Climate Article 6 can make or break carbon markets at COP29. Here’s all you need to know.

The document details the operational and structural differences between Article 6.2 (bilateral/multilateral agreements), Article 6.4 (a UN-overseen global carbon market), and Article 6.8 (non-market approaches). It highlights the role of 'corresponding adjustments' in preventing double-counting and the specific financial contributions required under Article 6.4, such as the Share of Proceeds for the Adaptation Fund and the Overall Mitigation of Global Emissions. The author emphasizes that establishing high standards for credit quality and transparency is essential for the success of these markets at COP29.

• Article 6.2 allows countries and private entities to trade Internationally Transferrable Mitigation Outcomes (ITMOs) through bilateral or multilateral agreements, where participating parties design their own policies and quality requirements. While operational, some elements like the Article 6.2 international registry and specific reporting requirements remain under negotiation.
• Article 6.4 creates a UN-governed global carbon market managed by a 12-member Supervisory Body that approves methodologies and registers projects. Credits issued under this mechanism (A6.4ERs) are subject to a 5% volume-based Share of Proceeds (SOP) for the Adaptation Fund and a 2% automatic cancellation for Overall Mitigation of Global Emissions (OMGE) to ensure a net global emissions drawdown.
• To prevent double-counting of emissions reductions, both ITMOs and A6.4ERs require a 'corresponding adjustment,' where the host country deducts the reduction from its own accounting so the buyer can count it toward their Nationally Determined Contribution (NDC). Credits not authorized for NDC goals are termed 'mitigation contributions' and do not require this adjustment.
• Article 6.8 provides a non-market framework via a centralized platform where countries can request and receive financial or technical support for mitigation projects without the exchange of carbon credits.
• Recent implementation milestones include Ghana becoming the first country to authorize ITMO exports at COP27, a binding agreement between Singapore and Papua New Guinea at COP28, and the first completed ITMO transfer between Switzerland and Thailand in 2024.

APA

Fallon, K., & Jee, Z. (2024). Climate Article 6 can make or break carbon markets at COP29. Here’s all you need to know. Clean Air Task Force. https://www.catf.us/2024/10/article-6-make-break-carbon-markets-cop29-heres-all-you-need-know/

Chicago

Fallon, Kathy, and Zoe Jee. Climate Article 6 can make or break carbon markets at COP29. Here’s all you need to know. Clean Air Task Force, 2024. https://www.catf.us/2024/10/article-6-make-break-carbon-markets-cop29-heres-all-you-need-know/.

Wikipedia

{{cite report |last1=Fallon |first1=Kathy |last2=Jee |first2=Zoe |title=Climate Article 6 can make or break carbon markets at COP29. Here’s all you need to know. |publisher=Clean Air Task Force |date=29 October 2024 |url=https://www.catf.us/2024/10/article-6-make-break-carbon-markets-cop29-heres-all-you-need-know/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fallon2024climate, author = {Fallon, Kathy and Jee, Zoe}, title = {{Climate Article 6 can make or break carbon markets at COP29. Here’s all you need to know.}}, institution = {Clean Air Task Force}, year = {2024}, month = oct, url = {https://www.catf.us/2024/10/article-6-make-break-carbon-markets-cop29-heres-all-you-need-know/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }