Implementation of Article
6.2 cooperation

Purpose of Article 6.2 cooperation• Article 6.2 and its related decisions adopted by
CMA governs internationally transferredmitigation outcomes (i.e. correspondingly
adjusted carbon credits) that can be used
towards NDC• Voluntary cooperation to jointly implement andachieve NDCs
• Should allow for higher ambition in mitigation
and adaptation actions• Should promote sustainable development andenvironmental integrityKnowing the purpose will guide the development of the policy forArticle 6.2 cooperation
Key policy questions to address to scale up Article 6.2 cooperation:
1. What are the mitigation outcomes can be internationally transferred to enable partnercountries to jointly achieve their NDCs?
2. What are the environmental integrity safeguards that need to be put in place?
3. How could sustainable development and co-benefits, including adaptation actions, bepromoted?
4. What are the key Article 6.2 processes that the country needs to put in place?
These are important policy questions that the country need to put in writing, to inspire confidence
amongst partner countries to enter into Article 6.2 cooperation and businesses to implement projects

To know what can be internationally transferred or not, the host country
needs to understand what are needed to achieve its NDC now and future

Abatement after the end of the authorised crediting period will be accrued to host country’s future NDCs•

The country need to have a good clarity of NDC implementation, to ascertain the potential that can be unlocked through Article
6.2 cooperation, which would otherwise not happened•

Proper governance structure to grant authorisation should be in place to facilitate implementation and reduce overselling• A designated national authority should be appointed to give authorisation (including authorisation statement) to avoid
uncontrolled authorisation• As the mitigation activities will lie outside of the ministry overseeing NDC implementation, there should be a proper
structure to ensure line agencies/ministries are consulted

There are various measures that can be put in place to minimise
overselling risk but need to ensure they do not inhibit cooperation•The following measures (non-exhaustive) can be put in place in combinationsReserve the lower hanging fruits for host country’s NDC use (e.g. a positive/negative list of mitigation activities)
Mitigation outcomes sharing between host country and partner country/project developers• Note: Non-correspondingly adjusted mitigation outcomes could still be sold as voluntary units internationally
Levy a corresponding adjustment fee, which could be use to implement additional mitigation and/or adaptation actions•

These measures should ideally be communicated transparently and be implemented in non-discriminatory way• Notwithstanding, there could mitigation activity type differentiation (e.g. $X/t fee for activity type A, $Y/t for activity type B),
depending on how much need to be done to deliver the abatement needed•

The implicit or explicit cost of the measures will impact the viability and feasibility to implement certain mitigation activity type in
the host country

Environmental integrity is critical to ensure credibility and integrity of theArticle 6.2 cooperation•

This is to prevent greenwashing and ensure that the use of high-quality carbon credits can truly advance global climate action
and ambition•

Use of carbon credits should also align with Paris Agreement Article 6.2 Guidance• Article 6 guidance adopted at COP-26 in November 2021 provides the framework and building blocks for a well-functioning
and credible international carbon market•

Although this could mean that volume of carbon credits generated will be lesser, higher quality and integrity carbon credits will
worth more, while ensuring the integrity of the national carbon market frameworkHost country need to put in place some systems and frameworks toensure environmental integrity and unlock co-benefits••

MRV System
Other than knowing the mitigation activities that will beeligible for Article 6.2 cooperation, the host country will
have to ensure that there are monitoring, reporting andverification system to account for the emissions in thesectors and gases covered by the mitigation activities
All mitigation outcomes that are internationally transferred
will need to be correspondingly adjusted, even if it isoutside the scope of the host country’s NDC• Therefore, if not done correctly, it could undermine
host country’s NDC achievement

Safeguards for indigenous population and local communities• Safeguards need to be put in place to ensure indigenous
population and local communities are not sidelined andwill benefit from the implementation mitigation activities•

This will also ensure the project developers will act
honestly and transparently, while yielding co-benefits forindigenous population and local communities•

