Many developing and emerging economies are keen to pursue carbon transactions under Article 6 of the Paris Agreement in the hope that they will promote ambitious climate change mitigation and generate sustainable development outcomes. However, for countries to be fully prepared to actively engage in the future Article 6 carbon market there is a steep learning curve. The German Federal Ministry of Economic Affairs and Climate Action (BMWK) through the International Climate Initiative (IKI) supports the Supporting Preparedness for Article  6 Cooperation (SPAR6C) program. Among the program’s many ambitious goals is one to enable partner governments of Colombia, Pakistan, Thailand, and Zambia to become fully prepared to engage in Article 6 transactions.

As part of the program, the “Article 6 Toolbox” draws on the consortium’s diverse experience in Article 6 activity development to create guidance and tools that can be used in the target countries will make the mechanics of Article  6 implementation better understood. Toolbox development will also promote consistency across countries and efficiency in delivery. A core principle will be the adaptability of the Toolbox to different scenarios to fit the national conditions over the course of the program. The first set of outputs in the Article 6 Toolbox are six guides that target the fundamental needs of host party governments, on the one hand, and activity participants on the other. The six guides are as follows:

• Guide 1: Promoting ambition and transformational change using Article 6
• Guide 2: Developing an Article 6 host party strategy
• Guide 3: Developing an Article 6 host party institutional framework
• Guide 4: Integrating domestic carbon pricing instruments with Article 6
• Guide 5: Screening and developing Article 6 activities
• Guide 6: Financing and contracting Article 6 activities

Out of the six guides, three cater to host party governments, two are tailored for activity participants (either public or private), and the one on ambition and transformational change encompasses aspects from both areas.

Each guide delves deeper into its scope and content, addressing any overlaps with other guides. For example, because institutional arrangements (Guide 3) also have strategic importance, the strategy guide (Guide 2) refers to those arrangements.

Future updates of the guides are planned, in 2024 and 2025, and will feature additional case studies from host countries and delve further into activity development. If you have suggestions for these case studies or any other feedback, please email SPAR6CToolbox@gggi.org.