The Article 6 of the Paris Agreement establishes a framework for the cooperation among countries to implement their NDCs. Carbon markets mechanisms in particular are considered useful approaches to achieve emissions reduction goals in a cost-effective manner. Besides, carbon markets may also contribute to promote ambition raising in both mitigation and adaptation, increase private sector engagement and pursue sustainable development. This has been acknowledged and interest on carbon markets has grown in the last years as a result, to the extent that, as of July 2021, 87% of the new and updated NDCs already mention voluntary cooperation under Article 6 as a mean to achieve their goals.
The overall objective of this 5-years programme is to support 4 developing countries in building their capacity to use Article 6 cooperative approaches to engage the private sector in NDC implementation and ambition raising. This will enable cost-efficient, flexible, high integrity carbon markets with positive sustainability impacts.
The 4 countries selected for the implementation of the programme are: Colombia, Pakistan, Thailand and Zambia. Although at different stages in terms of institutional capacity, climate change mitigation strategy development and NDC progress tracking, all of them have expressed their interest in using cooperative approaches. However, they currently lack the skills and know-how to engage in Article 6 projects and draw carbon finance to achieve their NDCs or increase their ambition.
The UNEP Copenhagen Climate Centre is one of the 4 partners (GFA Consulting Group, Carbon Limits and Kommunalkredit Public Consulting ) of the consortium implementing the project under the leadership of the Global Green Growth Institute (GGGI). The consortium partners coordinate to implement the programme six work packages: one for each of the 4 target countries with focus on long-term planning, institutional readiness and pilot design and two centrally managed packages dedicated to the development of tools to implement cooperative mechanisms and the establishment of a Community of Practice as an international forum to bring together countries and practitioners interested in raising ambition through markets.
In the short term, the programme strives to stimulate climate mitigation activities, and engage governments and private sector in NDC implementation and ambition raising through the use of A6 cooperative approaches. This is expected to also have an impact on the target countries sustainable development strategies as co-benefits of the programme. In the medium and long term, the programme expects to contribute to the establishment of the structures, procedures and regulatory framework in the partners countries which is needed to identify, structure and implement climate programmes independently and with their own resources.