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 enable countries to reach their NDC targets in a flexible and cost-efficient way. 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 sets 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 SDGs achievement at the national and global level.

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 allow users to easily explore and analyse Article 6 projects data. The plan is also to integrate relevant data from the existing CDM Pipeline.

Currently, CDM pipeline contains analysis of the CDM activities eligible for transition to the new Article 6.4 mechanism (without applying new methodologies). It also includes estimates of the potential number of emission reductions from transitioned activities with CDM methodologies.

Summary of the highlights of the A6 Pipeline is provided below:

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

Table 1 provides an overview of signed Bilateral Agreements (BA) for the cooperation under Article 6.2 of the Paris Agreement as of 2 September 2023.

• There are 61 BAs between 6 different buyer and 39 host countries
• A total of 136 pilot projects have been recorded, out of which 113 belong to Japan´s Joint Crediting Mechanism (JCM).

Out of 136 pilot projects, 3 already have Authorization Statements. First Authorization Statements by the Federal Office for the Environment of the Swiss Federation were published for the projects between Switzerland-Ghana (12 November 2022), Switzerland-Thailand (27 February 2023) and Switzerland- Vanuatu (16 June 2023). Those projects also have preliminary/updated initial reports. The total expected amount of Mitigation Outcomes for these projects are:

• “Promotion of climate smart agriculture practices for sustainable rice cultivation in Ghana”: 1,126 of ktCO2e
• “Bangkok e-bus Program”: 500 ktCO2e
• “Electrification of Vanuatu’s Inhabited Islands through Solar Power ITMO Programme”: 97 ktCO2e.

Table 1 – 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 who signed BAs but do not yet publicly provide information on Article 6 pilot activities.

2. Overview of pilot projects/activities

Currently, the Article 6 Pipeline contains information on 136 pilot projects (including JCM projects), which could open the way for the further development of carbon market activities under Article 6 of the Paris Agreement. Pilot projects fall into following types:

EE = Energy Efficiency
HFCs = Hydrofluorocarbons

Out of 136 pilot projects/activities, 76% of pilot projects with host country in Asia, 13% in Africa and 6% in the Americas.

3. Designated National Authorities for Article 6.4 Mechanism

Until the end of August 2023, 55 Parties that communicated their Designated National Authority (DNA) for Article 6.4 Mechanism to the UNFCCC secretariat. 40% of DNA submissions are from countries in Africa, followed by Asia (27%) and the Americas (18%). Regular updates can be found here: Designated National Authority for Article 6.4 Mechanism | UNFCCC.

Monthly news on Article 6 Pipeline:

• The August 2023 version of the excel-based Article 6 Pipeline includes following updates:
  • 10 Bilateral Agreements were added with the following buying countries: Singapore, Australia, South Korea.
  • 13 new submissions of Designated National Authorities (DNA) for Article 6.4 mechanism to the Secretariat.
  • 24 Article 6 Capacity Building and technical support activities were added.