Introduction of A6IP capacity building tools(Key features, outputs and expected uses)

Paris Agreement Article 6
Implementation Partnership Center

A6IP Working Groups on Authorization, Tracking and Reporting
6 WGs have been organized in 2023

• Authorization – 1st WG (Mar 15th, 2023), 2nd WG (Sep 26th, 2023)• Tracking – 1st WG (May 10th, 2023), 2nd WG (Nov 21st, 2023)• Reporting – 1st WG (Apr 19th, 2023), 2nd WG (Oct 18th, 2023)

Objectives• Exchange information from partner countries and organizations
involved in authorization, tracking and reporting of Article 6• Promote the development of tools for authorization, tracking andreportingParticipants

Broad participation from partner countries and organizations

2

Timeline of activities
2023

Activities
Working
Groups

1st meetings
2nd meetings

Q1

Q2

A

R T

2024

Q3

Q4

A

R T

Future meetings
CB Tools

A – Authorization
T – Tracking
R – ReportingJ – Joint meeting

Q1

J

Q2

Q3

2025
Q4

Q1

Q2

Q3

Q4

(2-3 WGs/y)Develop 1st draft
Share & discuss
Reflect on feedbacks
Present 1st output

COP28

Experts engagement
Utilization – country support
Continuous development

3Overview of A6IP Capacity Building Tools
The A6IP CB Tools covers the following elements (non-sequential):

Key elements

Introduction of Article 6
Rulebook

What it covers

Background information on relevant CMA
decisions, guidelines and formats.

How-to Guide
Step-by-step assistance to set(Step-by-step assistance) up/implement each component of Article 6
rules, with instructions and templates forconsideration

Showcase(Practice on the ground)
Article 6 Library(Further reading)Regular updates

Includes new decisions andemerging/broadly accepted
concepts
Any revision/addition basedon lessons learnt from
deploying the materials topartner countries

Examples of practical implementation (casestudies) of countries and cooperating
partners

Additional/new casestudiesCompilation of useful
resources/tools/databases provided bypartner organizations

Additional available
resources
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A6IP Capacity Building Support Tools:
Authorization
Abdessalem Rabhi
Program Manager
Paris Agreement Article 6
Implementation Partnership Center

A6IP Capacity Building Support – for Authorization
Process

What to do

Target groups or works

Readiness

Provide supports to set strategies and policies

Designated National Authorities (DNAs)
Government organizations

Institutional Arrangements

Authorization Arrangements

Authorization Arrangements

Identify relevant members and/or ministries
Develop Article 6 policy frameworks
Know what to authorize
Identify necessary information and procedures

Changes in authorization status or contracts,
where necessary

DNAs
Government organizations

Bilateral cooperation
Article 6.4 mechanism
Independent Standards

Development of procedures and rules (optional)

I. Introduction

Overall Content(Authorization inarticle 6 context)

I.1. The Paris Agreement (PA) and the Article 6
I.2. Article 6, paragraph 3: the use of ITMOs shall be authorized
I.3. Authorization in Article 6 guidance: Annex, Decision 2/CMA.3

II. Authorization
process: Step by
Step guideII.1. Participation requirements
1.1 Arrangements for authorizing the use of ITMOs

III. Authorization
Examples:Practical cases

II.2. Authorization of ITMOs
2.1 Authorization of ITMOs for NDCs or OIMP
2.2 Definition of first transfer for OIMP
2.3 Authorization of entities
III. Authorization Examples: Practical cases

7Authorization in Article 6 Rule
Authorization refers to authorizing the use of ITMOs for:
 Nationally Determined Contributions (NDCs)
 Other International Mitigation Purposes (OIMPs)
 Authorization
 A host country authorizes:
 ITMOs for use towards the achievement of an NDC,
 ITMOs for use for other international mitigation purposes A host country needs to specify a “first transfer”:
 For use towards the achievement of an NDC, the first international transfer of the mitigation
outcome For use for OIMPs, (1) the authorization, (2) the issuance, or (3) the use or cancellation of the
mitigation outcome
 Authorization for reporting Initial report Annual information
 Regular information

8

Example1:Institutional and Administrative Framework: Cambodia
Ministry of Environment(As the permanent National Authority for GHG ER
Chair

Function

The Chair of the NCSD / Minister of Environmento Institutional Arrangement:
It could be composed of an
oversight Body and an Art.6
Unit.

