Climate Warehouse - Simulation III
Climate Warehouse - Simulation III
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Collaboratively Building Capacity for Climate Action-background

Collaboratively Building Capacity for Climate Action

Climate Market Club
Climate Market Club icon

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.

Developing modalities to support countries pilot Article 6 and share lessons based on practical experience

Purpose

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. This is intended to facilitate the development of rules under the Paris Agreement based on practical experience and catalyze early action.

Implementation

The Club was established by the World Bank Group (WBG) together with the MDB Working Group on Article 6 after bilateral consultations with various national entities that demonstrated interest in climate markets.

Usage

The Club meets monthly to discuss key topics related to Article 6.2 and provide inputs to the development of knowledge products to inform piloting. A series of technical Article 6 Approach Papers are discussed at the Club, finalized based on feedback by the Club, and made publicly available.

Current Involvement

As of June 2022, the Club is comprised by 13 governments and 5 non-sovereign entities. The WBG, in coordination with other MDBs serve as the Secretariat, convening meetings and developing technical and knowledge products at the request of the Club.

 

The current club members are:

 

The governments of Bangladesh, Bhutan, Chile, Ghana, Kazakhstan, Japan, Peru, Rwanda, Senegal, Singapore, Sweden, Switzerland, and Ukraine

 

The following non-sovereign entities: Klik Foundation, Global Green Growth Institute, Temasek, Institute for Global Environmental Strategies, and United Nations Development Programme

Article 6 Approach Papers icon

Article 6 Approach Papers

Approach papers are an important aspect to the work we do to enable environments and inform development of regulatory frameworks, institutional arrangements and efficient market infrastructure. 

 

Learn more about the research and work that is being done on key operational issues such as environmental integrity, corresponding adjustment and host country institutional arrangements according to Article 6 of the Paris Agreement. Our most recent papers are featured below.   

Country Policy Framework for Cooperative Approaches Under Article 6.2
Country Policy Framework for Cooperative Approaches Under Article 6.2

Policy framework has been drafted on a unilateral basis for a Party to declare its preferred approach towards implementing a cooperative approach under Article 6.2. The policy framework is intended to provide the minimum legal foundation required to give Parties (including private sector entities) the necessary certainty regarding their rights and obligations as participants to the cooperative approach, including the ability to enforce cross-border contractual arrangements. The policy framework is intended to facilitate negotiations and subsequent agreement between two or more Parties, and the policy framework does not in itself create an effective and binding cooperative approach between Parties. The policy framework is accompanied by several schedules to the policy framework, which play an integral role in setting out the specific requirements. It is intended that these schedules contain the detailed and technical information related to, among other things, environmental integrity, sustainability requirements, approved sectors and activities, and approved standards and methodologies, for the purposes of implementing a cooperative approach. The development of schedules will also benefit from inputs from various technical experts and consultations in platforms such as the climate market club, alongside the final article 6.2 guidance.

September 16, 2021
World Bank
Seeds developing
Carbon Asset Development Process

The Paris Agreement provides a framework for all countries - both developed and developing - to voluntarily adopt individual targets, elaborated in their nationally determined contributions (NDCs). This effectively introduces commitments on the country in the sectors covered by their NDCs. Consequently, there is a need for countries to ensure that mitigation outcomes (MOs) and their international transfer are accompanied by robust accounting. Beyond international climate markets under Article 6, the International Civil Aviation Organization (ICAO) decided to establish a global market-based mechanism, in the form of the carbon offsetting and reduction scheme for international aviation (CORSIA), to help achieve ICAO’s global goal of carbon-neutral growth. This note seeks to identify processes for the generation and transfer of carbon assets in post-2020 international climate markets and to suggest standard terminology in the carbon asset development cycle across key independent standards. The note builds on existing practices among different independent standards to streamline and harmonize process flows and ensure that country governments have greater clarity on the process for engaging in climate markets. This note reflects inputs from the informal working group on carbon assets, pilot transactions under different initiatives, as well as knowledge produced in relevant platforms.

August 26, 2021
World Bank