Article 6 of the Paris Agreement

Overview

Article 6 of the Paris Agreement establishes the framework for international cooperation on climate action through market and non-market mechanisms. Adopted in 2015 and operationalized through detailed rules finalized at COP26 (Glasgow, 2021), Article 6 creates pathways for countries to work together in implementing their Nationally Determined Contributions (NDCs) while maintaining environmental integrity and avoiding double counting.

The article consists of three distinct but complementary mechanisms:

Article 6.2: Cooperative approaches for bilateral/multilateral transfer of mitigation outcomes
Article 6.4: A centralized UN-supervised crediting mechanism
Article 6.8: Framework for non-market approaches

These mechanisms represent the evolution of international carbon markets from the Kyoto Protocol era, incorporating lessons learned while establishing stronger governance, environmental integrity safeguards, and sustainable development benefits.

Article 6.2: Cooperative Approaches

Overview and Purpose

Article 6.2 establishes a decentralized framework enabling Parties to voluntarily transfer Internationally Transferred Mitigation Outcomes (ITMOs) to meet their NDCs. This mechanism allows countries to cooperate bilaterally or multilaterally while maintaining strict accounting to prevent double counting.

Key Features:

Voluntary participation by both transferring and acquiring Parties
Flexible design allowing various types of cooperation agreements
Mandatory corresponding adjustments to national inventories
Built-in transparency and reporting requirements

Internationally Transferred Mitigation Outcomes (ITMOs)

Definition: ITMOs are quantified greenhouse gas emission reductions or removals (measured in tCO₂e or other NDC-consistent metrics) that one Party transfers to another for use toward NDC achievement.

Requirements for NDC achievement.">ITMO Generation:

Must be real, verified, and additional
Derived from mitigation activities within the host Party's territory
Consistent with the host Party's NDC scope and timeframe
Subject to robust monitoring, reporting, and credit issuance.">verification (MRV)

NDC achievement.">ITMO Types:

Emission reductions from specific projects or programs
Sectoral or economy-wide emission reductions
Carbon removals from forests, soils, or technological solutions
Policy-based outcomes from regulatory or fiscal measures

Authorization Process

Bilateral/Multilateral Agreements: Parties negotiate cooperation agreements establishing:

Overall framework and objectives
Eligibility criteria for activities and entities
Quality requirements and safeguards
Benefit-sharing arrangements
Dispute resolution mechanisms

Authorization Statements: For specific activities, Parties issue detailed authorizations specifying:

Activity description and geographic scope
Crediting period and maximum NDC achievement.">ITMO volume
Methodology for quantification and monitoring
Sustainable development considerations
Corresponding adjustment procedures

Corresponding Adjustments

Purpose: Prevent double counting by ensuring emission reductions are counted toward only one Party's NDC.

Mechanism:

Host Party (Seller): Adds back transferred ITMOs to national inventory
Acquiring Party (Buyer): Subtracts acquired ITMOs from national inventory
Adjustments must occur no later than when ITMOs are used toward NDCs

Timing Requirements:

First transfer of ITMOs triggers corresponding adjustment obligations
COP29 (2024) clarified timing to prevent "zombie ITMOs" (authorized but never properly accounted)
Adjustments must be implemented through national registry systems

Infrastructure and Transparency

Centralized Accounting and Reporting Platform (CARP):

UNFCCC-operated platform for transparent tracking of Article 6.2 activities
Records authorizations, transfers, acquisitions, and uses of ITMOs
Enables public access to non-confidential information
Facilitates technical expert review of Party reports

International Registry:

Optional UNFCCC registry for Parties without national systems
Ensures interoperability between different registry platforms
Maintains serialized tracking of individual ITMOs
Links NDC achievement.">ITMO transfers to corresponding adjustment entries

Reporting Obligations:

Initial Report: Required upon first NDC achievement.">ITMO authorization
Annual Reports: Summary information on authorizations and transfers
Biennial Transparency Reports: Detailed information on cooperative approaches and corresponding adjustments

Current Implementation Status

International Cooperation:

Over 58 cooperation agreements signed as of 2025
Leading participating countries include Switzerland, Japan, Sweden, Thailand, Ghana, Rwanda
Agreements cover various sectors including renewable energy, forest conservation, and transportation

Operational Challenges:

Developing national registry capabilities
Building technical capacity for MRV and corresponding adjustments
Establishing domestic legal frameworks for NDC achievement.">ITMO authorization
Ensuring consistency between different cooperation agreements

Market Development:

First NDC achievement.">ITMO transactions completed in late 2023 (Switzerland-Thailand)
Growing interest from private sector entities
Potential integration with voluntary carbon markets through corresponding adjustments

Article 6.4: The Paris Agreement Crediting Mechanism

Overview and Governance

Article 6.4 establishes a centralized, UN-supervised crediting mechanism—the Paris Agreement Crediting Mechanism (PACM)—designed as the successor to the Kyoto Protocol's Clean Development Mechanism (CDM) with enhanced environmental integrity and sustainable development safeguards.

