A session, one participant asked how countries dealt with the pushback on implementation of Article 6.2 activities. Panichayapichet stated that Thailand has an agency responsible for reviewing any proposed activity and ensuring that it is aligned with the country’s NDC. Diouf Sarr stressed the need to incentivize communities and to ensure that social and environmental aspects are considered and addressed.

In his closing remarks, Felix Wertli, Ambassador for the Environment, FOEN, Switzerland, stressed that Article 6 implementation is not possible without cooperation. Although challenges, remain, as underscored by the panelists, he noted that the public and government working together can address them. He emphasized the need for political will to reach a compromise, as delivering at COP 29 will send a positive signal to the markets.

Organizers:  A6IP Center, IGES, GEC, MOENV, FOEN, and KliK Foundation

Contact: Hayato Nakamura | hayato.nakamura@iges.or.jp

Website: https://www.iges.or.jp/