On November 11, 2024, one of the first substantive outcomes of the 29th Session of the UN Conference of the Parties to the UN Framework Convention on Climate Change (COP29) was approved. The President of COP19 introduced a draft decision of the Conference of the Parties Serving as the Meeting of the Parties to the Paris Agreement (CMA) Bodies. The decision took note of the Article 6.4 Supervisory Body's adoption of two standards (one on "methodologies" and one on "removals"), while also reiterating the authority of the Supervisory Body to prepare the rules for the implementation of Article 6.4.
Article 6.4 of the Paris Agreement aims to replace the Clean Development Mechanism (CDM) of the Kyoto Protocol, and to establish a global carbon credit market to promote the reduction of greenhouse gas (GHG) emissions. The standards prepared by the Supervisory Body establish criteria for the implementation of this global market, and aim for a uniform approach for two elements of the mechanism: (i) the development and evaluation of the methodologies applicable to Article 6.4; and (ii) the requirements for activities involving GHG removals under the Article 6.4 mechanism. These standards will assist project developers in creating and submitting their methodologies, and allow projects to be registered under the Article 6.4 mechanism.
The decision allows the Supervisory Body to review and amend such standards, once ratified by the CMA, ensuring the ability to quickly adjust the Article 6.4 mechanism when necessary. The guidelines set out in the Standards are not yet finalized and may be amended, based on contributions from the signatory countries of the Paris Agreement and revisions by the Supervisory Body.
The standard on Methodologies states that methodologies must be "real, transparent, conservative, [and] credible." In addition, the methodologies must encourage ambition over time, be aligned with countries' NDCs, and impose standard baselines. It is also concerned with demonstrating additionality, leakage, non-permanence and reversals. In regard to GHG removals, the document establishes the core tenets, in addition to requirements for registration under the Article 6.4 mechanism, including monitoring, reporting, accounting for removal, addressing reversals, avoiding leakage, and respect for human rights and those of indigenous peoples.
The decision of the CMA is a forward step in the implementation of the Article 6.4 mechanism, but does not yet conclude the structure of Article 6.4, nor does it finalize the regulations necessary for the international carbon-credit market.
Visit us at mayerbrown.com
Mayer Brown is a global services provider comprising associated legal practices that are separate entities, including Mayer Brown LLP (Illinois, USA), Mayer Brown International LLP (England & Wales), Mayer Brown (a Hong Kong partnership) and Tauil & Chequer Advogados (a Brazilian law partnership) and non-legal service providers, which provide consultancy services (collectively, the "Mayer Brown Practices"). The Mayer Brown Practices are established in various jurisdictions and may be a legal person or a partnership. PK Wong & Nair LLC ("PKWN") is the constituent Singapore law practice of our licensed joint law venture in Singapore, Mayer Brown PK Wong & Nair Pte. Ltd. Details of the individual Mayer Brown Practices and PKWN can be found in the Legal Notices section of our website. "Mayer Brown" and the Mayer Brown logo are the trademarks of Mayer Brown.
© Copyright 2024. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.
