Introduction

Introduction

The adoption of key Article 6 rules and guidance at COP26 in Glasgow marked a significant milestone for international carbon markets. After years of extensive negotiations, Parties agreed on a framework for "internationally transferred mitigation outcomes" (ITMOs) under Article 6.2 and the establishment of a new centralized crediting mechanism under Article 6.4, managed by the United Nations. These mechanisms build on the experience of the Kyoto Protocol, raising the bar for transparency and accountability in carbon markets. Article 6.2 allows mitigation outcomes from one Party to be transferred and applied toward the climate goals of another Party or other international mitigation purposes (OIMPs). Similarly, Article 6.4 creates a centralized framework and methodology for implementing mitigation activities, enabling host Parties to issue emission reductions that can be used under Article 6.2 or for domestic and other purposes.

​Despite this progress, many countries face significant challenges in implementing Article 6. Drawing on insights from surveys, consultations, desk research, and country factsheets, this report highlights that while 71 countries are working on authorization and tracking systems, only a few have operational frameworks in place. Many Parties struggle with unclear policy guidance, weak institutional coordination, and insufficient technical capacity to track and report emissions reductions. Although some countries have taken steps, such as forming bilateral agreements and establishing Designated National Authorities (DNAs) under Article 6.4, overall readiness remains limited. 

The A6ISR provides a snapshot of global progress in implementing Article 6 of the Paris Agreement, assessing the readiness of Parties to participate effectively in international carbon markets. Drawing on data from the Article 6 Implementation Partnership (A6IP) Center, through consultations, surveys, desk research, country partnerships, factsheets, and databases, the report delivers actionable insights for decision-makers. It evaluates the strategies, challenges, and capacity-building efforts necessary for effective engagement, emphasizing the importance of international cooperation and technical support to accelerate implementation. The report presents an overview of Article 6 readiness across 90 Parties, examining policy frameworks, institutional arrangements, and legal structures. It also provides a detailed analysis of voluntary carbon market activities, highlighting their role in supporting Article 6 implementation and guiding decision-makers on how to leverage these mechanisms to enhance national climate ambitions and deliver sustainable development benefits. Additionally, the report offers trend analysis to support researchers and stakeholders in identifying emerging challenges and opportunities while showcasing the collaborative efforts of the A6IP Center and its partners to provide capacity-building and technical support to participating Parties.

Findings from the Article 6 Implementation Status Report (A6ISR) emphasize the urgent need for clear policy frameworks and regulatory guidance to address these evolving requirements. Institutional challenges, including difficulties in coordinating across government agencies and engaging the private sector, further complicate the development of robust Article 6 frameworks. These gaps underline the importance of tailored capacity-building initiatives and technical assistance to help countries navigate the complexities of Article 6, enabling them to meet their climate commitments transparently, efficiently, and in compliance with international standards.