 Receive requests for the No
Objection of GHG ER
projects, and requests forthe authorization andpositive examination of
GHG ERs on behalf of the
National Authority and track
such requests
 Prepare relevant reports andinformation to the UNFCCC
 Support the assessment andmonitoring of activities of
the National Authority
 Support information
management of the National
Registry of the GHG ER(once operationalized),Technical
Group

Coordinator Sign Letters of No Objection for GHG ER projects
 Make determinations on requests for authorization of
GHG Ers
 Submit Letters of Authorization for GHG ERs to the
Chair of the National Authority for signing.
 Notify GHG ER, project proponents of the rejection ofrequests for No Objection, authorization, and positive
examination,
 Recruit or invite international and national experts toassist the Technical Group Monitor compliance with the provisions of this Article 6
Operations Manual, and recommend to the Chair to issue sanctions as needed Submit relevant reports and information to the
UNFCCC

Assist the Coordinator in all
related administrative matters.

Function

Secretariat

Functiono Administrative frameworks
Address multiple issues, suchas:
 Processes for project
developers to request
project approval andauthorization of credits, Template documents,
 Establishing and collecting
fees for different activities
 Procedures for registering
activities with any national
infrastructure.

 Sign the letters of authorization for theinternational transfer of GHG ERs under
Article 6, upon recommendation from the
Coordinator of the National Authority.

Letter of Authorization

Function Institutional Arrangements
and Administrative
Frameworks generally build
upon countries’ CDM
structures and aredeveloped further, if
necessary, to meet therequirements of Art.6.

 Review
and assessrequests
for theauthorizati
on of GHG
ERs

Produce a technicalassessment report.

9

Example2. Arrangements for authorization: Cambodia
Pre-engagement in
Art.6

Engagement in Art.6
Reporting andtracking-A6-related strategy is in place-Participation requirement met-Composition, structure, role,and functionality of NA are set.
-A positive list ofactivities/projects is set

Annualinformation
and Regular
information-Composition, structure, role,and functionality of the National
Mechanism are set (as part ofthe institutional arrangement)

UNFCCC
Secretariat

InitialReportReference: Author based on Cambodia A6 Framework

Annualinformation
and Regular
information

10

A6IP Capacity Building Support Tools:
Tracking
Toshinori Hamaguchi
Program Manager
Paris Agreement Article 6
Implementation Partnership Center

A6IP Capacity Building Support – for Tracking
A6IP could compile information on different options available for tracking and introduce relevant options to partner countries.

UNFCCCWorldBank

2nd Tracking WG

A6IP to shareoptions for
tracking

UNDP
supportIndependent
standards andmechanisms(Gold Standard,
Verra, JCM etc.)

Various Activities

Country
Experiences
Case
Studies

A6IP to facilitate
introductions to relevant
partner countries

2. Activities on Tracking WG by A6IP
Outline of Supporting Tool for Tracking:

1. Rulebook on Article 6.2 tracking
Guidance on tracking (Decision 2/CMA.3, paragraph 29-36)(1) Function of Tracking(2) Function of Article 6 database(3) Function of Centralized accounting and reporting platform
Guidance relating to registries (Decision 6/CMA.4, Annex I)

i. Form, functions and processes
ii. Tracking and recording methodsiii. Actions and records
iv. Interoperability
13

2. Activities on Tracking WG by A6IP
Outline of Supporting Tool for Tracking:
2. How-to Guide (Step-by-step guide)
Step 1: Determine the functionality needs for tracking in the country
Step 2: Consider possible options for tracking and recording
Step 3: Use of tracking system for A6 reporting arrangements(Optional: Connect the registry with Article 6.4 registry)(Optional: Connect the registry with open database for enhanced transparency)
3. Showcases (Practice on the ground)1) Countries having the registry operational
2) Major international projects on development of the registry system
14

