Launching event of theParis Agreement Article 6 Implementation Partnership:
Towards high in integrity carbon markets

Summary of the event

November 16th, 2022 13:00-14:00
Japan Pavilion of COP27 Sharm el Sheik, Egypt

Organized by:
Ministry of the Environment, Japan (MOE Japan)

Summary of the event
The early and robust implementation of the 'high integrity carbon market' is necessary for theadvancement of global emissions reductions. Thus, the Ministry of the Environment, Japanestablished the "Paris Agreement Article 6 Implementation Partnership" as an international
initiative. Through this Partnership, support for Article 6 capacity building, information sharing, andcollaborations to overcome challenges will be enhanced.
In this event held on November 16th, 2022 at the Japan Pavilion of COP27 in Sharm el Sheik, Egypt,
the Partnership was launched and promoted with various speakers.
For more information regarding the Partnership, please visit the "Paris Agreement Article 6Implementation Partnership" website:
https://A6partnership.org/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.
1Launch Speech for the Paris Agreement Article 6 Implementation Partnership
H.E. Mr. NISHIMURA Akihiro, Minister of the Environment, Japan

Thank you for taking time out of your busy schedule to attend the launching event of the "ParisAgreement Article 6 Implementation Partnership" for the establishment of a high integrity carbonmarkets.

To achieve the 1.5°C target of the Paris Agreement, it is essential for the entire world to makefurther emission reductions. In addition, the establishment of a "high integrity carbon market" inline with Article 6 of the Paris Agreement will attract more private investments.

More than 100 countries are interested in implementing Article 6, and there is a strong need tobuild capacity and to establish systems for Article 6 implementation.

In order to respond effectively to these needs, it is important to collaborate internationally,
sharing information among a wide range of stakeholders, including international organizations,research institutions, and the private sector.

Considering these circumstances, and to promote early and steady implementation of Article 6,
I am pleased to announce here today the launch of the "Paris Agreement Article 6
Implementation Partnership" for the establishment of a high integrity carbon market, in thepresence of relevant organizations and countries.

At the beginning of this launching event (November 16), we had 63 Partner countries andinstitutions. We look forward to working with you to further deepen our collaboration to build ahigh integrity carbon market through the implementation of Article 6.

Minister NISHIMURA giving the launching speech2Photo Session

Group photos with speakers and high-level participants
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Keynote statements from Partners of the Paris Agreement Article 6 Implementation
Partnership
Mr. Simon STIELL, United Nations Framework Convention on Climate Change (UNFCCC) ExecutiveSecretary Article 6 is essential for achieving emission reductions at speed and scale.
 The UNFCCC secretariat supports to build capacity of the Parties, especially developing Parties
so that they can fully benefit from Article 6. The UNFCCC implements a capacity building
programme, which is developed by close consultation with Parties, through our network of theRegional Collaboration Centre (RCC).
 We will work with several key objectives in mind:
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Understanding institutional needs
Participation requirements established in Glasgow are fully met
Availability of well-structured information
Enhance capacity of baseline monitoring and reporting➢ Ensuring capacity retention
We must move forward the transition started in Glasgow providing clear guidance and process
here in Sharm El Sheikh. Parties made some progress. They are shifting gears to re-prioritizing
objectives. I urged them to close designing by the end of this week.
Implementation of Article 6 gives us a tool to move at a much faster pace to get to the finish line,
which is only 8 years from now.
Effective and swift implementation of Article 6 throughout the globe can be a game changer inour efforts to tackle global warming.

Mr. Simon STIELL giving the keynote statement4H.E. Ms. Grace FU, Minister for Sustainability and the Environment, Singapore
 Norway and Singapore with the strong support from our team of Japan, look forward to moving
things forward.
 The rulebook provides a common framework for Parties to cooperate and meet their targets,advancing climate actions and enhancing climate finance.
 These are coming together to operationalize Article 6 with complimentary initiatives such as theArticle 6 Implementation Partnership led by Japan.
 This would enable high integrity carbon markets and provide new pathways to achieve the goalsof the Paris Agreement.
 The progress on carbon markets along with more investment in low carbon technologies

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worldwide gives confidence to Singapore to raise its ambition and announce our commitment toachieve net zero by 2030.
To harness the potential of carbon markets, we need to lower the barriers of entering the marketfor Parties to participate.
Through the Singapore Cooperation Programme, Singapore trained close to 150,000 officials
from developing countries.
Last month, we launched Sustainability Action Package (SAP) to cover sustainability more
extensively.
Singapore and New Zealand jointly organized a workshop to support ASEAN members to enhanceknowledge transfer.
Singapore together with World Bank and IETA, will launch Climate Action Data Trust which aims
to reduce the risk of double counting and bring transparency to carbon markets.
I would like to thank Japan for advancing cooperation on Article 6.

