CMM Working Group
Carbon Market Mechanisms Working Group
The Carbon Market Mechanisms Working Group (CMM-WG) is chaired by Perspectives Climate Research gGmbH and is supported and coordinated in close collaboration with the Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK). In Phase I (2019-2022) and Phase II (2022-2024) it ran a steady exchange of ideas and experience between stakeholders on the technical side of piloting and rulemaking for market-based cooperation under Article 6 of the Paris Agreement. That included events and meetings at the Innovate4Climate (I4C), Regional Climate Weeks, and sessions of the Subsidiary Bodies and the Conferences of the Parties (COPs).
Phase III (2025-2027) continues that work on operationalising and implementing Article 6 cooperation. COP29 delivered a breakthrough on the Article 6 rules, but putting them into practice still requires discussion, not least on the PACM standards, tools and methodologies. Phase III also builds capacity for Article 6 implementation through events and fora, and through work with other international initiatives to share insights and coordinate efforts. The emphasis is on large-scale activities such as programmes, sectoral and policy approaches. The CMM-WG exists to build a shared understanding of difficult technical issues, to give carbon market experts an informal space, and to strengthen the integrity of carbon market instruments.
Honest problem-solving
Take the contested questions (insurance, reversal risk, corresponding adjustments) and work them through on evidence.
Discussion papers that move the field
Publish working-group findings openly so the whole market benefits.
A bridge across COPs
Keep practitioner knowledge flowing into negotiations between sessions.
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 is a platform for dialogue: exchanging experience and coordinating the activities that support programmatic and upscaled mitigation financed through international market-based cooperation or results-based climate finance. It holds regular meetings and workshops where technical experts and stakeholders share experience, challenges and what has worked in their own activities. Background papers on technical aspects of the ongoing operationalisation and implementation of Article 6 are prepared and circulated to consolidate a common understanding.
The working group therefore contributes to operationalising and improving the Paris Agreement Crediting Mechanism, with a special focus on methodological documents for upscaled activities; to working through technical issues in ongoing Article 6 implementation and coordinating Article 6 capacity-building; to spreading ambitious best-practice approaches and concepts in the implementation of Article 6.2 cooperative approaches; and to aligning the voluntary carbon market (VCM) more closely with the Paris Agreement.
- Phase I2019-2022
Established at the I4C in Singapore in June 2019; a steady exchange of ideas on the piloting and rulemaking of Article 6 cooperation.
- Phase II2022-2024
Continued stakeholder exchange across I4C, Regional Climate Weeks, the Subsidiary Bodies and the COPs.
- Phase III2025-2027
Operationalising and implementing Article 6 after COP29, including PACM standards, tools and methodologies, with a focus on large-scale programmes, sectoral and policy approaches.
- 12/2024 Methodological challenges of policy crediting under Article 6 of the Paris Agreement Discussion paper helping stakeholders understand operational challenges of implementing policy crediting approaches
- 10/2024 Key issues regarding Article 6 authorisation Brief paper examining latest developments in negotiations on authorisation-related matters and their impact on accounting, reporting, and review mechanisms
- 08/2023 Interlinkages of registries and implications for functions and structures in the context of Article 6 Discussion paper examining various types of registries within international carbon market infrastructure and the voluntary carbon market
- 12/2022 Progress achieved by the Article 6.4 Supervisory Body on relevant mandates in 2022 Paper elaborating on progress in operationalising Article 6.4 methodology requirements