International Conference for Implementing Article 6 of the Paris Agreement

Summary of the 2nd part of the Conference
March 7, 2022

Organized by:
Ministry of the Environment, Japan (MOEJ)
Institute for Global Environmental Strategies (IGES)

Supported by:
UNFCCC Secretariat, COP26 and COP27 Presidencies

Summary of the Conference
At the COP26 of U.N. Framework Convention on Climate Change (UNFCCC) in Glasgow last November,
negotiators reached the agreement on the implementation guidelines for Article 6 of the Paris
Agreement – a long-waited piece of the Paris Rulebook. Article 6 is instrumental for operationalizinginternational carbon markets and has great potential to contribute to deeper global emission
reductions by stimulating the global decarbonization market and private investment.
In order to accelerate Article 6 implementation at the earliest stage, it is important to understand therules stipulated in the Article 6 guidelines by all stakeholders, to create enabling environments for thedevelopment of emission reduction projects, and to formulate strategies for utilizing the Article 6 in
the achievement of NDCs.
In light of this, the International Conference for Implementing Article 6 of the Paris Agreement is hostedby the Ministry of the Environment, Japan and Institute for Global Environmental Strategies (IGES) andsupported by the UNFCCC secretariat and COP26 Presidency and COP27 incoming Presidency.
The overarching objectives of the conference are:
Foster a common understanding of the decisions made on the Article 6 Implementation
Guidelines at COP26 and the Article 6 Work Programme for 2022;
Share the development of institutional and governance framework and capacity-building needs
based on the experience of Article 6 negotiations and piloting; andDiscover areas where the implementation can be accelerated by collaborating withstakeholders.
The 2nd in the series was held on 7 March, aiming at framing the discussions for the 2nd conference
through presentations on future work and capacity-building support needs based on the agreementof the Article 6 rules. The speakers identified, the following key areas for capacity-building as needs.
Key inputs for capacity buildingo Importance of understanding the Article 6 rules and its relations to NDCs: There is a needto have a clearer understanding of the agreement to implement it.
o Need to prepare institutional arrangement for Participating in Article 6: National
coordination and institutional arrangement are required to carry out authorization andcorresponding adjustments.
o Utilizing Article 6.4 mechanism: The expectations on the 6.4 mechanism as a tool toenhance ambition.
o Reporting of Article 6: There is a need to discuss what is needed for Article 6 reporting,including in relation to data collection and corresponding adjustment.
2o CORSIA and voluntary carbon markets: We can learn from the experiences of CORSIA.

The March conference attracted participants representing 91 countries.
For more information, please visit the IGES webpage:https://www.iges.or.jp/en/events/20220217

Disclaimer
The organizers have made every effort to ensure objectivity and provide a comprehensive summaryof the conference, but errors can occur. The organizers assume no liability or responsibility for anyerrors in this report. Please also refer to the recordings and/or presentations available on theconference site for each speaker’s contribution.

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1. Summary of each session
1.1. Opening session
1.1.1. Opening remarks
ONO Hiroshi, Director General, Global Environment Bureau, Ministry of the Environment,
Japano Following the agreement on the Article 6 rule at COP26, it was mentioned that 2022
will be important year for the implementation of Article 6. He also explained that Japan,
as a pioneer in the Joint Crediting Mechanism (JCM), will take the lead in supporting
the implementation of Article 6 to promote decarbonization and the global market fortechnologies, infrastructure, and services. Building on the outcomes of the first meeting,expectations were expressed for evolving discussions on capacity building activities incollaboration with the Regional Cooperation Centers (RCCs).
UGA Maiko, Section Chief, Office of the Market Mechanisms, MOEJo She presented the objectives of the International Conference on Article 6 and theresults of the First International Conference on Article 6. She also reported on theimportance of understanding the rules of Article 6 and the relationship between
institutional arrangements, the use of Article 6.4, Article 6 reporting, CORSIA and thevoluntary carbon market. Regarding the support for capacity building under Article 6,
she explained that a process of planning, implementation, monitoring and evaluation isnecessary. It is important to prepare the rule and guideline for ensuring environmental
integrity, the authorization of ITMOs, and corresponding adjustment under theimplementation stage.

