Paris Agreement 6 Implementation
Partnership Center
2nd Authorization WG Meeting (Sep 26, 2023)

Article 6 Authorization
Capacity Building Material
Abdessalem RABHI

Programme Manager, IGES
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Overall Outlines
Material type: Deepen understanding and step-by-step guidance
Focus: Authorization related aspects in Art. 6 rules; Art. 6.2 Guidance;
and Art. 6.4 Rules, Modalities, and Procedures (RMP).

Targets: Primarily, Government officials involved in the authorization process.
i) Understanding the relevance and practicality of Article 6;
Objectives: ii) Understanding the authorization related aspects;iii) Step-by-step guidance on addressing those aspects.
2Examples of Fundamental Questions
1.

Whether to be a Party of the Paris Agreement?

2.

Whether to participate in a voluntary Cooperative
Approach as per Art.6 of the PA?
-What are the costs, opportunities, risks?

3.

Whether to participate as per Art.6.2 Guidance?
-Is there an institutional arrangement?
-Is there an implementation process framework?
-Is there a regulatory framework?

4. What to Authorize?
-Only core elements (CA, ITMO, and Entities)?
5. When to authorize?
-Before or after generation of Mitigation Outcomes?
6. For what purpose to use authorized ITMO?
-NDCs, and/or OIMP and/or Others?
7. How to report on authorizations?
-Single document or one for each authorization?

Paris Agreement (PA)
NDC
Party

Implementation
Process (Generic)Eligible mitigation
activities, etc.
PDD

Activity
Registration
Validation
Approval/Preauthorization
Monitoring &Verification

Transferring
Country

Voluntary Cooperative Approach as per Article 6 ofthe PA

Guidance

ITMO

Rules, Modalities & Procedures (RMP)

ITMO
Authorization

ITMO / ER

ITMO UseTrackingCorresponding
Adjustment

Article 6.4

Article 6.2

ITMOAuthorization

ReportingAcquiringCountryNDC

OIMP

Others3I. General Introduction

Content

1. The Paris Agreement on Climate Change.
2. The Carbon Markets: Key means to achieve the Paris Agreement.

II. Article 6: Authorization Aspects

1. Why to participate in a Cooperative Approach as per Art. 6 of the PA?
2. Approaches (Art. 6.2 Guidance, Art.6.4 RMP).
3. Authorization aspects (Art. 6.2 Guidance, Art.6.4 RMP).
-Core elements: Cooperative Approach (CA), Internationally Transferred Mitigation
Outcomes (ITMO), Participation (Entities).
-Reporting (Initial report, Annual information, Regular information)-Review-Tracking (Registry(ies), A6 database, centralized accounting and reporting platform)

III. Authorization: key elements
1. Institutional arrangement process.
2. Implementation process.
3. Regulatory framework.

4ContentIV. Authorization Aspects: Step-by-step guidance

1. How to establish a regulatory framework?
2. How to establish an institutional arrangement framework?
3. How to process an authorization?
3.1 Timing of authorization (before/after generation of mitigation outcome, etc.)
3.2 Format/contents of authorization
4. How to report on authorization (instrument, element, frequency)?
5. How to address changes to authorization?
5.1 Scope of changes
5.2 Timing of changes
5.3 Limits and implication of changes

Notes: Case studies will be provided from transferring and acquiring countries)

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Content

V. A6 Related capacity-building opportunities

1. Directory to A6 related capacity-building opportunities
1.1 Global level / Regional level / National level
1.2 By Country / by supporting agencies
2. A6IP and A6IP Center Supports
2.1 Capacity-building tools (Authorization, reporting, and tracking)
2.2 Tailored support packages responding to country needs
2.3 Collection and dissemination of information on capacity-building support

6Elaboration

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•

III.

Authorization: Key elements

Article 6.2 Guidance: Authorization is necessary for use of ITMOs toward NDC
achievement or for OIMPs (decision 2/CMA.3 Annex).

Source: UNDP, https://www.learningfornature.org/en/courses/operationalizing-article-6-2-of-theparis-agreement-achieving-ambitious-climate-action-through-cooperative-approaches/

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III.

Authorization: Key elements• Article 6.2 Guidance: Participation elements
 Institutional arrangement for operationalization
 Implementation processes, including:-Infrastructure for registration;-ITMO tracking toward NDC achievement;-Reporting obligations.
 Regulatory framework

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III.

Authorization: Key elements

1. Regulatory framework for authorization

Depending on the local circumstances and starting conditions, countries may decide to: Establish a new legal framework for Article 6 authorization;
 Incorporate the authorization process within a general Article 6 framework or Amend any existing laws to incorporate processes related to authorization underArticle 6 (for those with laws on the international transfer of emission reductions).

