A6IP at I4C :A6 is open for business

At the panel session on Article 6 for Business, held on 11 June 2025 during the I4C Conference, which explored how countries are operationalizing Article 6.2 through the development of bilateral agreements and examined the evolving role of Article 6.4 as the centralized crediting mechanism under the Paris Agreement, the Director of A6IP emphasized that while Article 6 is designed to foster international cooperation towards net-zero, its implementation remains inherently complex. He highlighted that Article 6 aims not only to mobilize government and private sector finance, technology, and capacity-building, but also to support enhanced ambition in mitigation and adaptation, promote sustainable development, and ensure environmental integrity.

Kazuhisa noted that a key challenge lies in how countries can internalize Article 6 within their national systems and align it with their NDCs. This process is shaped by diverse national circumstances, including domestic policy frameworks, carbon pricing instruments like emissions trading schemes and carbon taxes, and the design of domestic crediting schemes. At the same time, countries must also engage with international mechanisms—such as bilateral cooperation under Article 6.2, participation in the Article 6.4 mechanism, and interaction with independent standards—which will often need to coexist.

He further emphasized the need for greater harmonization of institutional arrangements and reporting frameworks to ensure the integrity and scalability of carbon markets. The Article 6.2 guidance already offers a structured foundation through tools such as the Initial Report outline, Annual Information submissions, Regular Information reporting, and the Centralized Accounting and Reporting Platform (CARP).

Transparency, he stressed, is critical to ensuring trust and functionality in Article 6 cooperation. This includes aligning authorization processes for cooperative approaches, ITMOs, and participating entities—supported by templates and clear legal and institutional arrangements. On tracking, he noted that national and international registry infrastructure will evolve over time, and that tracking arrangements must include unique identifiers, common nomenclature, and standardized ITMO metadata. These systems must ensure seamless flow of information to the AEF, Regular Information submissions, and CARP, while clearly identifying where corresponding adjustments are applied.