Seoul, Republic of Korea, –22 August 2023 – Article 6 of the Paris Agreement is crucial in the global fight against climate change. Nonetheless, despite its potential to facilitate the implementation of the Paris Agreement, the technical rules of Article 6 are complex notes GGGI in a recent Insight Brief titled Implementing Article 6 of the Paris Agreement: Options for Article 6 governance frameworks for host countries.  

The Paris Agreement’s Article 6 serves as a foundation for voluntary cooperation in addressing climate change by allowing for the international transfer of emission reduction credits between countries. It recognizes that some countries may choose to pursue voluntary cooperation in the implementation of their nationally determined contributions (NDCs) to allow for higher ambition and to promote sustainable development. Critically, Article 6 provides a framework for international cooperation in addressing climate change that encourages private sector investment in climate actions.  

The brief identifies five areas that require host countries to make decisions when seeking to put Article 6 into action. “By highlighting these five areas, we draw attention to options available to host countries when developing governance frameworks to manage Article 6 engagement,” Mark Hopkins, Associate of Article 6 Capacity Building and Knowledge Sharing one of the main authors of this Insight Brief said.  

The brief also notes examples from a broad range of countries and formulates recommendations as considerations for policymakers. “As the Article 6 market is relatively new, many potential host countries – including those in which GGGI is providing Article 6 readiness support – are seeking best practice examples while moving towards implementation. Given that a host country’s governance framework should reflect its specific circumstances, this brief is expected to be valuable in various aspects,” Fenella Aouane, Head of GGGI’s Carbon Pricing Unit, noted. “This can include guiding host countries on the options available when designing such governance frameworks,” Aouane added. Along with its 2030 strategy, GGGI is ready to help countries effectively participate in Article 6, meet their NDC targets and aim for more ambitious mitigation and adaptation outcomes. 

The full report can be downloaded at here.