IETA regrets Article 6 failure, calls for end to “politicisation” of markets

DUBAI, 13 December – IETA expresses deep regret at the lack of consensus that has led Parties to fail to adopt texts relating to Article 6.2 and Article 6.4 of the Paris Agreement at COP28 in Dubai.

However, Article 6.2 can continue to be implemented without further guidance from the CMA. Market-based cooperative approaches would have benefitted from an Agreed Electronic Format for reporting and clearer rules on the authorisation of Internationally Transferred Mitigation Outcomes, but this is not essential.

“Countries can and should implement international carbon markets under Article 6.2. While the lack of consensus at COP28 is disappointing, we are excited by the numerous agreements signed and projects underway,” said Dirk Forrister, President and CEO at IETA.

Article 6.2 is a Party-driven process, and the necessary UNFCCC guidance for its operationalisation was agreed at COP26. The nature of Article 6.2 should not be an issue to be reopened. Instead, we believe environmental integrity can be delivered by setting up and training an expert review team within the UNFCCC and building capacity in host countries.

We are very concerned about the politicisation of the Article 6.4 mechanism and the delays in its operationalisation. The Article 6.4 Supervisory Body should not be micro-managed by SBSTA; this is not an effective way to build and operate a robust crediting mechanism that project developers and investors can rely on.

“We missed an opportunity to expedite the operationalisation of a crediting mechanism that would have set a high bar on environmental integrity, safeguards, and human rights. The delay of the Article 6.4 mechanism is not a victory for environmental integrity, it is a victory for the anti-market agenda,” said Andrea Bonzanni, International Policy Director at IETA.

Time is running out. We must deliver rapid cuts in emissions in this decade and kickstart the roll-out of carbon removals we need to achieve net zero. There cannot be net zero without international carbon market mechanisms.

The Global Stocktake refers to “the urgent need for accelerated implementation” of Article 6 in paragraph 31; we urge countries to step up their efforts to continue implementing these vital mechanisms.