Standards required to operationalise a new UN carbon crediting mechanism have been agreed upon ahead of COP29 in Azerbaijan, with the UNFCCC adding that these standards will help facilitate greater collaboration.
According to the UNFCCC, significant progress was made by the Article 6.4 Supervisory Body in operationalising the new UN carbon market mechanism under the Paris Agreement.
This mechanism, known as the Paris Agreement Crediting Mechanism, aims to facilitate global collaboration in reducing greenhouse gas emissions.
Paris Agreement Crediting Mechanism
The Supervisory Body took a new approach to its recommendations for the parties to the Paris Agreement, as it seeks to ensure the mechanism remains agile and capable of adapting to evolving climate challenges.
Two key standards were at the heart of the discussions during the pre-COP meetings – the standard on methodology requirements, which outlines the framework for developing and assessing projects under the Paris Agreement Crediting Mechanism, and the standard on activities involving removals, which governs projects that remove greenhouse gases from the atmosphere.
The UNFCC added that both standards are now Supervisory Body documents, meaning they can be updated to keep up with market development, while also assisting developers with creating and submitting methodologies for their projects, to allow them to be registered under the new Paris Agreement Crediting Mechanism.
‘Fit for the future’
“These new standards are a key element in our effort to deliver a crediting mechanism that is fit for the future,” commented Maria AlJishi, chair of the Article 6.4 Supervisory Body. “As the only crediting mechanism directly responsible to parties and mandated by the Paris Agreement, we are committed to ensuring it balances the needs of achieving the Paris goals, supporting market players, and addressing host country interests.
“The adoption of these standards marks a major step forward in enabling a robust, agile carbon market that can continue to evolve.”
Project alignment
Elsewhere, Martin Hession, vice-chair of the Supervisory Body, highlighted the alignment of project baselines with Paris Agreement goals, an ‘additionality test’ to prevent the lock-in of unsustainable emissions, and measures to mitigate the risk of reversal in greenhouse gas reductions.
“We are exploring alternative methods to compensate for any reversals, as well as potential upper limits to acceptable risk,” he said.
“It’s all about getting the balance right — protecting the integrity of the Paris agreement, driving the necessary climate ambition, while balancing the interests of all market stakeholders and host parties.” Read more here.
