On November 11, 2024, one of the first substantive outcomes of
the 29th Session of the UN Conference of the Parties to the UN
Framework Convention on Climate Change (COP29) was approved. The
President of COP19 introduced a draft decision of the Conference of
the Parties Serving as the Meeting of the Parties to the Paris
Agreement (CMA) Bodies. The decision took note of the Article 6.4
Supervisory Body’s adoption of two standards (one on
“methodologies” and one on “removals”), while
also reiterating the authority of the Supervisory Body to prepare
the rules for the implementation of Article 6.4.
Article 6.4 of the Paris Agreement aims to replace the Clean
Development Mechanism (CDM) of the Kyoto Protocol, and to establish
a global carbon credit market to promote the reduction of
greenhouse gas (GHG) emissions. The standards prepared by the
Supervisory Body establish criteria for the implementation of this
global market, and aim for a uniform approach for two elements of
the mechanism: (i) the development and evaluation of the
methodologies applicable to Article 6.4; and (ii) the requirements
for activities involving GHG removals under the Article 6.4
mechanism. These standards will assist project developers in
creating and submitting their methodologies, and allow projects to
be registered under the Article 6.4 mechanism.
The decision allows the Supervisory Body to review and amend
such standards, once ratified by the CMA, ensuring the ability to
quickly adjust the Article 6.4 mechanism when necessary. The
guidelines set out in the Standards are not yet finalized and may
be amended, based on contributions from the signatory countries of
the Paris Agreement and revisions by the Supervisory Body.
The standard on Methodologies states that methodologies must be
“real, transparent, conservative, [and] credible.” In
addition, the methodologies must encourage ambition over time, be
aligned with countries’ NDCs, and impose standard baselines. It
is also concerned with demonstrating additionality, leakage,
non-permanence and reversals. In regard to GHG removals, the
document establishes the core tenets, in addition to requirements
for registration under the Article 6.4 mechanism, including
monitoring, reporting, accounting for removal, addressing
reversals, avoiding leakage, and respect for human rights and those
of indigenous peoples.
The decision of the CMA is a forward step in the implementation
of the Article 6.4 mechanism, but does not yet conclude the
structure of Article 6.4, nor does it finalize the regulations
necessary for the international carbon-credit market.
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