1.2. Capacity-building support for early implementation of Article 6 of the ParisAgreement
1.2.1. Experience in the capacity-building programme for host countries
Achievements and experiences of the RCCs. Jens Radschinski, Head, UNFCCC RegionalCollaboration Centre (RCC), Bangkok
o He presented an overview of the activities and roles of Regional Cooperation Center, as
well as the experience in capacity building for Clean Development Mechanism (CDM) etcand beyond covering various other elements under the UNFCCC namely mitigation,adaptation, means of implementation etc. He also explained that the capacity building isnecessary for the implementation of Article 6 of the Paris Agreement including reportingon Article 6.2 and Article 6.4, and institutional arrangements related to Article 6.4.
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1.2.2. Identification of capacity building activities for implementing Article 6
1.2.2.1. Article 6 reporting and corresponding adjustments; Mutual Learning Program for Enhanced
Transparency
HATTORI Tomohiko, Researcher, IGESo He introduced the experience of mutual learning for enhanced transparency which wasconducted with Chile, Thailand, Mongolia, and Indonesia. In the mutual learning, anexercise on Article 6.2 reporting was conducted for government officials to promote
understanding of corresponding adjustment and initial report. Through the exercise work,it was reported that there is a need to promote understanding on the terminology ofArticle 6, preparing the authorization, as well as the coordination to track JCM credits.
Juan Pedro Searle, Head of Climate Change Unit, Ministry of Energy, Chileo Chile implemented the cooperation with Switzerland on a small project regarding Article
6. In addition, the bilateral cooperation is also being implemented with Japan and Canada.
He also shared that the Pacific Alliance's activities include activities related to MRV. Thefuture tasks include the relationship with Climate Change Bill, the need for hiring a staff
member to be in charge of the preparation of the biennial transparency report.
1.2.2.2. Readiness activity for Article 6 : Institutional arrangement, MRV and peer learning
Bianca Gichangi, Coordinator, Eastern Africa Alliance on Carbon Markets and Climate Financeo She presented the overview of the activities of East Africa Alliance. She also shared theiractivities on the workshop to promote understanding of corresponding adjustment,Private sector dialogues, and Article 6 negotiators handbook. She also stressed theimportance of the authorization, corresponding adjustment, reporting and developmentof registry in the context of the implementation of Article 6 in the future. It is necessary
to prepare the procedures for authorization and corresponding adjustment and templates
for reporting.
Ousmane Fall Sarr, Coordinator, West African Alliance on Carbon Markets and Climate Financeo He introduced their activities such as the participation in the UNFCCC negotiations, pilotsof the transition of CDM and readiness for the implementation of Article 6. He also
explained that 18 countries and donors such as Switzerland, World Bank, Japan, Sweden,and Germany have participated in the West African Alliance roundtable. He mentioned
the importance of workshops to promote understanding of corresponding adjustments,5

CDM transition, additionality and baseline setting. Several challenges were identified sucas the lack of knowledge including the private sector in the host country as well as policy,regulatory frameworks and strategies for the implementation of Article 6.
1.2.2.3. Pilot activity: Infrastructure development, domestic market policy and participation byprivate sector
Virender Kumar Duggal, Principal Climate Change Specialist, Sustainable Development andClimate Change Department, Asian Development Banko As a part of the Carbon Markets Program 2.0, he introduced the technical assistance being
provided to seven countries (Bhutan, Indonesia, Mongolia, Pakistan, Philippines, Thailandand Vietnam) through the Article 6 Support Facility for the implementation of Article 6.
He also shared lessons learned through the assistance, including the need to promoteinter-ministerial coordination, alignment of Article 6 ambitions with NDC and long-term
strategies, and building on existing infrastructure and institutions.
Wendy E. Hughes, Practice Manager, Carbon Markets and Innovation Climate Change Group,World Banko She introduced the activities which has been involved since the Kyoto Mechanisms. She
also shared their activities including Partnership for Market Readiness, Partnership forMarket Implementation Facility (PMIF), and the Climate Markets Club's experience inimplementing Article 6. As lessons learned, it was explained that further understanding inhost countries, infrastructure for implementation, and tools need to be developed in thefuture.
Drik Forrister, President & CEO, The International Emissions Trading Associationo He shared IETA’s evaluation of the Article 6 agreement from the private sector perspective
as well as the results of the model analysis on Article 6. One of issues to be addressed in
the future were identified such as the rapid implementation of Article 6, the relationshipbetween Article 6 and NDCs, authorization and corresponding adjustment, reporting andtransparency, and the establishment of Article 6.4 mechanism. He also explained that IETA
will work with various partners, including international organizations, and provide training
for the private sector in the future.

