IETA’S ART. 6 CAPACITY BUILDING AND SUPPORT TO
MARKET FORMATIONArticle 6 Implementation Partnership 1st Plenary Meeting

Andrea BonzanniInternational Policy Director, IETA
bonzanni@ieta.org

ARTICLE 6 & THE PRIVATE SECTOR

Why the private sector cares about Article 6Investment opportunities in mitigation projects
Energy; transport; waste management; agriculture, forestry and landuse (AFOLU); etc.

Access to cheaper abatement options
To be used as offsets in domestic carbon tax or or cap-and-tradeschemes

Voluntary emission reduction objectives
Offsetting claims

NDCs and politicalmomentum onclimate change

Moderate growth;carbon pricing
schemes on therise globally, but
use of int’l offsets
not always allowed
Dramatic growth inlast 2-3 years;
trend expected tocontinue

IETA’S ONGOING INITIATIVES

B-PMI

UMD
economicmodelling

CAD Trust

ERPA
contract
templates

BUSINESS PARTNERSHIP FOR MARKET
IMPLEMENTATION (B-PMI)•Launched in 2022 to promote public-private dialogues and business-led capacity building on carbon markets and Art. 6❑ Bridges of Knowledge – Promote dialogues between governments and the business community and build
bridges of knowledge across sectors and geographies to increase climate ambition.
❑ Synergies with the World Bank – Create synergies with the World Bank’s programme, helping businesses
identify opportunities provided by voluntary and compliance markets as well as Article 6.
❑ Business-Led – Focus on business-led and business-to-business engagement to inform policies and increase
support for carbon pricing mechanisms aligned with climate targets and Article 6.

BUSINESS PARTNERSHIP FOR MARKET
IMPLEMENTATION (B-PMI)

2022 WORKSHOPS

Expert Workshop and Training: Article 6 in Latin
America and Colombia
19 – 20 May 2022
Bogota - Colombia

Carbon Market Developments & Outlooks inMexico: National, Subnational andInternational Review and Future Opportunities
6 September 2022
Guadalajara - Mexico

Unlocking Brazil’s Carbon Potential:
Opportunities for Global Climate Action andProsperity
17 October 2022
Rio de Janeiro - Brazil

CLIMATE ACTION DATA TRUSTCLIMATE ACTION DATA TRUSTAn end-to-end digital ecosystem for carbon markets

MODELLING THE ECONOMIC BENEFITS OF ARTICLE 6•

Research led by IETA, the University ofMaryland (UMD) and Pacific Northwest

CO2$Sellers

Sellers

BuyersBuyersNational Laboratory (PNNL)•Scenario runs using the GCAM model –one of the models used in IPCCassessments❑ NDCs and enhanced ambition (2019)❑ Net-zero (2020-2021)❑ Carbon clubs, impact of drop-outs(2022)

MODELLING THE ECONOMIC BENEFITS OF ARTICLE 6•

Two papers published in 2019 and 2021,
workshop series under Chatham House
rules

•

Ongoing work: capstone report; voluntary
market scenarios; regional/national deepdives•

Workshops and academic symposia canbe organised upon request

TRADING DOCUMENTS FOR EMISSION REDUCTIONSAND REMOVALS•

Comprehensive set of standardised Emission Reduction/Removal Purchase Agreements (ERPAs) relating to thesale and purchase of carbon credits from reduction and removal projects.

•Developed by an international law firm, published between September 2022 and February 2023.

•

Intended to provide a minimum benchmark for transacting emissions reduction and removal credits byincluding basic provisions relating to the transaction of such credits. Options for addressing the risks entailed

are outlined in an accompanying guidance document.
•

Further work on a model legislative framework being considered.

Thank you!

CONTACTS:
Andrea Bonzanni - bonzanni@ieta.org

and counting