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Carbon Market Mechanisms Working Group

Background and Objective

In designing the new market mechanism set up under Article 6.4 of the Paris Agreement, Parties are required to take past experience into account and build on successful models. One approach developed under the CDM and which has proven especially valuable are the so-called Programmes of Activities (PoAs). These allow many smaller projects to be bundled into one larger programme. Because it significantly reduces the administrative burden for each individual activity, the approach is particularly suitable for use with very small-scale projects.

The programmatic approach was successful under the CDM and will also be of great relevance to voluntary cooperation under Article 6 in line with its objective to raise mitigation ambition. Against this backdrop, BMU supports the “Carbon Market Mechanisms Working Group“ (CMM-WG) launched in June 2019 at the Innovate4Climate in Singapore.
 

Implementation

The initiative’s focus, which originally was on improving CDM PoA rules, has been expanded to assess the relevance of programmatic and sectoral approaches for results-based climate finance and Article 6 crediting. The working group, which is coordinated and headed by Perspectives, aims to facilitate a continuous dialogue among key stakeholders with practical experience with up-scaled approaches. In this way, the working group contributes to the development of robust rules that ensure environmental integrity for scalable mitigation approaches.
 

Milestones and Outlook

The CMM-WG provides a platform for dialogue, thus enabling exchange of experience and coordination of measures to support the role of programmatic and up-scaled activities. Stakeholders are invited to exchange experiences, challenges and success stories of their activities in regular informal meetings. Background papers on key issues relevant for international market-based cooperation are developed and circulated to strengthen a common understanding of technical issues. In addition, Perspectives regularly holds consultations with relevant stakeholders on specific issues and reports to the CMM WG.

Through these activities, the working group aims to support the development of ambitious climate change mitigation measures and to help whole economic sectors move towards low-carbon and climate-resilient development.

Carbon Market Mechanisms Working Group (CMM-WG)

Role of BMU: BMU-financed

Lifecycle: since 2019

Implementation: Perspectives Climate Group

Contact: Stephan Hoch, hoch@perspectives.cc

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