Learn more about the state and trends in international carbon markets "State and Trends of Carbon Pricing: International Carbon Markets"n markets, technology, and a resilient future"
Learn more about the state and trends in international carbon markets "State and Trends of Carbon Pricing: International Carbon Markets"n markets, technology, and a resilient future"
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Developing an Article 6 Strategy for Host Countries

Developing an Article 6 Strategy for Host Countries

The objective of this paper is to develop guidance for host countries on assessing and choosing their approach to participation in Cooperative Approaches of Article 6 of the Paris Agreement. The main audience is government officials in charge of Article 6 in potential host countries. Decisions on Article 6 engagement for host countries could happen on three levels: (i) High-level (“strategic”): the overall decision on whether to participate. This answers the question, “under what conditions would it be beneficial to participate in Article 6?”; (ii) Mid-level (“tactical”): the overall decision on how to participate. This would address key considerations for host countries once they have decided to participate in Article 6, both to minimize risks and to maximize opportunities (for example, using international versus domestic standards, bilateral versus multi-lateral cooperation, detailed approaches to minimizing overselling risks)?”; (iii) Low-level (“operational/technical”): the choices on implementing the various strategic and tactical decisions. This answers the question, “what specific tools, practices and steps are necessary to participate?” (for example, choice of registry, detailed project cycle, requirements to ensure environmental integrity, options for reporting). This paper addresses the first two levels only, while the operational decisions will be addressed in other Article 6 Approach Papers and related guidance. After presenting some fundamental concepts related to Article 6 in section 2, sections 3 and 4 explain the considerations for the strategic and tactical decisions about participation in Article 6. Section 5 then focuses on the chronological process and steps to make these decisions. This paper builds on and references other Article 6 Approach Papers, Partnership for Market Readiness (PMR) work on developing Article 6 participation guidance for selected countries, and the experience of the Carbon Initiative for Development (Ci-Dev)’s Standardized Crediting Framework.

 

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