Article 6 of the Paris Agreement recognizes that countries may voluntarily cooperate with each other to deliver on their NDCs and raise ambition. Effectively, this Article introduces the use of carbon markets globally. Article 6.2 signals flexibility for and permits direct bilateral or plurilateral cooperation for the generation and transfer of mitigation outcomes (MOs) from one country to another under a variety of mechanisms. Article 6.4 will likely be governed by the Parties through the UNFCCC process
The Climate Warehouse program prototypes, tests, and develops digital infrastructure to foster greater transparency, trust, and integrity in the carbon markets. Successfully prototyped and tested elements of the digital infrastructure will be operationalized to build the market infrastructure. Examples include the recently launched metadata platform to connect and aggregate registry information (the Climate Action Data (CAD) Trust), digital MRV systems, national carbon registries, tokenization instruments, and a one-stop resource platform that enhances knowledge-sharing and capacity-building.
Climate Market Club
The Climate Market Club (or "Club") is a group of national governments and non-sovereign members that agree on common principles and jointly develop modalities for piloting activities under Article 6.2 of the Paris Agreement.
The objective of the Club is to serve as a forum for discussion and consensus on how different elements of Article 6.2. of the Paris Agreement can be piloted.
The Mitigation Action Assessment Protocol (MAAP) is proposed as a key tool for evaluating the risks and performance of climate actions and policies.
MAAP has four modules that focus on project or program-level assessments, specifically in relation to mitigation action design, capacity of the management entity, financial sustainability of the mitigation activity, and development benefits….
The MDB Vice-Presidents and Senior Directors agreed to establish an MDB Working Group (WG) to support the design and operationalization of Article 6 during the IMF-WBG Annual Meetings in October 2017. Announcement and joint statement are published here.
MDB Working Group
The MDB Working Group
on Article 6 of the Paris Agreement (MDB WG) is a group of multilateral development banks (MDBs) that are working on the design and piloting of carbon market and non-market mechanisms under Article 6 of the Paris Agreement.