Supervisory Body (SBM):

12-member panel representing UN regional groups plus LDCs and SIDS
Responsible for methodology approval, activity registration, and credit issuance
Operates under authority of the Conference of the Parties serving as the Meeting of the Parties to the Paris Agreement (CMA)

Key Objectives:

Incentivize real, measurable, and long-term GHG emission reductions and removals
Support host Party achievement of NDCs
Contribute to overall mitigation in global emissions (OMGE)
Foster sustainable development in host countries

Activity Cycle and Credit Issuance

Registration Process:

Prior Consideration: Notification of intent to register within 180 days of activity start
Project Design Document (PDD): Comprehensive description including credit project. Baselines are critical for quantifying emission reductions and must be established using conservative, transparent methodologies.">baseline, credit project would not have occurred without the incentive provided by carbon finance. Projects must demonstrate that the activity faces genuine barriers (financial, technological, regulatory, or institutional) that carbon revenue helps overcome.">additionality, monitoring plan
Validation: Independent assessment by Designated Operational Entity (DOE)
Registration: SBM approval following validation and public consultation
Implementation: Activity operation according to approved design

credit issuance.">Verification and Issuance:

Monitoring: Data collection per approved monitoring plan
credit issuance.">Verification: Independent assessment of actual emission reductions by DOE
Issuance Request: Submission to SBM with credit issuance.">verification report
Credit Issuance: A6.4 Emission Reductions (A6.4ERs) issued to registry

Credit Types:

A6.4 Emission Reductions (A6.4ERs): Standard credits for emission reductions and removals
Mitigation Contribution Units (MCUs): Units cancelled to achieve OMGE

Share of Proceeds and Adaptation Finance

Adaptation Levy:

Minimum 5% of all issued A6.4ERs channeled to Adaptation Fund
Provides predictable finance for adaptation in developing countries
Levy applies automatically at issuance regardless of subsequent use

Overall Mitigation in Global Emissions (OMGE):

Minimum 2% of A6.4ERs cancelled to ensure net atmospheric benefit
Cancellation occurs through issuance of non-tradeable MCUs
Contributes to global emission reduction beyond Party NDCs

Administrative Costs:

Additional levies cover mechanism operational expenses
Fee structure designed to ensure self-financing while minimizing barriers

Sustainable Development Requirements

Sustainable Development Tool (SD Tool):

Mandatory assessment for all activities
Demonstrates positive contributions to host country SDGs
Validated independently before registration
Ongoing monitoring and reporting of SD impacts

Safeguarding Principles:

Environmental and social impact assessments
Free, prior, and informed consent (FPIC) for Indigenous Peoples
Gender equality and human rights protections
Stakeholder engagement throughout activity lifecycle

CDM Transition Provisions

Eligible Projects:

CDM projects registered on or after January 1, 2013
Must submit transition requests by end of 2025
Require host Party approval for transition
Subject to Article 6.4 rules including SD Tool requirements

Transition Benefits:

Streamlined registration process for eligible projects
Provisional use of existing CDM methodologies
No additional adaptation levy for legacy credits

Over 1,400 CDM projects have expressed transition interest, with several countries approving initial transitions by 2025.

Implementation Timeline

COP29 (2024) Achievements:

Finalized methodological standards enabling full operation
Adopted detailed guidance on removals and reversals
Established transition procedures for CDM projects
Agreed on mandatory safeguards under Article 6.4 to protect the environment and human rights, including requirements that projects cannot proceed without free, prior, and informed consent of Indigenous Peoples if those communities are affected

Expected Milestones:

2025: First methodology endorsements and registry launch
2025-2026: Initial A6.4ER issuances
2026-2027: Full operational capacity with multiple active methodologies

Article 6.8: Non-Market Approaches

Framework and Objectives

Article 6.8 establishes a work programme for non-market approaches (NMAs) that promote mitigation and adaptation ambition through cooperative activities that do not involve transfer of mitigation outcomes.

Core Principles:

Voluntary participation
Involvement of two or more Parties
Support for sustainable development and poverty eradication
Respect for human rights and gender equality
Contribution to Paris Agreement long-term temperature goal

Focus Areas:

Adaptation, resilience, and sustainability enhancement
Mitigation measures contributing to sustainable development
Development of clean energy sources
Finance, technology transfer, and capacity building

Governance Structure

Glasgow Committee on Non-market Approaches (GCNMA):

Established at COP26 under SBSTA oversight
Develops guidance and recommendations for NMA implementation
Organizes workshops and facilitates stakeholder engagement
Reports to CMA on work programme progress

Work Programme Phases:

Phase 1 (2023-2024): Framework development and platform establishment
Phase 2 (2025-2026): Full operationalization and activity scaling

UNFCCC Web-Based NMA Platform

Platform Functions:

Information Hub: Best practices, case studies, and guidance documents
Activity Listing: Voluntary registration of NMA initiatives by Focal Points
Matchmaking: Connecting Parties seeking and offering support
Monitoring: Tracking NMA implementation and outcomes

Access and Participation:

National Focal Points designated by Parties
Stakeholder participation in platform activities
Public access to non-confidential information
Integration with other UNFCCC processes

Types of Non-Market Approaches

Finance and Investment:

