Project Developers are key to initiate new sustainable climate action projects under the Art 6.4 mechanism. Early lessons how to best use opportunities and how to overcome hurdles in the beginning of this new era will be discussed.
Host countries of Art. 6 projects play a much stronger role for the development of projects. Governments and administrations are highly welcome to join the platform cocreating win-win solutions using the new mechanism as a tool to combat climate change and to improve resilience.
The Article 6.4 mechanism is the new UNFCCC crediting programme created by the Paris Agreement. The work has started to implement new rules for: Letters of Assurance and Authorization, baseline setting, methodology updates.
The Voluntary Carbon Market (VCM) was inspired by the Kyoto protocol. Two large Standards emerged:
Today the VCM must find a way to align with the new environment of the Paris Agreement.
Read more:
"Future role for voluntary carbon markets in the Paris era"
The Contribution Claim Model is a new instrument of private sector contributions to climate finance. This instrument has been promoted by the New Climate Institute and used by organizations like Klarna.
While theory seem clear, project developers and users are still struggling to change from a Kyoto to a Paris-Mode. Global, national and regional initiatives try to provide guidance on the quality of units, claims, perspectives for the future and practical recommendations for companies. However, the implementation has to show the viability of rather theoretic suggestions.
In addition to compliance led demand for carbon credits, corporates can decide to purchase carbon credits from the market. BMW explained in a side event at COP26 in Glasgow that the company will purchase correspondingly adjusted units to align with the Paris Agreement.
