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GGGI at COP26 Events on Article 6 and Carbon Markets

Glasgow, United Kingdom; November 12, 2021 – GGGI Deputy Director & Head of Carbon Pricing Global Practice, Ms. Fenella Aouane, represented GGGI at side events of COP26 in Glasgow to share her insight into various topics surrounding Article 6 of the Paris Agreement and carbon markets.

On November 5 at the Indonesia Pavilion, Ms. Aouane delivered a presentation in the event on Operationalizing Article 6 of the Paris Agreement for a More Ambitious GHG Emission Reduction Target. Ms. Aouane shared GGGI’s Article 6 programs, notably its work with Indonesia, and highlighted the importance of governance framework design sharing, “We need to make sure there is the coordination between ministries to be able to approve and authorize projects, policies, & ITMOs for international trade to ensure that we’re not eating into the unconditional NDC.” The November 8 event Designing Article 6 Policy Options for Indonesia at the Indonesia Pavilion was moderated by GGGI Director-General Dr. Frank Rijsberman, who was joined by speakers from the Coordinating Ministry of Economic Affairs, the Coordinating Ministry of Maritime Affairs and Investment, and the Ministry of Environment and Forestry of Indonesia.

On November 8, Ms. Aouane delivered the opening remarks at the event on Steps to Trade – What’s Needed to Bring the Parties Together for ITMO Transactions, co-hosted by GGGI & IETA, to share how Article 6 transactions require action from both project implementers and national authorities, as well as how to create confidence that all parties will fulfill their responsibilities. Also during the event, Ms. Aouane moderated a panel discussion to cover issues such as how to get assurance from seller countries, putting in place the governance frameworks for Article 6, addressing risks of corresponding adjustments in MOPAs, and dealing with risk as a project developer.

On November 9, GGGI and NEFCO co-organized an event on Nordic approaches to support global carbon market cooperation to outline the Nordic perspectives in putting the Paris Agreement mechanisms into practice and provide an overview of ongoing activities supporting the development of a global carbon market. The workshop consisted of two panel sessions moderated by Ms. Fenella Aouane and Ms. Ingvild Solvang of GGGI. Session A looked at the progress made in piloting of Article 6 transactions and practical experiences were shared on identifying environmentally integral projects to setting up the institutional frameworks required to trade, while Session B invited an expert panel to share insights on how to ensure continued ambition raising and sustainable development at the same time.

Later that day, Ms. Aouane moderated a panel discussion during the event on Capacity Building for Article 6 Readiness, co-hosted by GGGI and COP26 Catalyst for Climate Action. During the event, Ms. Aouane spoke about reinventing capacity building to a structural standpoint and the need to consider the infrastructure that’s required to participate in Article 6.

On November 10, GGGI co-hosted the Launch of the Capacity Building Program ‘Supporting Preparedness for Article 6 Cooperation’: For High Ambition NDC Implementation, moderated by Ms. Fenella Aouane. “We see governance frameworks as being vital to enable governments to trade under Article 6. As we’ve heard from many presentations, it’s not the same as CDM. There needs to be a lot more government involvement so we need to help host countries set up the who, what, when where, why of institutions to be able to decide on Article 6 strategies,” shared Ms. Aouane during the event.

On November 11, Ms. Aouane also moderated a panel session at the event on Article 6 of the Paris Agreement: Challenges and Opportunities at the Morocco Pavilion.