The Carbon Market Mechanisms
Working Group
Overview
The Carbon Market Mechanisms Working Group (CMM-WG) is chaired by Perspectives Climate Research gGmbH and is funded and coordinated in close collaboration with the German Federal Ministry for Economic Affairs and Climate Action (BMWK). In Phase I (2019-2022), a steady exchange of ideas and experiences between stakeholders was successfully facilitated regarding technical aspects concerning the piloting and rulemaking of market-based cooperation under Article 6 of the Paris Agreement. This included events and meetings at the Innovate4 Climate (I4C), Regional Climate Weeks, and sessions of the Subsidiary Bodies and the Conferences of the Parties (COPs).
Building upon Phase I, Phase II (2022-2024) focuses on strengthening the expert dialogue on technical aspects of regulating and implementing market-based cooperation under the Paris Agreement (Articles 6.2 and 6.4), including for compliance, offsetting, and climate finance purposes. The emphasis lies on programmatic and upscaled crediting approaches. The aim is to facilitate a continuous dialogue among key carbon market stakeholders on ambitious, high-integrity approaches to operationalise, improve and scale up carbon market instruments.
Background and objective
In designing international market-based cooperation as set out in Articles 6.2 and 6.4 of the Paris Agreement, the Parties ought to consider the experience gained to date under the Kyoto Protocol (e.g., under the Clean Development Mechanism), build on successful models and operationalise the new rules in a stringent manner. To this end, the BMWK supports the CMM-WG, established at the I4C in Singapore in June 2019.
The CMM-WG provides a platform for dialogue, enabling the exchange of experiences and coordination of activities to support the role of programmatic and upscaled activities financed through international market-based cooperation or results-based climate finance. The CMM-WG conducts regular meetings and workshops attended by technical experts and stakeholders to share experiences, challenges, and success stories of their activities. In addition, background papers on technical aspects of the ongoing operationalisation and implementation of Article 6 cooperation are prepared and circulated to consolidate a common understanding. In this way, the working group contributes to the following key areas:
- Operationalisation of the Article 6.4 requirements for methodologies and removals including methodological requirements for upscaled crediting approaches (policy/jurisdictional crediting)
- Elaboration on technical issues in the ongoing Article 6 negotiations (e.g., authorisation, registries)
- Spreading of ambitious best practice approaches and concepts in Article 6.2 cooperative approaches and in the transition of CDM activities
- Practical considerations beyond the official SBSTA/CMA Article 6 work programme (e.g., coordination of ongoing Article 6 capacity-building efforts)
PUBLICATIONS
11/23
Article 6 authorisation: key issues and implications
The topic of authorisation under Article 6, involves authorisation entities as gatekeepers determining the eligibility and purpose of mitigation outcomes. This paper outlines and delves into the procedural aspects, timing of authorisation and possibilities of changes and revocations in this context.
To understand how and how much carbon credits contribute to global mitigation efforts, it is crucial to keep track of their issuance, transfer, and use. This is done by carbon credit registries. The discussion paper identifies the different types of carbon credit registries in the international carbon market infrastructure under Article 6 and the voluntary carbon market and explores the possible ways in which these registries can connect and interact with each other.
22/12/22
A new discussion paper, “Progress achieved by the Article 6.4 Supervisory Body on relevant mandates in 2022” has been prepared by Perspectives Climate Research in the context of the CMM-WG. The paper elaborates on the progress the Article 6.4 Supervisory Body (A6.4SB) has achieved to date in operationalising the Article 6.4 methodology requirements. The paper focuses on the methodology guidance and the recommendation for removals to be prepared by the A6.4SB.
THE INITIATIVE HAS BEEN GENEROUSLY SUPPORTED BY:
The German Federal Ministry for Economic Affairs and Climate Action
Upcoming events
If you are interested in upcoming events and workshops, please contact Juliana Keßler
