GGGI Releases Guideline to Mitigation Outcome Purchase Agreements  

Seoul, Republic of Korea, – May 10 2023 – Purchase agreements are a common practice in all types of carbon markets, including voluntary and compliance markets. Some of the elements from Article 6 that might be reflected in the so-called Mitigation Outcome Purchase Agreements (MOPAs) include provisions related to corresponding adjustments (CAs), registries, safeguards, and authorization of transfer. GGGI Guideline to Mitigation Outcome Purchase Agreements provides a guide for anyone interested in learning the general purpose and structure of a MOPA as well as understanding both sides of the negotiation table, potential risks of terms and conditions, and the means to address these risks. 

The guideline uses the typical structure of a contract for emission reductions trading and explains the contents we can expect to find in each section. “Rather than being a template with prescribed text, the guidance explains different options for potential sellers and buyers to be aware of the possibilities,” Ximena Aristizabal Clavijo, Lead of the Article 6 Program said. “We wanted to help participants to make informed decisions on those sections that are flexible and can be adapted to their needs. We also draw attention to potential risks and different ways to manage them within the text,” Ms. Ximena added.  

 The report notes GGGI’s experiences in carbon trading which led to the decision to run a training course with the support of expert lawyers from Carbon Limits and Climate Focus in four of our implementing countries. “We thought we could make the information available to an extended public and decided to put this guide together. Our aim is to demystify the purchase agreements and encourage carbon sellers in developing countries to use the legal text to address their concerns and reduce their risks,” Carlos Maldonado, Associate of the Designing Article 6 Policy Approaches (DAPA) Program noted. In compliance with its 2030 strategy, GGGI envisions becoming a leader in catalyzing carbon trading under Article 6 of the Paris Agreement.  

 The full report can be downloaded at  here