2. Activities on Tracking WG by A6IP
Development of A6 Tracking and recording Factsheets
Objectives: To share information and better understand on tracking andrecording arrangement for Article 6 implementation among partner countries
and institutions.
Collaborators: A6IP partner countries having the national registries andinternational organizations implementing projects on development of theregistries to implement the Article 6.
Production period: Current to throughout 2024.
15

2. Activities on Tracking WG by A6IP

Registry Factsheets (2-3 slides per registry):
Slide 1: General information
Registry name
Administrator
Registry type[National registry] / [International registry] / [Third party registry] / [Independent crediting registry]

Using countries
General description(no more than 100 words)

Credit types
Mandatory Article 6.2
functions

Assign unique
identifiers

Recordauthorization

Track ITMOs data

Accounts for
ITMOs

Additional functions

Support domestic
CPIs

Enabletransactions

Allow
customization

Claim disclosure

AEF autoprefilling

Interoperability method(s)Governing rules, guidelines
Public access link16

2. Activities on Tracking WG by A6IP

Registry Factsheets (2-3 slides per registry):
Slide 2: Operation flowcharts/photos (with textual description as necessary)

Slide 3: Development aspects (if applicable)
Brief description of registrydevelopment process

IT service provider (ifapplicable)
Development cost (estimates)

Operational cost (estimates)

Key consideration/ lessons
learned (if any)17

2. Activities on Tracking WG by A6IP

Example of a Registry Factsheet
Registry nameThailand Carbon Credit Registry

Administrator

Thailand Greenhouse Gas Management Organization (Public Organization)

Registry type

National registry

Using countries

Thailand

General description

The Thailand Carbon Credit Registry was established to record issuance and transactions ofcarbon credits from Thailand Voluntary Emission Reduction (T-VER) Program which waslaunched in 2014. The registry was designed based on the data exchange standards of the
UNFCCC. From 2016, the registry also serves as the Thai registry from the Joint Crediting
Mechanism (JCM) between Thailand and Japan. In 2023, the registry system underwent an
upgrade to enable execution of Article 6.2 transactions in Thailand as well as to comply withCORSIA requirements.
TVERs, JCM credits

Credit types
Mandatory Article 6.2
functions

Assign unique
identifiers

Recordauthorization

Track ITMOs
data

Accounts for
ITMOs









18

2. Activities on Tracking WG by A6IP

Example of a Registry Factsheet
Additional functions

Interoperability method(s)Supportdomestic CPIs

Enabletransactions

Allow
customization

Claim disclosure

AEF autoprefilling







PartlyNot in place

Governing rules, guidelines

The “first international transfer” is executed in the registry by applying a cancellation-torecreation method. The transferred credits will be cancelled into a dedicated ITMO
cancellation account.
- Regulation of the Board of Directors of Thailand Greenhouse Gas Management
Organization re: rules on registration of sale, purchase and transfer of carbon credit, andany relevant orders and notifications.
- The user manual is available on the registry public page.

Public access link

https://registry.tgo.or.th/en

19

A6IP Capacity Building Support Tools:
Reporting
Chatthep Chanyam
Technical Officer
Paris Agreement Article 6
Implementation Partnership Center

A6IP Capacity Building Support Tools – for Reporting
Reporting requirements
in Article 6 and the formats
decided at COP27

Potential capacity
building support
provided by A6IP

Key timings

Initial Report Outline(6/CMA.4 Annex V.)

Illustrative texts,
guidance, examples,
lessons learned

The manual to be developed by the UNFCCC
Secretariat IR to submit no later thanauthorization of ITMOs or with the next BTR

Annual Information Draft AEF(6/CMA.4 Annex VII.)

Example cases,
Improvement of thedraft AEF

AEF to be finalized at COP29
AI to submit by April ‘24
on an annual basis

Regular Information Outline(6/CMA.4 Annex VI.)