H.E. Ms. Grace FU giving the keynote statement

5Mr. Stefan WENZEL, Parliamentarian State Secretary of the German Ministry for Economic Affairs andClimate Action, Germany Article 6 Implementation Partnership is supported by Germany.
 Germany is prepared to share its activities in the field of capacity building supporting.
 Let us keep the momentum and let us enable Parties to get access to the UNFCCC based carbonmarkets.
 I would like to underline Germany’s position on the CDM.
➢ Germany will not engage in outdated mechanism which is not designed to raise ambition➢ Ongoing CDM projects should be transitioned to Article 6 to use updated methodologies➢ Article 6.4 is a new mechanism and should not be delayed by CDM

Germany and EU do not want to weaken our climate goals by substituting our mitigation
contribution by using offsets.
Use of Article 6 is relevant for Germany in the following ways:➢ Strengthen developing countries’ capacity to accelerate transformation to carbon neutrality➢ Appreciate that many countries are developing long term low carbon strategies➢ Long-term low carbon strategies are the right way to utilize Article 6 cooperation to achievecarbon neutrality faster

Mr. Stefan WENZEL giving the keynote statement

6H.E. Mr. James SHAW, Minister for Climate Change, and Associate Minister for Environment(Biodiversity), New Zealand New Zealand supports Article 6 cooperative approaches.
 Our NDC target by 2030 is more ambitious than what we can do domestically.
 Capacity building is needed for Article 6 process and market readiness to further build policy
foundations which fits in line with NDCs, Long-term Strategies, and Sustainable development.
 A lot of technical knowledge is necessary. It can be a burden for developing countries.
 We need a regional approach, which is the partnership launched by Japan. NZ supports pacificnations.

H.E. Mr. James SHAW giving the keynote statement

7Mr. Daniel WESTLÉN, State Secretary to Minister for Climate and the Environment, Sweden Climate crisis requires global cooperation. Carbon finance alone does not achieve the ParisAgreement, so the carbon market has an important role to mobilize finance.
 At the COP26, we agreed on the Article 6 rulebook, now implementation is needed and itrequires cooperation for capacity building.
 We welcome Japanese Article 6 Implementation Partnership. Sweden has a high ambition, net
zero by 2045, which requires cooperation with other countries to achieve it, and Article 6 is oneof the cooperation.
 Article 6 also supports other countries to reach their goals as well. We have supported CDM
projects under the Kyoto protocol.
We have been implementing Article 6 support from 2018 and have built bilateral agreementswith Ghana, Dominican Republic, and Nepal on Article 6 cooperative approaches.

Mr. Daniel WESTLÉN giving the keynote statement8H.E. Mr. Madis KALLAS, Minister of the Environment, Estonia Article 6 builds common rules for carbon markets and we would like to thank Japan to establish
Article 6 implementation partnership to make high integrity carbon markets.
 To make high integrity carbon markets, transparency is the key. All stakeholders including local
community, indigenous people, and women should be in the center.
 Estonia has been moving toward digitalization and has been increasing finance for green
technologies to developing countries.
 It is important to share knowledge and experience on mitigation and adaptation actions toother countries. We are ready to share our experience for creating high integrity carbonmarkets.

H.E. Mr. Madis KALLAS giving the keynote statement

9Mr. Trigg TALLEY, Special Presidential Envoy for Climate, U.S. Department of State We need to invest to build capacity building to make high integrity carbon markets and tosupport countries’ ambitions.
 The USA made bilateral and global agreements with countries on sustainable landscape andREDD+ for enabling them to issue credits.
 We are also integrating Article 6 reporting into our transparency support, where the EPA has aParis Agreement Transparency Accelerator.
 We have to provide information to countries about carbon markets. We are engaging withvarious voluntary carbon market initiatives. Special Presidential Envoy for Climate, John Kerry,has announced a new programme to accelerate energy transition related to voluntary carbon
market initiatives.

