The CMM-WG is chaired by Perspectives Climate Research gGmbH (Perspectives) and is funded and coordinated in close collaboration with the German Federal Ministry for Economic Affairs and Climate Action (BMWK). In its second phase (2022-2024), the CMM-WG focuses on strengthening the expert dialogue on technical aspects of regulating and implementing market-based cooperation under the Paris Agreement (Article 6.2 and 6.4), including for compliance, offsetting, and climate finance purposes. The emphasis lies on programmatic and upscaled crediting approaches. The working group aims to facilitate a continuous dialogue among key carbon market stakeholders on ambitious, high integrity approaches to operationalise, improve and scale up carbon market instruments.
Background and objective
In designing international market-based cooperation as set out in Articles 6.2 and 6.4 of the Paris Agreement, the Parties ought to consider the experience gained to date under the Kyoto Protocol (e.g., under the Clean Development Mechanism) and build on successful models. The CMM-WG provides a platform for dialogue, enabling the exchange of experiences and coordination of activities to support the role of programmatic and upscaled activities financed through international market-based cooperation or results-based climate finance. The CMM-WG conducts regular meetings with working group members and invited stakeholders to share experiences, challenges, and success stories of their activities. Background papers on key issues for future international market-based cooperation are prepared and circulated to consolidate a common understanding of technical issues. In addition, Perspectives regularly consults with relevant stakeholders on specific issues and reports to the CMM-WG. In this way, the working group contributes to the development of robust rules that ensure environmental integrity for scalable mitigation approaches.
Outcomes of Phase I
Between September 2019 and July 2022, the CMM-WG successfully facilitated a steady interchange of ideas and experiences between relevant stakeholders from different backgrounds on technical aspects concerning the piloting and rulemaking of Article 6. The CMM-WG has also accommodated input from host country representatives in its activities. Over the course of phase I, the CMM-WG delivered the following outputs:
➢ Publications on technical aspects of Article 6 such as safeguarding environmental integrity through baseline setting, additionality determination, ensuring transparency and the coordination of Article 6 capacity building.
➢ Workshops and working meetings, including events and meetings at the Innovate4 Climate (I4C) (2019, 2020, 2021), Regional Climate Weeks, sessions of the Subsidiary Bodies and COPs.
Updates
22.12.22
A new discussion paper, "Progress achieved by the Article 6.4 Supervisory Body on relevant mandates in 2022" has been prepared by Perspectives Climate Research in the context of the Carbon Market Mechanisms Working Group.
As per the rules, modalities and procedures (RMPs) for the Article 6.4 Mechanism (A6.4M), the role of the Article 6.4 Supervisory Body (A6.4SB) is to supervise the mechanism under the authority and guidance of the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA).
Read the full discussion paper here.
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07.22
Developing an Article 6 tool to set a robust crediting baseline
The paper discusses the development of an Article 6 baseline tool that can be added to existing CDM methodologies, so that these comply with Article 6 requirements. First, the paper reflects on baseline setting approaches in the Kyoto era and outlines the new requirements for setting crediting baseline under Article 6 of the Paris Agreement. Subsequently, ongoing efforts by different organisations are introduced that are currently shaping the discussion on Article 6 baseline setting. One example is the International Initiative for Development of Article 6 Methodology Tools (II-AMT) that has developed a concept note for the development of an Article 6 baseline tool which is addressed in detail.
Read the full discussion paper here.
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31.05.22
Developing an Article 6 tool to assess the additionality of mitigation activities
As countries move towards implementing Article 6 following the adoption of the Article 6 rulebook, focus must now turn towards transforming existing CDM market-based methodologies to align them with the rules and requirements of Article 6 of the Paris Agreement. The latest discussion paper by the CMM-WG reflects on the efforts of the International Initiative for development of Article 6 Methodology Tools (II-AMT), which is developing tools for accelerating this methodological transition. The paper critically analyses the additionality tool being developed under this initiative and provides recommendations for the tool developers to be considered in the II-AMT development phase that started in May 2022.
Read the full discussion paper here.
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11.04.22
Capacity building for Article 6 cooperation: The way forward
Perspectives Climate Research has developed a new discussion paper Capacity building for Article 6 cooperation: The way forward, with the objective to outline lessons learned from capacity building efforts in the context of the Kyoto Protocol’s market mechanisms, especially the Clean Development Mechanism (CDM), to conceptualise capacity building and to discuss the challenges and success factors of capacity building, in particular of capacity building support provided to developing countries, through North-South, South-South, and peer-to-peer approaches.
Read it here.
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12.12.21
The December Newsletter of the Carbon Market Mechanisms Working Group
We are delighted to share with you our latest newsletter with fresh updates and new insights.
Read about all the exciting things we have been up to here.
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27.10.21
A new discussion paper “Ensuring transparency of Article 6 cooperation – designing robust and feasible reporting and review processes and building capacities” has been prepared by Perspectives Climate Research in the context of the Carbon Market Mechanisms Working Group.
The discussion paper discusses how transparency of Article 6 cooperation can be ensured. More specifically, it discusses optimisation options of the envisioned operationalisation of accounting, reporting and review processes under Article 6 and their links to reporting and review processes under the enhanced transparency framework of Article 13. Building on the Article 6.2 and 6.4 negotiation draft texts and the recent developments at informal discussions in June and September 2021, the authors derive concrete recommendations to refine the provisions at the 26th Conference of the Parties.
Make sure to read the full paper here.
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11.10.21
The October Newsletter of the Carbon Market Mechanisms Working Group
We are excited to share with you our latest newsletter with fresh updates and new insights.
Check out our October newsletter here.
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26.05.21
Innovate4Climate Conference CMM-WG event 26 May 2021: “Opportunities and challenges in designing Article 6 methodological approaches – eliciting stakeholder perspectives”
Please access the recording here: Innovate4Climate: Virtual Meeting Details
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10.05.21
We are delighted to publish the first newsletter of the Carbon Market Mechanisms Working Group:
Carbon Market Mechanisms Working Group - Quarterly newsletter (May 2021)
FUNDED BY
The German Federal Ministry for Economic Affairs and Climate Action