Illustrative texts,
guidance, examples,
lessons learned

RI to submit no later than 31 Dec ‘24
as an annex to its BTR

21

Material Outline for Reporting CB Tools
Background ofReporting in Art. 6•Article 6 Decision•Reporting Obligation•Linkages between ETF and Art.6•Overview of reporting

Reporting Portal• Centralized Accounting
and Reporting Platform CARP (interim solution)• Consistency Check• Article 6 TER Explained

Preparing Information• Understanding of information required tobe reported• Identifying source of information;• What is readily available• Where is information?
• What information requires policy
consideration/ decision-making?

Reporting Process &How to report• What is process within the
country to formulate and havethe report approved andsubmitted? – Institutional
Arrangement

Drafting Exercise

Annex• Learn from examples• Enhance learning/ capacitywith other tools• Excel sheets developed• Corresponding Adjustment
Explain• Exercise for CA• NDC Accounting Explained

Reporting Timeline• Initial Reports• Annual Information• Regular Information

Principle  Transparency, Accuracy, Completeness, Consistency, and Comparability (TACCC)
22

Article 6.2 Initial Report
I. Participation
responsibilities

What?

When?

How / Where?

II. Description of theParty’s NDC

III. [Accounting
information]

IV. Cooperative
approach

Party to PA

Target and description

ITMO metrics

A copy of authorization

Communicate NDC

Target year/period

CA method

Description, duration, parties

Authorization arrangements

Referencepoint/level/baseline

Quantification of NDC

Expected mitigation

Tracking arrangements

Time frame

Authorized entities

Most recent GHG inventory

Scope and coverage

Environmental integrity

NDC, LT-LEDS, Paris goals…

Additional description

No later than authorization of ITMOs or where practical in conjunction with the next due BTR

Initial report template
Available on CARP

CARP (Interim solution)
23

Annual information

What?

Authorization for NDCs

Holdings

Authorization for OIMPs

Cancellation

First transfer
Transfer

Voluntary cancellation(OMGE)
Use towards NDC

Acquisition

When?

How / Where?

Accompanying information
The cooperative approach

Sector(s) and activity type(s)The OIMPs authorized by the Party

The first transferring
Party

Vintage year

The unique identifiers

The using Party or authorized entity(ies)No later than 15 April of the following year

Draft agreed electronic
format (AEF)

Decision 6/CMA.4, annex VII

For record in Article 6
Database (in development)24

Regular information
Participation in cooperative
approach

What?

Information on each cooperative
approachParticipation responsibilities

Contribute to mitigation/NDC

Annual emissions and removals

Updates to previously provided
information

Environmental integrity

Annual quantity of ITMOs

Information on authorizations

Measurement of mitigation outcomes

Total quantitative CAs

Information on CAs

Avoid negative impacts, Human rights

An annual emissions balance

Information on avoiding double use

Sustainable development…
Included in the structured summary

…

When?

How / Where?

Annual information

No later than 31 December of the relevant year (2024, 2026, 2028, …)

BTR Annex IV outline

Decision 6/CMA.4, annex VI

Structured summary

To be available as CTF toolin ETF Reporting Tools

Submission
portal25

Preparing Information for Initial Report
Initial/ Updated Initial Report contains of 4 sections;
The first section includes participating country compliance of the participation
requirements).
The second section contains information about the NDC (target, types oftargets, reference levels, scope, and coverage, implementation periods, intention
to use cooperative approaches, etc).
The third section concerns the accounting of ITMOs and accounting of the NDC,
contains information on ITMO metrics, the method for applying corresponding
adjustments, the method for quantification of the NDC.
The fourth section includes information specific to the cooperative approach:• Authorization by the participating country.
• Description and duration of the cooperative approach.
• Expected mitigation per year of the cooperative approach.
• Countries involved in the cooperative approach.
• Authorized entities.
• Description of how the cooperative approach ensures environmental integrity.

26

Sample of Guidance for Preparing IR
I.

Reporting Items

Guidance

Information on how the Party ensures that it is a Party

Briefly state your country's status as a Party to the Paris
Agreement, including the date of ratification/accession.

