FAQ: Everything you need to know about Article 6 at COP28

The document provides a detailed overview of Article 6 of the Paris Agreement, distinguishing between the bilateral/multilateral trading of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 and the UN-supervised global carbon market under Article 6.4. It highlights critical concerns regarding double counting, the lack of oversight in Article 6.2, the risks associated with transitioning legacy Clean Development Mechanism (CDM) projects, and the potential for 'emissions avoidance' to undermine environmental integrity. The guide outlines key priorities for COP28, including the need for stricter reporting rules, a code of conduct for confidentiality, and the establishment of independent grievance processes.

• Article 6.2 allows for the trade of Internationally Transferred Mitigation Outcomes (ITMOs) via bilateral or multilateral agreements, but it lacks an independent oversight body, leaving countries to self-define "environmental integrity" and social safeguards.
• Article 6.4 establishes a UN-supervised global carbon market where projects must be approved by both the host country and the Article 6.4 Supervisory Body (6.4SB) before issuing A6.4ERs; however, these credits are unlikely to be traded until 2025 at the earliest.
• While "corresponding adjustments" are used to prevent double counting in official systems, double counting remains a risk for voluntary credits purchased by private companies and within the CORSIA aviation offsetting scheme due to the use of "averaging" approaches for countries without intermediate NDC target dates.
• The transition of Clean Development Mechanism (CDM) projects to the Article 6.4 mechanism could potentially result in the issuance of up to 2.8 billion credits based on outdated and flawed methodologies until December 31, 2025.
• The document argues that "emissions avoidance" should be excluded from eligibility for carbon credits because the term is poorly defined and could allow for the issuance of environmentally worthless "hot air credits" on a scale of gigatonnes.
• At COP28, critical points of negotiation include the definition of "material" versus "immaterial" reporting inconsistencies, the creation of a code of conduct to limit the use of "confidentiality" loopholes in Article 6.2, and the adoption of recommendations on removal activities and methodological requirements for Article 6.4.

APA

Crook, J. (2023). FAQ: Everything you need to know about Article 6 at COP28. Carbon Market Watch. https://carbonmarketwatch.org/2023/11/24/faq-everything-you-need-to-know-about-article-6-at-cop28/

Chicago

Crook, Jonathan. FAQ: Everything you need to know about Article 6 at COP28. Carbon Market Watch, 2023. https://carbonmarketwatch.org/2023/11/24/faq-everything-you-need-to-know-about-article-6-at-cop28/.

Wikipedia

{{cite report |last1=Crook |first1=Jonathan |title=FAQ: Everything you need to know about Article 6 at COP28 |publisher=Carbon Market Watch |date=24 November 2023 |url=https://carbonmarketwatch.org/2023/11/24/faq-everything-you-need-to-know-about-article-6-at-cop28/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{crook2023faq, author = {Crook, Jonathan}, title = {{FAQ: Everything you need to know about Article 6 at COP28}}, institution = {Carbon Market Watch}, year = {2023}, month = nov, url = {https://carbonmarketwatch.org/2023/11/24/faq-everything-you-need-to-know-about-article-6-at-cop28/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }