Article 6 of the Paris Agreement is one of the more complex and perhaps least understood of the global climate change negotiations.
The Article sets out how countries can pursue voluntary cooperation to reach their climate targets. It also enables international cooperation to tackle climate change and unlock financial support for developing countries.
This means that, under Article 6, countries are able to transfer carbon credits earned from the reduction of greenhouse gas emissions to help countries meet their climate targets.
At the ongoing COP29 in Baku Azerbaijan, the COP Presidency hailed critical early success last week on a consensus on standards for the creation of carbon credits under Article 6.4 of the Paris Agreement.
This will enable climate action by increasing demand for carbon credits and ensure that the international carbon market operates with integrity under the supervision of the United Nations.
What does this mean for Pacific countries? We sit down with Palau’s Climate Change negotiator, Mr Xavier Matsaturo, who has been leading the work on Article 6 for Pacific countries.
Question: When it comes to Article 6, why is this important for Pacific countries?
Answer: The key thing for the Pacific when it comes to Article 6 is the international registry because it enables participation. Without it, PSIDS countries would be unable to meet the requirements under Article 6. There are two functions of a registry. The first relates to pulling and viewing information about the credits and the second deals with the transaction of the credits. There is debate on whether we should have both for the international registry, as some countries only want pulling and viewing. Therefore, it is important for the outcome of this COP that allows for both functions so that Pacific countries can participate under the guidance of Article 6.
Question: How are the COP29 negotiations on Article 6 going?
Answer: There are countries that have their own registries, there are countries that have access to a registry system, so the idea of an international registry goes back to the COP in Glasgow, where we agreed to an international registry for countries that don’t have their own national registry so you can be able trade and be transparent about it.
The issue we see in our Pacific region is that if we only have the pulling and viewing function, this will limit our ability to meet the requirements of the Paris 6 Agreement, we wouldn’t have that tool to do the trading.
So that’s the big sticking point that will be elevated up to Ministers for a political discussion.
Question: What can we expect in the coming days? What’s your gut feeling?
Answer: Looking at the work now, I can say there is always some progress but not a lot. It looks like things are just going to be bumped up to another level. And we are going to have to buckle down, there is a lot of bracketed text, and we’re going to have to work really hard to get what we want.