Initiative · Policy dialogue Active · convened by Perspectives

CMM Working Group

Carbon Market Mechanisms Working Group

Convening since2019
Climate solutionCarbon Markets · Policy
Who takes partPractitioners, researchers and policymakers
Outputs4 publications and counting
Overview

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.

What this initiative works towards

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.

How it unfolded
  1. Phase I
    2019-2022

    Established at the I4C in Singapore in June 2019; a steady exchange of ideas on the piloting and rulemaking of Article 6 cooperation.

  2. Phase II
    2022-2024

    Continued stakeholder exchange across I4C, Regional Climate Weeks, the Subsidiary Bodies and the COPs.

  3. Phase III
    2025-2027

    Operationalising and implementing Article 6 after COP29, including PACM standards, tools and methodologies, with a focus on large-scale programmes, sectoral and policy approaches.

Supported by
  • Federal Ministry for Economic Affairs and Climate Action of Germany (BMWK)
Convening, in practice

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