Scaling Cooperation: Bilateral Agreements and Article 6.4 Mechanism
Bilateral Agreement Status
Bilateral agreements under Article 6 are increasing. To date, 99 bilateral arrangements have been formalized. These include 57 Memoranda of Understanding (MoU), 32 Bilateral Agreements (BA), and nine others, which include declarations of intents and other forms of bilateral agreement. The increase in the agreements highlights the momentum in international cooperation as Parties seek to operationalize Article 6 cooperative approaches.
Bilateral Cooperation between Parties
Indicating a growing interest among the host Parties to utilize Article 6 to achieve their climate goals, 61 Parties are currently engaging in bilateral cooperation, consisting of 51 host Parties and 10 acquiring Parties with some Parties being both buyer and seller countries, for instance Norway, Sweden, and the United Arab Emirates. Ghana is a frontrunner having successfully engaged with five acquiring Parties while Kenya, Senegal and Indonesia follow closely with each collaborating with four acquiring Parties.
Number of Projects Under the Bilateral Cooperation
According to publicly available information, there are currently 159 projects and activities being implemented under Article 6.2 of the Paris Agreement, all conducted through bilateral cooperation agreements between countries. These demonstrate how nations are beginning to operationalize international carbon markets. Japan accounts for 132 out of the 159 projects through the JCM. Switzerland has developed 21 projects, reflecting its active pursuit of high-integrity ITMOs to meet its domestic climate targets. Sweden has initiated three projects and the Republic of Korea has one project.
In addition to these registered pilots, there are about 133 JCM projects currently in the pre-registration stage. When combined with the total 132 JCM projects already registered, the total pipeline of JCM activities amounts to 265 projects adding up to 292 projects for all projects in the pipeline under the bilateral cooperation, showing the scale and momentum of bilateral cooperation under Article 6.2.
Figure below highlights the sectors countries are supporting through bilateral agreements under Article 6. JCM projects between Japan and partner countries cover various sectors, from energy and industry to forestry. Switzerland, on the other hand, focuses strongly on transportation and agriculture, making up the largest share in those areas. Early projects under the bilateral cooperation with Norway are focusing on energy generation, Singapore on agriculture, Sweden on transport, and the Republic of Korea on waste management.
Article 6.4 Designated National Authorities and Host Party Requirements
Countries are increasingly adopting the Article 6.4 mechanism by creating the systems required for cooperation. A total of 110 Parties have formally submitted information about their Designated National Authorities (DNAs). East and Southern and West and Central Africa have contributed 36 submissions, while Latin America and the Caribbean submitted 21 and Asia 19. However, only 23 host Party participation requirements have been communicated, showing a gap in readiness and need to empower DNAs to fully operationalize the Article 6.4 mechanism
Prior Consideration Notifications for an A6.4 Mechanism
A significant development under the Article 6.4 mechanism is the large number of prior consideration notifications, with a total of 1,041 submitted as of August 2025. These notifications serve as an early signal of interest from project developers indicating their intention to register activities under the mechanism. About 824 of the submissions relate to project activities (PA), while 217 are for programs of activities (PoA), demonstrating the growing interest in operationalization of the Article 6.4 mechanism and readiness of stakeholders to engage in carbon-market activities. The Article 6.4 mechanism is expected to play a central role in expanding carbon-market activity
Prior Consideration Notification Submissions by Region
An analysis of prior consideration notifications under the Article 6.4 mechanism shows regional differences. South Asia has the highest number with 684 submissions, while on the other hand the Pacific and East Asia record the lowest number of submissions. These variations may reflect differences in perceived mitigation potentials, the policy signals from governments, and the degree of reliance on international project-based approaches across regions.
Prior Consideration Notification by Sector
An analysis of sectors under prior consideration notifications shows a concentration in the energy[1]generation sector, with more than 50%, and the building and construction sector following with more than 20%. Within the energy-generation sector, the data reveals the dominance of renewable-energy technologies with solar power leading at 47% of submissions. Following solar, biomass energy accounts for 24% of submissions. In the building and construction sector, 100% of the submissions are focused on household energy efficiency activities.
Transition of the Clean Development Mechanism (CDM) Activities to Article 6.4 Mechanism (PACM)
The transition of Clean Development Mechanism (CDM) activities to the Article 6.4 mechanism under the Paris Agreement ensures a conversion to the new framework under the Paris Agreement and promotes early climate action. The Article 6.4 mechanism was established to promote transparency and cooperation for achieving NDCs. Activities registered under the CDM may transition to the Article 6.4 mechanism, provided they fulfill all necessary requirements. Conditions include an active crediting period as of 1 January 2021, compliance with the Rules, Modalities, and Procedures (RMPs) as outlined by the Supervisory Body, and adherence to any methodological requirements set forth by the host Parties. Project participants must have submitted the transition request to the secretariat by 31 December 2023, and host Party approval must be finalized by 31 December 2025.
CDM activities in transition and approved for transition
Approximately 1,500 CDM activities have requested transition to Article 6.4 mechanism, showing an interest from the project developers in maintaining their participation under PACM. East Asia has the highest number of activities requesting transition (545) with more than 96% of those coming from CDM activities in China, followed by South Asia (511) with more than 90% from India. As of September 2025, 92 activities have been approved by the host Party representing 6% of the total. Of the approved requests, South Asia leads, followed by East and Southern Africa. The low approval rate of CDM activities transitioning to the Article 6.4 mechanism reflects the diligent approach by host Parties, which must ensure that projects align with their updated NDCs and sustainable development priorities. It also reflects the more stringent standards of Article 6.4, which emphasize environmental integrity, sustainable development, and policy alignment.
CDM Activities in Transition by Sector
The CDM activities requesting transition to the Article 6.4 mechanism are largely concentrated in the energy generation sector. Within the energy-generation sector, the majority of transition requests are linked to renewable energy technologies, with wind-power projects making up 59% of the total and hydropower projects representing the second-largest share at 23%.
According to the rules adopted at COP26, the transition of CDM activities to the Article 6.4 mechanism requires approval by the CDM host Party by the end of December 2025. For host Parties that wish to provide approval, they must first fulfil the Article 6.4 participation requirements, including by submitting the host Party participation requirements form, posing challenges for some countries in meeting the stipulated deadline.
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.
Data Sources for Chapter 3
UNEP CCC Article 6 Pipeline
https://unepccc.org/article-6-pipeline/
GEC JCM Database
UNFCCC Article 6.4 DNAs
UNFCCC PCN
UNFCCC CDM Transition