Battaramulla, Sri Lanka, May 2-3, 2024 – The Global Green Growth Institute (GGGI) and the Ministry of Finance of Sri Lanka closely collaborated to host a comprehensive 2-days training workshop on the Article 6 of the Paris Agreement.  The workshop aimed to enhance stakeholder understanding of international carbon trading, empowering participants to take informed climate action.  

Article 6 of the Paris Agreement provides a framework for international cooperation using market-based mechanisms to achieve climate goals. Recognizing the importance of carbon finance, GGGI and the Ministry of Finance partnered to organize the workshop to equip key government stakeholders including the Ministry of Environment and others with the necessary expertise to navigate carbon markets effectively. As Sri Lanka continues its journey towards achieving its NDCs, both the Ministry of Finance and Ministry of Environment play pivotal roles as carbon market regulators and leaders in inter-governmental coordination and strategic decision making. 

The workshop arrived at a crucial moment for Sri Lanka, which is in the process of preparing its Article 6 carbon market framework. Accordingly, the training session was designed to boost the confidence and awareness of those involved, equipping them to contribute effectively to the design of the Article 6 strategy and actively promote its implementation. The two-day workshop featured a series of interactive sessions led by experts from GGGI’s Carbon Pricing Unit Global Practice and resource partners at Carbon Limits. Participants engaged in discussions, activities, and simulations covering key topics such as ensuring environmental integrity, managing overselling risk, institutional coordination, blended climate/carbon finance, pricing strategies and transactions models. 

The workshop drew participation from a diverse range of stakeholders, including government officials from the Ministry of Finance and Ministry of Environment, Presidential Secretariat, Ministry of Foreign Affairs, Ministry of Power and Energy, Ministry of Industry and representatives from the state banking sectors. The Ministry of Trade and Industry of Singapore, with which the Government of Sri Lanka has signed a memorandum of understanding on carbon market cooperation, also virtually participated to reinforce key messages, and inform participants about demand site motivations and protocols. 

Mr. Ajith Abeysekara, Director General, Ministry of Finance, Sri Lanka added that “Carbon trading is pivotal for decarbonizing Sri Lanka’s economy, offering innovative ways to link economic development with environmental sustainability and leverage international carbon finance”. The Senior Additional Secretary at the Presidential Secretariat and CEO of the Climate Office Dr. Anil Jasinghe provided that “with the development of a Climate Change Act, Sri Lanka is poised to harness carbon trading under the Paris Agreement to significantly exceed our NDC targets”. 

Ms. K.N.K. Vidyalankara, Director, Environment Planning and Economics Division, Ministry of Environment added her insights that “under the Paris Agreement, Sri Lanka is making significant strides towards establishing a robust carbon trading framework, with the indispensable support of the UNFCCC. This multi-stakeholder process marks a crucial first step towards an effective Article 6 Carbon Trading Strategy for our nation”. 

Looking ahead, the insights stakeholders gained from the workshop are expected to inform the forthcoming Sri Lanka A6 Strategy and promote cooperation to develop enabling environment for carbon trade markets in Sri Lanka.