Some measures could include stakeholder consultations,
free prior informed consent and environmental impact
assessment

Host country will also need to build up capabilities to align with Article
6.2 requirements
This further reinforces the need for a designated national authority; Some capabilities include:
Registry to track and account for ITMO

Article 6 reporting (e.g. initial report)

Paragraph 18 in Annex of Decision 2/CMA 38

For Article 6.2-aligned mitigation activities to be implemented, theguidelines, framework and rules need to be transparent and clear• As these mitigation activities are implemented by private sector partners, there needs to be incentive for them tosink in the investments• These incentives can be created by:• Business certainty through providing guidelines, framework and rules (e.g. certainty for corresponding
adjustments post-authorisation)• Good business environment (e.g. clear property rights, non-discriminatory treatment)• Justified implicit and explicit fees and charges
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Singapore’s approach towards Article 6.2 cooperation with hostcountries•

High environmental integrity so that units transacted will
be seen as credible•

Delivering mitigation in global emissions throughcancelling emission reduction credits (2% OMGE)•Involvement of local stakeholders and support local
adaptation (5% Share of Proceeds)•Leverage existing standards (e.g. Gold Standard, Verra)
where possible•

Bring onboard expertise in finance, technology andcapacity building
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Singapore’s authorisation framework under our cooperation with hostcountries• Singapore will authorise the project (i.e. cooperative approaches), based on environmental integrity criteria
which is being distilled into a list of eligible carbon crediting programmes and methodologies• The list will be common denominator with host countries’ environmental integrity criteria and activities
that they can authorise as ITMOs• Singapore’s designated national authority, National Environment Agency, will assess project applications
submitted by project proponents against the eligibility list
• If positive assessment, NEA will issue a Letter of Authorisation• For a project to be authorised as a cooperative approach, the host country will also have to authorise theproject; Then, both countries can submit initial report for the cooperative approach to UNFCCC• The host country will assess whether to give authorisation on the basis of its national policies,
framework and legislation

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Singapore’s eligbility criteria• The Eligibility Criteria requires ICCs to comply with rules under Article 6 of the ParisAgreement, and meet seven principles to demonstrate high environmental integrity
 To comply with Article 6 of the Paris Agreement, the certified emissions reductions or removals(represented by the ICCs) must have occurred between 1 January 2021 and 31 December 2030,
and authorised by the host country for corresponding adjustments Seven principles to demonstrate high environmental integrity:

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Singapore’s eligibility list of carbon crediting programmes andmethodologies• This lists the programmes and methodologies that adhere to the Eligibility Criteria• ICCs that come under the listed programmes and methodologies can be used by companies inSingapore for carbon tax offset
 Currently, the Eligibility List only contains Papua New Guinea, as the programmes andmethodologies have to meet the host country’s criteria as well, and agreed as part of a legallybinding Implementation Agreement

Host country Carbon Crediting Programme

Methodologies
All active methodologies published before 31 March 2023 except:
Gold Standard for the Global•
Those under the “Land Use and Forestry & Agriculture” category of GS4GG;
Goals (GS4GG)•…
All active methodologies published before 31 March 2023 except (i) VM0044 Methodology for Biochar Utilization inSoil and Non-Soil Applications, v1.1; (ii) methodologies under the “Sectoral Scope 14” category of VCS, with these
Verified Carbon Standard (VCS) allowable exceptions:Papua New•
Scenario 2a and 3 of VCS Jurisdictional and Nested REDD+ (JNR) framework;
Guinea•…
All active methodologies published before 31 March 2023, except methodologies under “Sectoral Scope 3 (LandAmerican Carbon Registry (ACR)
Use, Land Use Change and Forestry)” category of ACR.
All active methodologies published before 31 March 2023, except the following project types or methodologies:•Nuclear energy;
Global Carbon Council (GCC)•…

• The Eligibility List will be reviewed annually and updated as necessary to maintain relevance13