Article 6 Observatory | Transparency & Accountability in Carbon Markets

Focus Areas

We curate, spotlight, and organise existing research, documents, and data relevant to Article 6 from official and independent sources as well as conduct original analysis, commentary and reviews that offer insight into Article 6 developments.

Article 6.2

Bilateral Tracking

Monitoring the emergence of decentralized "cooperative approaches" and the associated international transfer of mitigation outcomes to ensure transparency in country-to-country deals.

Article 6.4

Centralized Oversight

Analyzing the UN's Paris Agreement Crediting Mechanism, from its evolving regulatory rulebook to the procedures and analysis of forthcoming project pipeline.

Resource Hub

Independent Research

Curation of independent, peer-reviewed research and evidence-based data to provide insight into Article 6 developments.

Independence

Operating free from commercial interests and political influence to provide unbiased analysis.

Transparency

Demanding public access to data on authorizations, transfers, and corresponding adjustments.

Environmental Integrity

Ensuring carbon traded equals genuine emission reductions with no double counting.

Human Rights

Safeguarding local communities against land grabbing and displacement.

Accessibility

Making complex policy information understandable for diverse stakeholders.

Rigorous Science

Grounding all analysis in peer-reviewed research and validated methodologies.

Article 6.2 of the Paris Agreement introduces the framework for cooperative approaches enabling actors, primarily countries, to generate and trade in internationally transferred mitigation outcomes (ITMOs). As there is no definition of what a cooperative approach consists of, there is significant latitude concerning what could generate an ITMO.

Key Developments to Date

2015 Dec

Foundation

Paris Agreement Adopted

Framework Article 6 provisions agreed including for cooperative approaches (Article 6.2), a crediting mechanism (Article 6.4) and non-market approaches (Article 6.8)

2020 Oct

First Agreement

Switzerland-Peru Bilateral

First Article 6.2 bilateral agreement signed under the Paris framework.

2021 Nov

Rulebook Adoption

COP26 Decision 2/CMA.3

Framework decision adopted establishing a framework for Internationally Traded Mitigation Outcomes (ITMOs), authorization requirements, reporting obligations, and mandates for CARP and international registry. Completed Paris Agreement rulebook after six years of negotiations.

2022 Nov

Operationalization

COP27 Decision 6/CMA.4

Tracking guidance for ITMOs adopted, technical expert review procedures established, and CARP functionalities elaborated.

2023 May

Reporting Begins

First Initial Reports Submitted

Switzerland submits first initial report to CARP covering Ghana, Thailand, and Vanuatu cooperative approaches. Ghana submits its initial report in September 2023.

2023 Dec

Setback

COP28 Fails to Adopt Decisions

Key disagreements on authorization processes, confidentiality, and Article 6.4 methodology eligibility results in no negotiation outcome on Article 6.2 at COP29.

2024 Jan

First Transfer

First ITMO Transfer Announced

Switzerland acquires 1,916 ITMOs from Thailand's Bangkok E-Bus Programme at approximately US$30/tonne. Credits counted toward Switzerland's NDC.

2024 Nov

Rulebook Finalized

COP29 Completes Rules

Authorization requirements clarified, mandatory Letter of Authorization elements specified, dual-layer international registry system adopted, and corresponding adjustment triggers established.

2025 Dec

Current Status

108 Bilateral Agreements

108 bilateral agreements between 64 countries recorded. 39 cooperative approaches formally registered with UNFCCC. Reporting and technical expert review cycle commenced.

The Article 6 Observatory is designed to track progress on Article 6.2: how countries are preparing, the rules and reporting frameworks being developed, the real-world transactions beginning to emerge, and their integrity. By illuminating the evolution of cooperative approaches, the Observatory seeks to promote transparency, robust governance, and ambition in Article 6.2 cooperation to support emissions reductions aligned with the 1.5°C goal of the Paris Agreement.

The Article 6.4 mechanism creates a UN-supervised carbon crediting system—the Paris Agreement Crediting Mechanism (PACM)—that issues credits from activities that reduce or remove greenhouse gas emissions while supporting sustainable development.

The mechanism is overseen by the Article 6.4 Supervisory Body that sets the rules, approves methodologies, accredits independent validators/verifiers known as designated operational entities (DOEs), registers activities, and oversees the Article 6.4 Registry and activity cycle of validation → registration → verification → issuance. Unlike its precursor in the Kyoto Protocol, the PACM features a Grievance Mechanism and an enhanced focus on sustainable development and environmental integrity.

Key Developments to Date

2021 Nov

Framework

COP26 Decision 3/CMA.3

Rules, modalities, and procedures established. Article 6.4 Supervisory Body created to oversee implementation. Mandate for 2% cancellation for overall mitigation in global emissions and a 5% share to the Adaptation Fund agreed. A degree of CDM transition authorized.

2022 Nov

Incremental Progress

COP27 Elaborates Framework

Incremental guidance adopted elaborating on COP26's framework. Progress characterized as moving at "uncomfortably slow speed."

2023 Dec

Breakdown

COP28 Produces No Decisions

Negotiations collapsed over methodologies guidance, carbon removals rules, and emissions avoidance eligibility. Delayed full operationalization by at least one year.

2024 Oct

Procedural Departure

Supervisory Body Adopts Standards

SB adopts methodology requirements, removals standard, and sustainable development tool directly—bypassing CMA approval after years of stalled negotiations. Standards enter force October 9, 2024.

2024 Nov

Endorsement

COP29 Endorses Standards

COP29 endorses October standards using "take note" language—interpreted as mild warning against future procedural bypasses. Confirms CDM afforestation/reforestation projects can transition. Operationalization begins.

2025 Feb

Infrastructure

Interim Registry Launched

Supervisory Body launches interim Article 6.4 registry and adopts CDM transition procedures. First CDM transition completed (Myanmar cookstoves). First DOE accredited.

2025 Jun

First Methodology

Landfill Gas Methodology

First Article 6.4 methodology approved for waste sector—landfill gas flaring and destruction. Baseline and leakage standards for mitigation projects adopted.

2025 Nov

Current Status

2,462 CDM Projects Applied

2,462 eligible CDM projects/PoAs applied to transition to PACM. Additional 1,079 new projects provided prior notification. First A6.4ER credit issuance projected for 2026.

Together, these updates show that the PACM is moving from design to deployment. The Article 6 Observatory aims to track progress on Article 6.4, including the standards adopted by the Supervisory Body, methodologies under development, the extent of carryover from the Clean Development Mechanism (CDM), and whether safeguards protect environmental integrity and human rights.