Article 6 Pipeline

Article 6 of the Paris Agreement provides a framework for countries to cooperate towards the implementation of their Nationally Determined Contributions (NDCs) through carbon markets (Articles 6.2 and 6.4) and non-market modalities (Article 6.8). These cooperative approaches can help countries to achieve and enhance their NDC targets. The overall objective is to increase climate ambition, promote sustainable development, and safeguard environmental integrity.  

Building on the extensive experience from the Clean Development Mechanism (CDM), as a first step, UNEP Copenhagen Climate Centre (UNEP-CCC) has set up an Excel-based database for Article 6 activities. The aim is to provide insights on the development of Article 6 projects, their contribution to countries’ NDC implementation and SDG achievement at the national and global level. Find a short video introducing this work here. 

UNEP-CCC will continue expanding this pipeline’s functionality as new Article 6 projects emerge and the modalities become clearer. Ultimately, the pipeline will take the shape of a more interactive and user-friendly platform. This will provide transparency and allow users to easily explore information on cooperation under Article 6. Additional background on projects potentially transitioning to the Paris Agreement Crediting Mechanism (PACM) under Article 6.4 Mechanism can be found in the CDM Pipeline and on the UNFCCC website 

CDM activities that are eligible and have requested transition to the Paris Agreement Crediting Mechanism (Article 6.4) 

The deadline for submitting requests has passed. In this explainer video, we examine those activities that intend to transition using CDM methodologies and outline the next steps. 

Video on the CDM Transition (08:30 minutes) – find the slide deck here

As of 3 September 2024, transition requests were correctly submitted for 1,356 Project Activities (PA), 118 Programmes of Activities (PoA), and (together with these PoAs) 949 Component Project Activities (CPA) (see the figure below). Update: In August, the first Parties approved the transition of some CDM activities. This includes two PA, three PoA, and 57 CPA hosted in either Myanmar or the Dominican Republic.

As of May, amendments for resubmissions were initiated for an additional 96 transition requests. For another 223 PA and PoA, there was no further communication with the UNFCCC after submitting the original request. For these 319 projects and programmes, authorized entities now have until 4 November 2024 to submit the corrected documentation. After this, the list of potentially transitioning activities is final.

Of the potential reductions of around 1.5 billion tonnes of CO2e that eligible activities could generate after transition while using CDM methodologies, this could amount to more than 900 million tonnes (60%). 

For more details (such as submissions by host countries, regions, and activity types) please refer to the sheet Analysis | PACM in the A6 Pipeline.

 

Summary of the Article 6 Pipeline’s other components: 

     1. Overview of the Bilateral Agreements and pilot projects/activities under Article 6.2 of the Paris Agreement  

The table below provides an overview of Bilateral Agreements (BA) for the cooperation under Article 6.2 of the Paris Agreement as of 3 September 2024. This also includes memoranda of understanding (MoU) or other official statements that show the intention to collaborate and potentially engage in trading of mitigation outcomes under Article 6.  

  • There are 90 BAs between 56 different countries
  • A total of 141 pilot projects have been recorded, out of which 119 belong to Japan’s Joint Crediting Mechanism (JCM).

Out of 141 pilot projects, 5 have Authorization Statements. The involved countries – Ghana (3x), Switzerland (4x), Thailand, Vanuatu – also submitted Initial Reports to the UNFCCC. The total expected amount of Mitigation Outcomes from these projects are:  

  • Promotion of climate smart agriculture practices for sustainable rice cultivation in Ghana (Ghana-Switzerland | Authorized Reductions: 1,126 ktCO2e) 
  • Bangkok E-Bus Program (Thailand-Switzerland | 500) 
  • Electrification of Vanuatu’s Inhabited Islands through Solar Power ITMO Programme (Vanuatu-Switzerland | 97) 
  • Integrated waste recycling and composting for methane reduction in Ghana (Ghana-Switzerland | 1,589)
  • Transformative Cookstove Activity in Rural Ghana (Ghana-Switzerland | 3,231)

On 15 December 2023, the first ever issuance of 1,916 ITMOs (Internationally Transferred Mitigation Outcomes) occurred for the E-Bus Program in Bangkok covering the period from October to December 2022. This transaction between Thailand and Switzerland is the first under Article 6.2 of the Paris Agreement. 

Bilateral Agreements (BA) between countries on Article 6 of the Paris Agreement and number of projects/activities within the framework of those BAs:

 

Blank cells mean that we have no knowledge of any dedicated Article 6 pilot projects between the two countries. Some countries that signed BAs do not yet publicly provide information on Article 6 pilot activities.   

 

    2. Overview of pilot projects/activities  

The identified pilot projects fall into following types:  

EE = Energy Efficiency
HFCs = Hydrofluorocarbons 

Out of the 141 pilot projects/activities, 77% have the host country in Asia, 13% in Africa, 6% in the Americas and 4% in Oceania.   

 

     3. Designated National Authorities for Paris Agreement Crediting Mechanism (PACM)

Based on the last update on 19 July 2024, 88 Parties communicated their Designated National Authority (DNA) to the UNFCCC secretariat. More than two-thirds of all Parties across Africa (36 countries | 67%) have submitted information about their DNA, followed by Asia (25 | 52%) and the Americas (15 | 43%). Regular updates can be found here: Designated National Authority for Article 6.4 Mechanism | UNFCCC. 

 

 

Monthly news on Article 6 Pipeline: 

The August 2024 version of the Excel-based Article 6 Pipeline includes the following updates:

  • The first Host Party Approvals were published for requests to transition from CDM to the Article 6.4 Paris Agreement Crediting Mechanism (PACM).
  • Integration of 198 Notifications of Prior Consideration from activity proponents who intend to participate in the PACM were integrated into the database.
  • Inclusion of four MoUs between the Philippines and Singapore, between Zambia and Sweden, between Cambodia and South Korea, and between Kazakhstan and South Korea.
  • Two projects based in Ghana were added. One activity aims to reduce charcoal consumption (complementing an existing electric cookstove project by the same developer) while another one plans to facilitate more sustainable palm oil production. A cookstove and sustainable biomass project in Malawi was removed from the database.