Mr. Trigg TALLEY giving the keynote statement

10Mr. Dirk FORRISTER, CEO and President of the International Emissions Trading Association (IETA) We thank Japan in leading this Partnership to deliver the Paris Agreement.
 Article 6 can enable the private sector to involve climate change around the word.
 IETA educates the business sector on how they can set up systems to engage in Article 6cooperative approaches.
 This is how we make sure of system integrity. We are also interested in the data side of this,and climate action data is a basis of trust.
 It helps us to identity overlaps and engagement where it is needed.
 Many countries are interested in engaging Article 6 to achieve their ambitions.
 We are committed to work together to deliver solutions.

Mr. Dirk FORRISTER giving the keynote statement

11Ms. Jennifer SARA, Global Director for Climate Change, World Bank
 We support this Partnership. After many years of negotiations, the Article 6 rulebook was agreed
at COP26 and now the momentum has been built to operationalize the Article 6.
 Over two thirds of NDCs now include carbon market and carbon pricing as mitigation tools.
 Capacity building and infrastructure at the domestic level is key to operationalize Article 6.
 We have been working in international markets for a long time, starting with the Kyoto Protocol.
 We provided technical assistance for over 20 developing and emerging countries through thePartnership for Market Readiness (PMR).
 Now we have the Partnership for Market Implementation (PMI) which supports direct
implementation for 17 countries from African, Pacific, and Latin American countries.
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We engage with developing innovative methods and tools to help operationalize Article 6 andClimate Warehouse is one of them, a digital platform to facilitate credit transactions.
We are also supporting countries without institutional capacities to deliver high quality
verifiable emission reductions.

Ms. Jennifer SARA giving the keynote statement
Mr. Alessandro MODIANO, Director General, Directorate General for European and International
Activity, Ministry of Ecological Transition, Italy
 We have just decided to join this Partnership. We look forward to further cooperation.

Mr. Alessandro MODIANO giving the keynote statement
12Overview of the Article 6 Implementation Partnership
Mr. ONO Hiroshi, Vice Minister for Global Environmental Affairs, Ministry of the Environment, Japan We concluded the long negotiation of Article 6 rules and completed the Paris rule book in COP26.
More than 120 countries have expressed their willingness to use Article 6 in their NDCs.
 The implementation of the Article 6 is now entering a new stage of real implementation.
Implementing Article 6 requires certain national institutional and technical capacities. Therefore,capacity building plays a significant role in its appropriate implementation.
 Experts have estimated that the implementation of Article 6 could lead to a reduction of anadditional 4 to 12 billion tCO2 emission per year by 2030.
 This corresponds to 10% - 40% of global CO2 emissions in 2018 so that it has a significant potential

to fill the gap in 2030, while stimulating economic growth by creating a new market.
One estimation shows that the market size of emissions trading is expected to reach US$300-400
billion in 2030.
Results of surveys on capacity building for Article 6 implementation have led us to the conclusionthat a forum for sharing information about various capacity building programs are needed.
In light of this, we have launched the Article 6 Implementation today.
Objectives, areas of work, roadmap and activities of the Partnership are as shown in the slides.
The number of Partner countries and organizations is still growing.
Those who are not yet a Partner is welcome to register.
We look forward to working with you for the implementation of Article 6.

Mr. ONO Hiroshi presenting the outline of the Partnership

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Presentation slides

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Annex: Agenda

Launching Event of the Paris Agreement
Article 6 Implementation Partnership
Towards high integrity carbon markets
November 16th 13:00 to 14:00 (Egypt local time) at Japan Pavilion (Zone B P23), COP27

AgendaModerator: Mr. KOAKUTSU Kazuhisa, Ministry of the Environment, Japan

13:00-13:05 Launch Speech for the Paris Agreement Article 6Implementation Partnership
Speaker: H.E. Mr. NISHIMURA Akihiro, Minister of the Environment, Japan

13:05-13:10 Photo Session (Keynote speakers and Ministers of Partner countries)
13:10-13:50 Keynote statements from Partners of the Paris Agreement
Article 6 Implementation Partnership
13:50-14:00 Overview of the Article 6 Implementation Partnership
Speaker: Mr. ONO Hiroshi, Vice Minister for Global Environmental Affairs, Ministry ofthe Environment, Japan18