January 2025 - Carbon markets are a major policy instrument in delivering and potentially enhancing national climate change mitigation targets under many Nationally Determined Contributions (NDCs). Collaboration through the market-based approaches of Article 6 – Article 6.2 and the Article 6.4 mechanism (or PACM, Paris Agreement Crediting Mechanism) – can mobilize resources, including from the private sector, lower costs, and enable countries and companies to realize their climate ambition and advance towards low- and no-emission development in places where it is needed the most.
COP29 in Baku effectively operationalized the PACM by completing its regulatory framework. 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 / programs and supporting the application of the new regulatory environment. The project focuses on, but is not limited to, the support of low-income countries in accessing the PACM. The project will do so by working with the key stakeholders in Article 6.4 implementation: project developers, host country designated national authorities (DNAs) and the governing body of the mechanism (the Supervisory Body of the Article 6.4 mechanism, SBM, assisted by the UNFCCC secretariat).
If you have any questions about the project or are interested in collaborating, please do not hesitate to contact its managing team:
Sandra Greiner (s.greiner@climatefocus.com), Anna Kovács (a.kovacs@climatefocus.com), Stephan Hoch (hoch@perspectives.cc), Juliana Kessler (kessler@perspectives.cc).