Press Release

GGGI Releases Guidance on Governance Models for Host Country Engagement in Article 6

Seoul, Republic of Korea, 08 June 2023 – Article 6 of the Paris Agreement facilitates collaborative and transparent efforts among governments, businesses, and civil society to achieve the ambitious goals of the Paris Agreement while staying below 1.5 °C.  Government efforts are vital for achieving these goals through policy implementation and capability development, notes a recent GGGI technical report titled Guidance on Governance Models for Host Country Engagement in Article 6. The report, authored by Carbon Limits under GGGI’s Mobilizing Article 6 Trading Structures (MATS) Program, funded by the Swedish Energy Agency, provides guidance to policy makers of host countries aiming to engage in international transfers of mitigation outcomes under Article 6. 

“This guidance is organized around the key phases and elements of Article 6 engagement from the host country perspective,” Stephan Gill, Senior Officer of Carbon Pricing Unit said. “We clarify the necessary requirements and procedures for host countries, to support their active involvement in Article 6,” Stephan added. 

The report clarifies how key aspects of Article 6 rules will operate in practice and explains the strategic policy decisions host countries must make. Furthermore, the report also emphasizes the necessary institutional arrangements, including authorization, transfer, and tracking of internationally transferred mitigation outcomes (ITMOs) under Article 6. Aligned with its 2030 strategy, GGGI aims to emerge as a frontrunner in driving carbon trading initiatives under Article 6 of the Paris Agreement. 

GGGI’s carbon pricing programs support Members access carbon finance through origination of mitigation projects and policies, strengthening of stakeholder understanding and decision-making capacities, and facilitation of Article 6 transactions between buyers and sellers. Through its innovative new initiative Carbon Transaction Facility (CTF), GGGI aims to scale up readiness support and accelerate Article 6 implementation globally. 

 The full report can be downloaded at here.