The legal framework on authorization could cover: Eligibility criteria of mitigation activities generating MOs that could be authorized;
 The authorizing entities (governmental agencies or (multi-)ministerial institutions; The format and content of authorization letter; The timing authorization process, including the documentation to be submitted byapplicants at the different stages of the authorization process;10III. Authorization: Key elements
2. Institutional frameworko Article 6 institutional arrangement-Comprised of representatives from more than one ministry
and/or other stakeholders.
 Advise on Article 6 participation strategy
 Monitor the implementation of the Article 6framework.
 Ensure coordination/harmonization with othernational initiatives.
 Ensure sustainability of Article 6 institutionalarrangements.

Schematic diagram of Article 6
institutional frameworko Article 6 Unit

-Could be part of a ministry, responsible for:
 Day-to-day operation of Article 6 related issues
 Definition and implementation of the Art.6framework
 Managing bilateral agreements
Source: UNDP, https://www.learningfornature.org/en/courses/operationalizing-article-6-2-of-theparis-agreement-achieving-ambitious-climate-action-through-cooperative-approaches/

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III.

Authorization: Key elements

3. Authorization processes: General flow
Tracking ofauthorized ITMOs

Authorizationof Cooperative
Approach

Authorization of
ITMOs for use
towards NDC
and/or OIMP

Application ofcorresponding
adjustments

Reportingauthorized
ITMO

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III.

Authorization: Key elements

3. Authorization process: When to authorize?

Timing of authorization (before/after generation of mitigation outcome, etc.)

Source: Luca Lo Re, Jane Ellis, and Sandra Greiner (https://www.oecd.org/publications/the-birth-of-an-itmo-authorisationunder-article-6-of-the-paris-agreement-3d175652-en.htm)

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III.

Authorization: Key elements

3. Authorization process: When to authorize?
Sweden as an Acquiring Country

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III.

Authorization: Key elements

3. Authorization process: When to authorize?
Ghana as transferring Country

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III.

Authorization: Key elements

3. Authorization process: What to authorize, what and where to report?
Reported inAuthorisationCore elements

InitialReport (Para 18 (g) 2/CMA.3)

Cooperativeapproach•

ITMOs for use(NDC and/orOIMP)•Entities toparticipate in acooperativeapproach•••A copy of theauthorization
A description of theapproach.
The duration of theapproach.
The expected
mitigation outcome
for each year.
The participating
Parties involved
and authorized
entities

AnnualInformation (Para 20(a), (b) 2/CMA.3)••

Regularinfo. (Para 21 (c)2/CMA.3)•
Annual information on authorization of ITMOs for use
towards achievement of NDCs and/or OIMPFirst transfer, transfer, acquisition, holdings,
cancellation, voluntary cancellation, voluntarycancellation of mitigation outcomes or ITMOs towards
overall mitigation in global emissions, and use towards
NDCs;

In respect of the above,• The cooperative approach• The OIMP authorized by the Party• The first transferring participating Party• The using participating Party or authorized entity(ies)• The year in which the mitigation occurred• The sector(s) and activity type(s), and the unique
identifiers.

•Authorizations
and information
on itsauthorization(s)of use of ITMOs
towards
achievement of
NDCs and/orOIMPAny changes toearlier
authorizations,pursuant toArticle 6,paragraph 3;

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IV. Authorization Aspects: Step-by-step guidance
1. How to establish a regulatory framework?
2. How to establish an institutional arrangement framework?
3. How to process an authorization?
3.1 Timing of authorization (before/after generation of mitigation outcome, etc.)
3.2 Format/contents of authorization
4. How to report on authorization (instrument, element, frequency)?
5. How to address changes to authorization?
5.1 Scope of changes
5.2 Timing of changes
5.3 Limits and implication of changes

Notes: Case studies will be provided from transferring and acquiring countries)
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V. A6 Related Capacity-building Opportunities•

Directory:Global Support••

Capacity Building Work Programme on Art.6.2 and Art. 6.4/ UNFCCC
Hands-on trainings at Regional Climate Weeks/ UNFCCCArticle 6 Action Hub/ Market Place/ UNFCCC•Regional Capacity Building Virtual Workshops on Article 6/ UNFCCC•

Partnership for Market Implementation Facility (PMIF)/ World Bank•

Partnership for Market Implementation (PMI)/ World Bank•Transformative Carbon Asset Facility (TCAF)/ World Bank•

Digital for Climate (D4C)/ UNFCCC, EBRD, UNDP and WB•Art. 6.2 Transfer Readiness Assistance (TRA)/ UNDP•

