Background of the Private Sector WG andExpectations for the WG

Paris Agreement Article 6Implementation Partnership CenterRecalling the Principles of High Integrity Carbon Markets- 2023

The A6IP Center was formally established by G7 Ministers on Apr 2023 at the G7 Climate andEnergy Ministers’ Meeting, together with the declaration of the G7 Principles of High Integrity Carbon
Markets.

High Integrity Carbon Markets
High-integrity carbon markets must be consistent with ambitious, science-aligned emissions pathways,
to achieve net-zero emissions by 2050.

✓ Supply-Side Integrity: MRV + high environmental integrity✓ Demand-Side Integrity: The use and disclosure of credits must align with net-zero emissions by 2050
✓ Market Integrity: Transparent information and public tracking for carbon credits

The Components of the G7 Principles of High-Integrity Carbon Markets
Supply-side Integrity• Emission reductions/removals align with the 1.5 degree goal and achievement of net-zero emissions
by 2050.
• Alignment with Article 6 rules and the CORSIA emissions units criteria and guidelines• Appropriate measures are in place to address environmental and social impacts (including respectfor human rights, gender equality, and the rights of Indigenous Peoples) .
Demand-side Integrity• Unavoidable emissions should be eligible for use of credits and contributing to the 1.5 degree goalof the Paris Agreement and achievement of net-zero emissions by 2050.
• Use the authorized credits in accordance with Article 6 rule to achieve NDCs and other international
mitigation purposes.
• Use of credits should be widely disclosed to encourage investment in new emission reductions otherthan their own emissions.
Market Integrity• Markets should be transparent, with information on credits used for the voluntary market as well as
the achievement of NDC recorded through a registry.
• Markets should be publicly disclosed in relation to their own emissions and strategies for achieving
their goals.

G7 Ministers' Meeting on Climate, Energy and Environment in Turin- Italy April 2024

The latest G7 Communique reaffirms theimportance of implementation of the Principles

G7 commits to…
•Work with the OECD under the Carbon Market Platform to share our experiences with promoting theimplementation of the “Principles of High Integrity Carbon Markets” and actions taken to promote
the development of carbon markets while ensuring their environmental integrity•

Enhance the provision of capacity building and technical assistance to countries wanting to
implement carbon market by […] encouraging international coordination among the various initiatives
related to capacity building, such as the “Paris Agreement Article 6 Implementation Partnership”[…]

Towards the Implementation of the Principles
Supply Integrity

Demand Integrity

Market Integrity

Alignment with Article 6 (useof the VCM for NDC/ CORSIA
purpose), linking with theinitial report

Encourage stakeholders toapply the appropriate codes tomake sure that the credit isused towards netzero

Registry/ Rating with clear
standards/ Reports may
enhance transparency ofmarket

Working with IC-VCM andindependent standards such as GoldStandards, VERRA and others
together with host country’s support
package for the implementation of theArticle 6.

Implementation of various initiatives
by companies and governments, suchas VCMI (Voluntary Carbon MarketInitiative)

The transparent and credible data set
enables stakeholders to see what’s
happening in international carbon
market and domestically in their own
context.

Expectations for the A6IP Private Sector
Working Group
Objectives:• Sharing the good practices ofthe high integrity carbon
markets• Identify technical issues anddiscuss solutions for its
implementation among key
stakeholders[Arrangement]• Co-chaired by IETA and A6IPCenter• Inviting all partners (not only
Private Sector Partners but
also Government/ Institutions)• Discussion will be recorded
and disclosed

Thank you!

https://a6partnership.org/
Contact:
A6_partnership@iges.or.jp