The Role of Independent Carbon Standards to Support Article 6 Implementation

Article 6 and Independent Carbon Standards

Independent carbon standards offer established systems for developing and tracking carbon projects for countries and the private sector, including providing ready-to-use methodologies and tools to monitor and track emission reductions. By aligning their systems with national Article 6 processes, independent standards could enable projects to shift from the voluntary space into the compliance market. This integration helps ensure that emission reductions are counted properly, avoids double counting, and ultimately supports countries in meeting their climate targets under the Paris Agreement.

Number of Projects under Independent Carbon Standards

An analysis of projects listed under various independent carbon standards shows that Verra VCS accounts for the largest share, representing 40% (4,662 projects). The second-largest standard is Gold Standard (GS), representing about 33% of projects (3,817) in total. The Climate Action Reserve (CAR) follows with 10% (1,131 projects), mainly serving North American markets, while the Global Carbon Council (GCC), which has recently gained traction and focusing on emerging economies represents 9% (1,061 projects). The American Carbon Registry (ACR), one of the older standards in the market, holds an 8% share with 909 projects. In contrast, ART Registry accounts for 0.2% (26 projects). It is important to note that this analysis does not cover all independent carbon standards currently in operation.

Number of Projects by Region under Independent Carbon Standards

Figure below shows how the projects are distributed across regions and the independent standards used. Western Europe, North America, and other states have the most projects. South Asia (2,617 projects) and East Asia (1,717 projects) also stand out. East Asia is dominated by the VCS, with 75% of projects in the region under the standard. Latin America and the Caribbean (1,428 projects) rely heavily on VCS as well, while East and Southern Africa (1,533 projects) mostly use the GS standard. Projects are concentrated in certain regions, and the choice of standard reflects both the scale of the projects and the development co-benefits that host countries and investors prioritize

Sector Types by Independent Carbon Standards

The analysis of sectors registered under independent carbon standards indicates that the energy-generation sector leads with 3,412 projects, primarily certified under the GS (43%) and GCC (29%). In the agricultural sector, most projects are certified by the VCS (70%). The building and construction sector follows with 2,657 projects, dominated by the ACR (81%), while the remaining share is under VCS (19%). For forestry and land use (2,218 projects), certification is more diversified, with ACR (14%), ART (29%), and GS (5%). The industrial processes sector (1,034 projects) is largely under ACR (49%) and GS (17%). Meanwhile, waste management (1,020 projects) is mainly divided between CAR (37%) and VCS (42%). Overall, VCS maintains a strong presence across most categories, particularly in agriculture, forestry and waste management, whereas ACR plays a dominant role in construction and industrial processes

Under the energy-generation sector , wind power is the leading technology, accounting for 38% of projects across major Voluntary Carbon Market (VCM) standards. Solar power follows at 31%, while other technologies such as hydro, biomass, and other technologies have smaller shares. The building and construction sector (Figure 20) is second after the energy-generation sector in which energy efficiency for households accounts for about 90% of all activities while energy-efficiency for services accounts for only 10%

Article 6 Authorized Activities under Independent Carbon Standards

The introduction of authorized activities under independent carbon standards marks an important shift in the global carbon market, linking VCMs with Article 6 of the Paris Agreement. Traditionally, independent carbon standards focused on certifying voluntary emission reductions, but with Article 6, they are now facilitating projects that can generate ITMOs authorized by host governments. This demonstrates the convergence of voluntary and compliance carbon markets, as an increasing number of countries are recognizing and using independent carbon standards as the underlying standards to generate ITMOs and include them in their eligibility frameworks. The process requires LoAs that ensure alignment with national accounting systems and avoid double counting, while distinguishing between credits used for voluntary corporate claims and those applied toward NDC targets.

To assess the current status of Article 6 authorization under independent carbon standards and to analyze the transparency of related information, credit issuance data was collected from each registry. Based on publicly available data, 42 activities under GS have issued credits authorized for Article 6, with nine of those included NDC use (“compliance”) while all covers “voluntary or other purposes” with none “authorized for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).” As for VCS, Article 6-authorized credits have been issued from 15 projects, 13 of which have been authorized for NDC use, international mitigation purposes (including CORSIA) and other purposes, and two that cover only international mitigation purposes and other purposes. As for ART, there are currently two registered projects, and one of them has issued credits authorized for NDC, international mitigation purposes, and other purposes.

Initial Reports Submitted under Independent Carbon Standards

The table illustrates the growing momentum among countries in submitting their Initial Reports under independent carbon standards, marking an important step in operationalizing Article 6 mechanisms beyond bilateral arrangements. Notably, Guyana, Rwanda, Zimbabwe, and Malawi have already submitted their Initial Reports for projects under independent carbon standards, signaling institutional readiness and progress in reporting.

The submissions reflect not only the strengthening of national reporting frameworks but also an increasing capacity to align domestic carbon initiatives with internationally recognized standards. By participating in the process, these countries are showcasing commitment to credible emissions accounting and compliance with evolving global carbon governance requirements. This trend also signals a growing role of independent carbon standards as pathways for supporting the broader implementation of cooperative approaches under Article 6 of the Paris Agreement.

The data presented in these chapter 3 and 4 follow sectoral classifications derived from the Article 6 common nomenclature established by the UNFCCC. Regional designations are based upon A6IP regional categories. Please note that the data used in Chapter 4 has been harmonized into an A6IP Internal Database incorporating information from multiple data sources listed in the table below.

A6IP Internal Database Sources for Chapter 4

ART TREES

https://art.apx.com/myModule/rpt/myrpt.asp?r=111

ACR

https://acr2.apx.com/myModule/rpt/myrpt.asp?r=111

CAR

https://thereserve2.apx.com/myModule/rpt/myrpt.asp?r=111

GCC

https://projects.globalcarboncouncil.com/pages/submitted_projects

https://registry.goldstandard.org/projects?q=&page=1

VCS

https://registry.verra.org/app/search/VCS/All%20Projects