Asian Development Bank’s Art. 6 Support Facility (A6SF)/ ADB•

Initiative or Climate Action Transparency (ICAT)/ UNOPS•CDM, Article 6 and VCM Pipeline Analysis and Database/ UNEP-CCC•

Sustainable Development Initiative for Art. 6/ UNEP-CCC & Gold Standard•

The Capacity-building Initiative for Transparency – Global Support Programme (CBIT-GSP)/
UNEP-CCC•

Integrated Assessment for Article Six (IAA6) Project/ UNEP-CCC•Expert Group Meeting (EGM) Examining the role of carbon markets to enhance investment incarbon removal in developing and emerging markets/ UNIDO•International Initiative for Development of Art. 6 Methodology Tools/ Perspective ClimateGmbH•Article 6 Early Movers Programme/ Gold Standardyu

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V. A6 Related Capacity-building Opportunities
Directory:
Regional Support
Support in Asia-Pacific

ADB Knowledge Products related to Article 6/ ADB
ADB Workshop on Carbon Pricing for V20 Countries* in AP/ ADB
Mobilising Article 6 Trading Structures (MATS)/ GGGI Cambodia, Nepal• Designing Article 6 Policy Approaches (DAPA)/ GGGI Indonesia, Vietnam• Supporting Preparedness for Article 6 Cooperation (SPARC)/ GGGI Thailand, Pakistan• Global Carbon Market/ GIZ
 India• Support JCM Partner Countries for expanding 3rd Party Entity/ OECC Cambodia, Indonesia, Maldies, Mongolia, Myanmar,Philippines, Thailand, Vietnam• Mutual Learning Program for Enhanced Transparency (MLP)/ IGES
 Indonesia, Mongolia, Thailand• Carbon Market & Art. 6 Scoping Study/ EBRD
 Uzbekistan, Georgia• Supporting Development of Kazakhstan ETS Kazakhstan•••

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V. A6 Related Capacity-building Opportunities
Directory:Regional Support Middle
East and North Africa• Designing Article 6 Policy Approaches (DAPA)/ GGGI Morocco• Support JCM Partner Countries for expanding 3rd Party Entity/OECC Saudi Arabia, Tunisia• Global Carbon Market/ GIZ
 Tunisia• Supporting Turkey to Scale Up Domestic Carbon Market/ EBRD
 Turkey

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V. A6 Related Capacity-building Opportunities
Directory:
Regional SupportAfrica Sub Sahara

Eastern African Alliance on Carbon Markets/
 Ethiopia, Kenya, Rwanda, Uganda• West African Alliance on Carbon Markets
 Burkina Faso, Cabo Verde, Ghana, Guinea, Guinea Bissau, Liberia,Mauritania• Pilot Market-based Approaches in Africa (Art. 6.2 & Art. 6.4)/ AfDB Côte d'Ivoire, Ghana, Nigeria• Pilot Phase of the Adaptation Benefit Mechanism (Art. 6.8)/ AfDB Nigeria• Art. 6.2 Transfer Readiness Assistance (TRA)/ UNDP Ghana, Senegal• Designing Article 6 Policy Approaches (DAPA)/ GGGI Senegal• Supporting Preparedness for Article 6 Cooperation (SPARC)/ GGGI Zambia• NDC Assist II Article 6 Capacity Building Component/ GIZ
 South Africa, Rwanda• Support JCM Partner Countries for expanding 3rd Party Entity/ OECC
 Ethiopia, Kenya, Senegal• Climate Finance Innovators/ Perspectives
 Ethiopia, Senegal, Uganda•

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V. A6 Related Capacity-building Opportunities
Directory:Regional SupportLatin America•

Technical Subgroup on MRV and Climate Change (SGT-MRV)/ PacificAlliance•

Supporting Preparedness for Article 6 Cooperation (SPARC)/ GGGI Colombia•

NDC Assist II Article 6 Capacity Building Component/ GIZ
 Peru•Support JCM Partner Countries for expanding 3rd Party Entity/ OECC
 Chile, Costa Rica, Mexico•

Mutual Learning Program for Enhanced Transparency (MLP)/ IGES Chile22

V. A6 Related Capacity-building Opportunities
A6IP and A6IP Center Supports

Capacity Building Tools: Authorization, Reporting, Tracking
Dissemination: Webinar on private sector participation in Article 6

Support Package: Tailored support packages responding to country needs

Outreach:i) A6 CB Databaseii) A6 IP Websiteiii) Newsletter23

Process/Schedule to develop the 1st version of the training materials

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