Singapore’s Nationwide Local weather Change Secretariat (NCCS) is working with two main carbon credit score applications, Gold Normal and Verra’s Verified Carbon Normal (VCS). Their purpose is to create a brand new protocol that can assist nations meet their local weather targets below Article 6.2 of the Paris Settlement. The newly fashioned Article 6.2 Crediting Protocol will simplify world efforts to chop emissions and promote sustainable development.
Over the previous 12 months, NCCS, Gold Normal, and Worse have labored intently with governments and local weather specialists to form preliminary suggestions. They plan to finalize the Protocol after COP29 and start implementation in 2025, giving nations a sensible instrument to achieve their local weather objectives by robust worldwide cooperation.
Benedict Chia, Director-Common (Local weather Change), NCCS, Singapore, stated,
“It is important to have a protocol that facilitates Article 6.2 cooperation between independent crediting programs and governments. This would ensure that Article 6.2 can operate efficiently.”
Article 6.2: A Pathway to International Local weather Cooperation
Broadly talking, Article 6.2 of the Paris Settlement helps nations obtain their Nationally Decided Contributions (NDCs) and advance sustainable improvement. It additional leverages governments and personal sectors to work collectively by carbon credit score markets to achieve their local weather objectives.
With established carbon crediting applications supplied by Gold Normal and Verra, governments can certify emission reductions and removals with out creating new requirements from scratch. This reduces complexity and ensures quantified outcomes.
Subsequently, this collaboration may also serve an identical objective in decreasing local weather efforts and permitting nations to give attention to impactful actions.
Margaret Kim, CEO of Gold Normal, expressed her opinion within the following assertion,
“If a market is to be trusted, it must be built on solid foundations. For Article 6 to be reliable and efficient, governments and standards need to work together. These initial recommendations outline how, by doing so, they can deliver impact for both the climate and sustainable development.”
Mandy Rambharos, CEO of Verra famous,
“Independent crediting programs offer comprehensive standards and verification mechanisms that are primed and ready for use by governments in their cooperation under Article 6. The positive reactions we are already receiving from government stakeholders demonstrate how independent standards, that have grown up in the voluntary carbon market, have built a robust and credible foundation that can seamlessly integrate into the infrastructure of compliance markets and Article 6. Together, we can enable these new markets to be operational and effective much more quickly than otherwise possible.”
Collaborative Efforts to Form Preliminary Suggestions
The NCCS, Gold Standardand Verra officially announced their partnership at COP28 in December 2023 with a shared ambition, as described above. They’ve been working with governments and local weather specialists to develop the preliminary suggestions for this protocol.
With out this unified method, nations may take the danger of inconsistent paths, which may decelerate or complicate worldwide cooperation below Article 6.2.
The preliminary suggestions or insights will define key concepts and steps that can form the Protocol. Nevertheless, they anticipate to launch the ultimate model solely after COP29, containing the outcomes of the summit.
Moreover, the three organizations will proceed to interact and search suggestions from stakeholders when creating the ultimate Protocol. This is to make sure that it could possibly function a “practical enabler” and complement Article 6.2 guidelines that are adopted inside the United Nations Framework Conference on Local weather Change (UNFCCC).
Moreover, the report calls on governments to take steps to restrict regulatory and market danger related to Article 6.2 transactions. For instance, by adopting instruments like strong templates for Letters of Authorization.
The ultimate protocol might be prepared for implementation in 2025.
Key Elements and Timelines for the Article 6.2 Playbook
Picture: Snapshot of Article 6.2 Crediting Protocol 2024
Supply: Verra
COP29 Milestone – November 2024
At COP29, stakeholders will introduce the preliminary suggestions for the Article 6.2 Crediting Protocol. These tips will provide insights on learn how to harmonize Article 6.2’s implementation throughout Unbiased Carbon Packages (ICPs). The main target might be on offering clear steering for nations, ICPs, and different concerned entities to make sure streamlined and efficient local weather motion.
Beginning 2025 – Protocol Growth and Implementation
From 2025 onward, the improvement of the full Article 6.2 Crediting Protocol will start. This will embrace a specialised knowledge protocol geared toward standardizing how ICPs report back to nations. These protocols might also embrace suggestions for added reporting to ensure the full traceability of credit score transactions, linking them to corresponding changes the place required, primarily based on outcomes from COP29.
Ongoing Engagement and Outreach
Common communication and collaboration with nations, ICPs, and different stakeholders will proceed. The purpose is to construct consciousness, safe help, and deepen understanding of the Article 6.2 Crediting Protocol’s implementation, making certain widespread engagement and efficient adoption.
Carbon Credit vs. ITMOs: Clear Traces for Efficient Local weather Reporting
The Protocol establishes a transparent distinction between two parts: carbon credit and Internationally Transferred Mitigation Outcomes (ITMOs). Carbon credit characterize the direct mitigation outcomes achieved by tasks and are recorded on Unbiased Carbon Program (ICP) registries.
In distinction, ITMOs replicate the accounting implications of those credit below Article 6.2 which are tracked on nationwide registries. This method permits non-public buyers to interact in credit score transactions. On the identical time, it ensures governments monitor these transactions of their Article 6.2 reviews and helps nations meet their Nationally Decided Contributions (NDCs).
We’ve learn in our earlier article about COP29 making a breakthrough in world local weather motion throughout its opening day. Practically 200 governments agreed on a framework below Article 6.4 of the Paris Settlement, backed by the UN to create a stronger demand for carbon creditsparticularly to fund local weather tasks in creating nations.
For this case, let’s wait and watch how Article 6.2 unfolds at COP29 to fulfill the unified purpose of Singapore’s Nationwide Local weather Change Secretariat (NCCS), Gold Normal, and Verra.
