ARTICLE 6 ADOPTION AT COP29

TAG: GS-3: ECOLOGY AND ENVIRONMENT

CONTEXT: The COP29 of UNFCCC held in Baku recently marked the adoption of Article 6 of the Paris Agreement after nine years of negotiations.

EXPLANATION:

Article 6 enables countries to cooperate in implementing their Nationally Determined Contributions (NDCs) through carbon markets and mitigation measures.

• • Key Provisions:
    • Article 6.2: A decentralized system for bilateral carbon credit trading.
    • Article 6.4: Establishes a global carbon market overseen by a Supervisory Body.

Key Features of Article 6

Article 6.2:

• • • Framework: Decentralized system involving bilateral agreements.
    • Purpose: Trade carbon credits from emissions reduction (e.g., clean cookstoves) or removals (e.g., afforestation).
    • Challenges:
      • No mandatory measures to avoid double counting of mitigation outcomes.
      • Weak accountability for inconsistencies flagged during expert reviews.
      • Absence of robust guidelines to monitor or quantify reversals (e.g., captured CO₂ re-released due to forest fires).

Article 6.4:

• • • Framework: Global carbon market with SB as the regulatory authority.
    • Standards: Transitioning afforestation/reforestation projects from Kyoto Protocol’s Clean Development Mechanism (CDM) to Article 6.4 without stringent additionality tests.
    • Key Concerns:
      • Lack of robust mechanisms to ensure regulatory stability while allowing science-based improvements.
      • Delay in operational readiness (expected post-2026).

Concerns Raised by Experts:

• • Weak Governance: Lack of strong measures for transparency and accountability in carbon credit trade. Risk of low-quality credits undermining environmental integrity.
  • Additionality Gaps: Projects under CDM transition to Article 6.4 without proving that mitigation would not occur without credit incentives.
  • Reversal Risk: Lack of mechanisms to address carbon reversals, such as re-released CO₂ from afforestation projects.
  • Environmental Integrity Risks: Potential misuse due to weak monitoring, reporting, and verification protocols in Article 6.2.

Positive Developments

Transparency: Countries must publish information on formally approved mitigation outcomes for private actors.

• • • Identified inconsistencies in cooperative approaches are to be made public.

Standards Development: Supervisory Body tasked with creating additional tools like the reversal risk tool to ensure better compliance.

Scientific Guidance: SB instructed to seek the best available scientific expertise to develop standards.

Alignment with NCQG: Article 6 could contribute to additional financing for the New Collective Quantified Goal for Climate Finance (NCQG).

Way Forward:

• • Strengthening Governance: Mandate avoidance of double counting and ensure transparency in trading mechanisms.
  • Ensuring Additionality: Subject all projects under Article 6.4 to stringent additionality tests.
  • Robust Monitoring: Develop frameworks to address reversal risks and enforce accountability for non-compliance.
  • Capacity Building: Assist developing countries in implementing carbon markets with integrity.
  • Timeline Adherence: Expedite operational readiness of Article 6.4 to achieve global climate targets effectively.

Conclusion:

• • The adoption of Article 6 marks a significant step in global carbon markets but raises concerns over its potential to undermine environmental integrity. Ensuring stringent guidelines, robust monitoring, and global cooperation will be critical to harnessing carbon markets’ potential for effective climate action.

Source:

https://www.downtoearth.org.in/climate-change/countries-adopt-article-6-at-cop29-after-close-to-a-decade-of-negotiations