A. to the Paris Agreement (para. 18(a), para. 4(a), to be

updated by para. 21(a))
Information on how the Party ensures that it has
prepared, communicated and is maintaining an NDC in
accordance with Article 4, paragraph 2 (para. 18(a),B. para. 4(b), to be updated by para. 21(a))

Reference

Participation responsibilities (para. 21(a))
Paris Agreement - Status of Ratification:

NDC Registry: https://unfccc.int/NDCREG
Provide a summary of your country's Nationally
Determined Contribution (NDC), including its target, type(e.g., absolute, intensity-based), reference level, scope,
coverage, implementation period, and intention to use
Article 6 mechanisms.

Information on how the Party ensures it has Explain your country's process for authorizing the use of Subject to Country
arrangements in place for authorizing the use of ITMOs Internationally Transferred Mitigation Outcomes (ITMOs)
towards achievement of NDCs pursuant to Article 6, towards NDC achievement. This includes details onparagraph 3 (para. 18(a), para. 4(c), to be updated by eligible activities, authorization criteria, and responsible
entities.
C. para. 21(a))

Information on how the Party ensures it has Describe your country's system for tracking ITMOs,
arrangements in place that are consistent with the ensuring consistency with Article 6.2 guidance and CMA
Article 6, paragraph 2, guidance and relevant decisions decisions. Explain how ITMOs are issued, transferred,of the CMA for tracking ITMOs (para. 18(a), para. 4(d), to cancelled, and avoided double counting.
D. be updated by para. 21(a))

E.

Information on whether the most recent national Provide the link to your most recent national inventory
inventory report required in accordance with decision report submitted under decision 18/CMA.1. Briefly
18/CMA.1 has been provided (para. 18(a), para. 4(e), to summarize the key findings and their relevance to yourbe updated by para. 21(a))
participation in Article 6 mechanisms.

Subject to country

Illustrative Texts

Sample[Country A] ratified the Paris Agreement on Ghana ratified the Paris Agreement in September 2016
[Day/Month/Year] and continues to be a Party to the and is a Party to the Paris Agreement
thereupon.
Paris Agreement.
[Country A] communicated its [updated] NDC on Switzerland has submitted the latest version of its[Day/Month/Year] and continues to implement the updated NDC on December 17th 2021.1[updated] NDC [in accordance with national plans and Switzerland’s national CO2 Acts (2022-24 in force; 202520302 under Parliamentary debate)
policies].
anchor Switzerland’s emission reduction targets anddefine domestic measures.
[CountryA]established/mandated[thecompetent Switzerland’s competent authority for authorizing theauthority/body] to consider/provide/approve authorization of use of ITMOs is the Federal Department of Environment,
the use of mitigation outcomes generated from mitigation Transport, Energy and Communications acting throughactivities implemented in the context of Article 6 of the Paristhe Federal Office for the Environment (FOEN). The
Agreement between [Country A] and cooperating partnercompetence is delegated to the FOEN through thecountries.
- The authorization is provided in accordance with [reference to bilateral agreements as well as Switzerland’s national
law/regulations/policy documents], based on [criteria established CO2 Act. The bilateral agreements and theby ...].
national CO2 legislation include eligibility requirements- Authorization statements are made publicly available and can for the authorizations
be found on <link to website>.
[Country A] established/uses [a registry title] to track mitigation Thailand uses the Thailand Carbon Credit Registry administered by Thailand Greenhouse
Gas Management Organization (Public Organization) for the purpose of tracking andoutcomes generated from mitigation activities implemented in recording of ITMOs. The Thailand Carbon Credit Registry records issuance of mitigation
the context of Article 6 of the Paris Agreement. [The registry] outcomes in a form of carbon credits (in blocks) with unique identifiers and records
relating to carbon credits, including any transfer, acquisition, cancellation, andperforms the functions of recording [issuances and] transactions, transactions
use. The authorization status is recorded and tracked through the unique identifiers of the
including transfers, acquisitions, cancellations, [retirements] and carbon credits. The first transfer is executed by applying a cancellation-to-recreation
use of mitigation outcomes, each assigned with a unique method for use towards NDC and a cancellation for OIMPs. The Thailand Carbon Credit
Registry operates in accordance with the regulation of the Board of Directors of Thailand
identifier. [The authorization status is recorded through ...]
Greenhouse Gas Management Organization re: rules on registration of sale, purchase and- [The registry] is operated in accordance with [reference to law, transfer of carbon credit and any relevant orders and notifications. Further information canregulations, or relevant registry specification documents] and can be found on https://registry.tgo.or.th/en/.
be accessed from <link to

