Background and objective
COP29 in Baku effectively operationalized the Paris Agreement Crediting Mechanism (PACM). In 2025, the PACM is expected to become fully operational with progress on developing new methodologies, revising existing CDM methodologies, the implementation of the full mechanism registry, the development of additional standards and guidelines that elaborate the existing regulatory structure, and the expected first issuance of Article 6.4 emission reduction units (A6.4ERs).
Against this background, the Federal Ministry for Economic Affairs and Climate Action (BMWK) supports a new activity, conducted by Climate Focus and Perspectives Climate Research, on mobilizing the Article 6.4 project pipeline. This project seeks to support the Article 6.4 mechanism by mobilizing high-quality projects and programs, and by supporting the application of the new regulatory environment.
Implementation
This 20-month project (August 2024 – March 2026) includes the following key activities:
- Supporting project developers: The project provides direct technical assistance to selected project developers, helping them navigate new rules, methodologies, and host country approval processes. This includes, for example, regulatory guidance, application of assessment tools, and facilitation of host country interactions.
- Supporting host countries: The project assists selected host countries in preparing for Article 6.4 participation. Key areas of support include, for example, approval and authorization processes, engagement with the mechanism registry, and topical analysis for Designated National Authorities.
- Enabling the Article 6.4 project pipeline: The project broadens awareness of regulatory processes by translating negotiation updates into actionable insights. It disseminates information through briefings, stakeholder dialogues, and cross-cutting meetings, ensuring policymakers, project developers, and investors stay informed about Article 6.4 opportunities.
Results and Outlook
The project will enhance project developers’ capacity to navigate Article 6.4 requirements, support host countries in establishing necessary processes to participate in and benefit from the PACM, and facilitate knowledge-sharing on regulatory developments. By providing hands-on assistance and disseminating key insights, the project aims to contribute to mobilising high-quality projects for the PACM.