62. Way forward
At the wrap-up session, KOAKUTSU Kazuhisa, Director of International Negotiations, Office of MarketMechanisms, MOEJ summarized the 2nd conference:o Sharing good practices and lessons learned with RCCs (RCCs hub)o A6 institutional arrangement (authorization), ambition raising (Communication)o Replication and scale up of activities: A6 reporting: replication through RCCs network forother regionso A6 mechanism baselines and tools: experience of CDM standardized baselines, hands-on
supporto Piloting and project developmento Domestic tracking and recording infrastructure (registry)o Coordination of efforts (RCCs, Parties, International Organizations, Private Sector, etc.)ismuch needed
For the closing remarks, SEGAWA Keiko, Deputy Director General of Global Environmental Bureau, MOEJ,
conveyed her gratitude to all the speakers. She also mentioned that Ministry of the Environment Japanplans to conduct capacity building in cooperation with the RCC, other countries and organizations tocontribute to the stable and rapid implementation of Article 6. In particular, it was expressed thatcapacity building support for both institutional arrangements and technical aspects of Article 6
implementation was being considered.
o The institutional arrangement: training of officers to carry out appropriate corresponding
adjustment and authorization system in collaboration with Asia-Pacific RCC in Bangkok.
o The technical aspects: technical support for calculating emission reduction, and setting thebaseline for the Article 6.4 project, individually or in the form of workshop.

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Annex: Agenda of the 2nd Event
Contents:--

Based on the discussion at the first conference, 2nd event will focus on specific needs of related
governments and the private sector related to the development of institutional and governanceframework and capacity, and identify issues for the early implementation of market mechanisms.
Furthermore, we will discover areas where implementation can be accelerated by collaborating withstakeholders such as the UNFCCC RCCs.

Date: Monday 7th March, 2022, 19:00-22:00 JST / 11:00-14:00 CET Meeting format: Webinar
Organizer: Ministry of the Environment, Japan (MOEJ) / Institute for Global Environmental Strategies (IGES)
Support: UNFCCC Secretariat, COP26 and COP27 Presidencies
AgendaTime

Contents / Speakers

5 minOpening remarks-10 minONO Hiroshi, Director General, Global Environment Bureau, MOEJ

Summary of the discussion at the 1st conference and matters to be considered at this Conference-UGA Maiko, Section Chief, Office of the Market Mechanisms, MOEJ

Capacity-building support for early implementation of Article 6 of the Paris Agreement
15 minExperience in the capacity-building programme for host countries
Achievements and experiences of the RCCs-130 minJens Radschinski, Head, UNFCCC Regional Collaboration Centre (RCC), Bangkok

Identification of capacity building activities for implementing Article 6(Moderator: KOAKUTSU Kazuhisa, Director of International Negotiations, Office of the Market
Mechanisms, MOEJ)(1) Article 6 reporting and corresponding adjustments; Mutual Learning Program for Enhanced
Transparency- HATTORI Tomohiko, Researcher, IGES
- Maria Carolina Urmeneta Labarca, Pacific Alliance, Head of Climate Change Divisions, Ministry of theEnvironment, Chile(2) Readiness activity for Article 6 : Institutional arrangement, MRV and peer learning
Bianca Gichangi, Coordinator, Eastern Africa Alliance on Carbon Markets and Climate Finance- Ousmane Fall Sarr, Coordinator, West African Alliance on Carbon Markets and Climate Finance(3) Pilot activity: Infrastructure development, domestic market policy and participation by private-sector
Virender Kumar Duggal, Principal Climate Change Specialist, Sustainable Development and Climate
Change Department, Asian Development BankWendy E. Hughes, Practice Manager, Carbon Markets and Innovation Climate Change Group, WorldBank
Dirk Forrister, President & CEO, The International Emissions Trading AssociationWrap-up

5 min-

Summary of discussion-Future activities for capacity building for Article 6

Closing remarks
SEGAWA Keiko, Deputy Director General of Global Environmental Bureau, MOEJ8