Authorization Working Group
Paris Agreement Article 6 Implementation Partnership
26 September 2023
Thiago Chagas

Lead – Global PM, Carbon Pricing Unit

Global Green Growth InstituteGGGI is a leading provider of A6 readinesssupportMarketDynamics(Awarenessraising, capacity
building )Governance(Policies,procedures andstrategies)

TechnicalAssistance(Tailored supportto implement
MRV, registries,etc.)

Mitigation
Activities(Origination &preparation)

Transactions(Facilitation &FundManagement)

Objectives and GGGI’s role Open international carbon
trading markets under Article 6 Support countries to put inplace frameworks to enable
them to trade
Resource partners:
Swedish Energy Agency
Norwegian Ministry of Climate and Environment
Germany’s International Climate Initiative (IKI)
Australian Department of Foreign Affairs and Trade

MoroccoSenegal
Colombia

Nepal

Pakistan
Cote d’Ivoire
ZambiaLao PDR

Viet Nam
ThailandCambodiaIndonesia

Authorization: Strategic Governance Component
Corresponding Adjustments

Initial ReportMarket certainty

ITMO creation

Authorization
yProcess

CMA GuidanceBilateral Agreements

NDC updates
National Regulations

Different options available: e.g., eligibility criteria Establishing eligibility criteria for
identifying suitable activities for ITMO
authorization is critical Countries have used a strategic list ofactivities, an activity’s place/coverage in
the NDC, or a combination of both

Examples of approaches to Eligibility
Criteria
Country

Ghana
India
JordanVanuatu
Zambia Utilizing both is likely to maximize thebenefits of Article 6 participation andmitigate the risk of overselling (butclearer NDCs may be required)
GGGI Insight Brief 07 - Implementing Article 6 of the Paris Agreement: Options forgovernance frameworks for host countries

Zimbabwe

Strategic list ofactivities

Coverage in theNDC

Different options available: e.g., ITMO sharing
Possible strategic parameters to authorizations(I) Case by case(II) Pre-determined amount

After the activity proponent requesting an authorization
presents an analysis of the action’s total emissions reductions,the host country would then authorize only a specified portionof the total MOs the activity generates, using the remainder toachieve its NDC or enhance its NDC’s ambition (e.g., Jordan)

Few countries have specified an ITMO sharing amount.
Determining the share of MOs to be retained presents
significant challenges for host countries. Examples:

Indicative example

GGGI Insight Brief 07 - Implementing Article 6 of the Paris Agreement: Options forgovernance frameworks for host countries

Different options available: e.g., form and legal
standing
CambodiaZambiaOperations Manual for Article 6Implementation

Carbon Market Framework

 Formalizes Cambodia’s arrangements
for authorization, ITMO generation
and reporting, Draft carbon market framework for
Zambia to operationalize participation
in international carbon markets,
including eligibility criteria

 2 Phases: (A) Pilot Article 6engagement; (B) Scaled-up Article 6engagement

 More flexible / Phased-approach 2 Phases: (A) Interim Guidelines; (B)Statutory Carbon Market Framework
 More flexible / Phased-approach

Colombia
Article 6 Decree Article 6 decree to clarify
institutions, roles andresponsibilities
 Authorization aspects crystalized
directly in the regulation
 More formal and more prescriptive

SPAR6C Program and Tool-Box Guide(s)Learn by doingapproach

Act fast and quickly integratelessons learned

Beyond capacity
building: Decision
SupportOutcome-focusedlearning,
helping to understand andmanage risk

Supporting Preparedness for Article 6 Cooperation (SPAR6C)

Broad stakeholder
engagement

All-hands-on-deck approachcreates long-term impact

Catalyzing private
sector investment

Unlock private sector investment
and interest

Thank You
Thiago Chagas
Lead, Global PM– Carbon Pricing Unit
Global Green Growth Institutethiago.chagas@gggi.org
www.gggi.org

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