UNFCCC, National Inventory Submissions.
[Country A] provided its most recent national inventory Thailand provides its most recent national inventory in
UNFCCC, National Communication submissions from non- report in [the [Xth] National Communication/[Xth] the Fourth Biennial Update Report (BUR4) communicatedAnnex I Parties
Biennial
UpdateReport]submitted
on to the UNFCCC secretariat on 28 December 2022 whichhttps://unfccc.int/non-annex-I-NCsUNFCCC[Day/Month/Year], covering national greenhouse gas provides a national inventory of anthropogenic emissions
Biennial Update Report submissions from non-Annex Iby sources and removals by sinks of GHGs frominventories from [Year] until [Year].
Parties2000 – 2019.
https://unfccc.int/BURs"

Information on how the Party ensures participation Explain how your participation in Article 6 mechanisms Country’s NDC
contributes to the implementation of its NDC and long- contributes to achieving your NDC targets and, if
term low-emission development strategy, if it has applicable, your Long-Term Low Emissions Development
submitted one, and the long-term goals of the Paris Strategy (LT-LEDS). Highlight specific projects, outcomes,
F. Agreement (para. 18(a), para. 4(f), to be updated by and their estimated emission reductions.
para. 21(a))- [Country A] intends to use Article 6 to promote implementation of mitigation activities in Thailand intends to achieve the unconditional mitigation under the NDC through domestic
addition to its domestic efforts which generates emission reductions in [Country A], part of efforts, while recognizing the important role of international market-based cooperation incontributing to the mitigation of greenhouse gas emissions and promoting sustainable
which are maintained in the country and contribute to the implementation of its NDC.
- The scope of activities implemented/authorized by [Country A] under Article 6 of the Paris development. Thailand welcomes discussion to explore international market-based
Agreement aligns with the national prorities and climate policies of [Country A] and support cooperation in the context of Article 6 of the Paris Agreement, that promotes development[Country A] to strengthen its NDC implementation in sectors covered by its NDC, as well as and transfer of advanced technologies and innovation and provides access to financial
promoting [Country A]'s achievement of [net-zero emissions by [2050]] [as communicated in resources that support Thailand’s achievement of NDC and LT-LEDS (Thailand’s 2nd Updated
its long-term low greeenhouse gas development strategies] [which is consistent with the NDC). Thailand’s LTLEDS provides Thailand’s long-term mitigation actions and pathway
temperature goal of the Paris Agreement to hold the increase in the global average towards Carbon Neutrality in 2050 and Net Zero GHG Emission in 2065, contributing to thetemperature to well below 2℃ above pre-industrial levels and to pursue efforts to limit the achievement of the long-term temperature goals of the Paris Agreement. The CCMGM
further sets a requirement for the project eligible for authorization to be a project thattemperature increase to 1.5℃ above pre-industrial levels.]
supports mitigation in order to achieve the goals of NDC and Thailand's LT-LEDS.

27

Discussion session

Discussion
Guiding questions• What types of tools could be further developed to close the capacity gaps
in implementing Article 6?
• What tools have your organizations/countries developed/are developing?
How may they be utilized and how may countries in need of support
access them?
• How should partner countries and organizations collaborate under the
Article 6 Implementation Partnership to promote development of common
tools that can benefit various cooperations and support programs?

29

Thank you for your attention

Any questions
Contact: a6_partnership@iges.or.jp
Website: https://a6partnership.org