Blended finance mechanisms for climate projects
Green bonds and innovative financing instruments
Climate funds and facility development
South-South and triangular cooperation

Technology Transfer:

Technology development and deployment support
Intellectual property sharing arrangements
Research and development collaboration
Technical assistance and capacity building

Capacity Building:

Institutional strengthening programs
Training and education initiatives
Knowledge sharing and best practice exchange
Policy development support

Policy Coordination:

Regulatory harmonization initiatives
Standards development and alignment
Regional cooperation frameworks
Sectoral policy cooperation

Implementation Examples

REDD+ Readiness:

Forest monitoring system development
Institutional capacity building for REDD+ implementation
Safeguard system establishment
Stakeholder engagement processes

Renewable Energy Cooperation:

Technology transfer agreements
Joint research and development projects
Regional renewable energy initiatives
Grid interconnection projects

Adaptation Partnerships:

Climate resilience planning support
Early warning system development
Ecosystem-based adaptation initiatives
Climate information services

Integration with Market Mechanisms

Complementary Roles:

NMAs can prepare groundwork for subsequent market mechanism participation
Market mechanisms can generate finance for non-market activities
Combined approaches can enhance overall cooperation effectiveness

Examples of Integration:

Capacity building for Article 6.2 participation
Technology transfer supporting Article 6.4 methodology development
Readiness activities enabling market mechanism access

Implementation Challenges and Solutions

Technical Capacity Building

Registry Development:

National registry system establishment
Interoperability with international systems
Staff training and operational procedures
Legal framework development

MRV Capabilities:

Measurement and monitoring system development
credit issuance.">Verification body accreditation
Data management and reporting systems
Quality assurance and control procedures

Legal and Regulatory Frameworks

Domestic Implementation:

Authorization procedures for international cooperation
Benefit-sharing arrangements with project participants
Environmental and social safeguard requirements
Dispute resolution mechanisms

International Coordination:

Bilateral agreement negotiation and management
Registry interoperability standards
Corresponding adjustment procedures
Transparency and reporting harmonization

Market Development

Private Sector Engagement:

Clear rules for private entity participation
Investment incentive structures
Risk allocation and management
Market access facilitation

Quality Assurance:

Environmental integrity standards
credit project would not have occurred without the incentive provided by carbon finance. Projects must demonstrate that the activity faces genuine barriers (financial, technological, regulatory, or institutional) that carbon revenue helps overcome.">Additionality assessment procedures
reversal due to natural disturbances, human activities, or management changes.">Permanence and reversal risk management
Social and environmental safeguards

Future Outlook and Implications

Carbon Market Integration

Compliance Market Linkages:

Potential for Article 6 credits in national and subnational ETS
Enhanced environmental integrity requirements
Corresponding adjustment obligations for international use

Voluntary Market Evolution:

Growing demand for correspondingly adjusted credits
Quality differentiation based on Article 6 alignment
Standards harmonization with international rules

Global Climate Policy

NDC Enhancement:

Increased ambition through international cooperation
Cost-effective achievement of national targets
Technology transfer and sustainable development benefits

Long-term Strategy Integration:

Article 6 mechanisms supporting net-zero transitions
Carbon removal scaling through international cooperation
Hard-to-abate sector coverage through flexible mechanisms

Technological Innovation

Digital Infrastructure:

Automated monitoring and reporting systems
Blockchain-based registry platforms
AI-enhanced credit issuance.">verification procedures
Real-time transparency and tracking

Measurement Technologies:

Satellite-based monitoring systems
IoT sensor networks for automated data collection
Advanced modeling and credit issuance.">verification techniques
Enhanced uncertainty quantification

Conclusion

Article 6 of the Paris Agreement represents a fundamental evolution in international climate cooperation, providing frameworks for both market and non-market approaches while ensuring environmental integrity and sustainable development benefits. The three mechanisms work synergistically to enable cost-effective NDC implementation, technology transfer, and capacity building.

Key success factors for Article 6 implementation include:

Strong Governance: Robust oversight mechanisms ensuring environmental integrity while providing sufficient flexibility for diverse cooperation approaches.

Capacity Building: Technical assistance helping developing countries participate effectively in international cooperation while building domestic capabilities.

Market Integration: Seamless connection between Article 6 mechanisms and existing carbon markets while preventing fragmentation and ensuring quality.

Transparency: Comprehensive reporting and tracking systems enabling stakeholder confidence and preventing double counting.

Sustainable Development: Meaningful contribution to host country development priorities while delivering global emission reductions.

As implementation accelerates, Article 6 mechanisms are positioned to become central tools for achieving global climate goals while fostering international cooperation, technology transfer, and sustainable development. Their success will significantly influence the trajectory of global carbon markets and international climate policy for decades to come.

The operationalization of these mechanisms represents both an opportunity to scale climate finance and action globally, and a responsibility to ensure that international cooperation delivers real, additional, and permanent emission reductions that contribute meaningfully to limiting global temperature rise to 1.5°C above pre-industrial levels.

Sources: This content is based on official UNFCCC documents, COP decisions, Article 6 implementation guidance, and analysis from leading climate policy institutions and carbon market experts.