Session 1A presentation from the 7th Strategic Dialogue of the Carbon Market Platform, 4-5 October 2022

1. Government of Japan
Capacity Building on the implementation for
Article 6 of the Paris Agreement
October 4, 2022
Ministry of the Environment, Japan
Keiko SEGAWA
2022 Strategic Dialogue of the Carbon
Market Platform

2. 2
Many countries mention Article 6 in their NDC
165 countries that submitted new NDCs, 74% (122 countries) mentioned the use of Article 6.
Mention Article 6.2 cooperative approach: 54% (89 countries)
Mention Article 6.4 mechanism: 34% (56 countries)
Mention Article 6.8 non-market approaches: 7% (11 countries)
Mention Clean Development Mechanism (CDM): 7% (11 countries)
The implementation of the Article 6 is now entering a new stage, and capacity building plays a
significant role in its proper implementation.
Nationally determined contributions under the Paris Agreement. Synthesis report by the secretariat, FCCC/PA/CMA/2021/8/Rev.1

3. 3
G7 and G20 outcomes refer Article 6 capacity building
61. Implementation of Article 6:
We stress the importance of strengthening support for capacity-building to developing
countries with respect to the robust implementation of Article 6 and the International Civil
Aviation Organization’s global market-based measure, CORSIA. We will review the objectives
of the Carbon Market Platform and enhance outreach to partner countries in light of the new
guidance and rules for Article 6.
G7 Climate, Energy and Environment Ministers’ Communiqué (2022 Germany)
31.We stress the importance of the implementation of Article 6 of the Paris Agreement, which has
potential to enhance climate actions. We also recognize the need for capacity building in particular
in developing countries for implementation of Article 6 and enhanced transparency framework
under Article 13 in the Paris Agreement as well as to increase the readiness for accessing climate
finance resources for private and public sectors to support national and global climate objectives and
international cooperation.
Chair’s Summary of the G20 Joint Environment and Climate Ministers’ Meeting (2022 Indonesia)

4. 4
International Conference for Implementing Article 6
Hosts：Ministry of the Environment, Japan
Institute for Global Environmental Strategies (IGES)
Support ：UNFCCC Secretariat, COP26 and COP27 presidency
Dates : 17 February 2022 /7 March 2022
Participants: UNFCCC parties, International organizations, private companies
*total:120 countries, over 1000 participants
 Coordination of efforts (RCCs, Parties, International Organizations, Private Sector, etc.) is much needed
 Sharing countries’ experience on Institutional arrangement for authorization and corresponding
adjustments will facilitate implementation
 Support for pilot project and domestic tracking and recording infrastructure including registry
 A6 mechanism baselines and tools: experience of CDM standardized baselines, hands-on support,
 Scaling up of capacity-building activities:
A6 reporting training : replication through RCCs network for other regions
Overview
Key Findings

5. 5
What is needed for enhancing capacity building?

6. 6
Mapping of Article 6 capacity building
(Based on Article 6 Implementation int’l Conference Survey)
UN Agencies
Regional
Multi-lateral Development Banks
Research
Country
UNFCCC A6 CB support CMA.3 mandate
UNDP Support establishment of ITMO operational
processes
To be added
WB PMI: Domestic carbon pricing
Climate Market Club: Country Tech support
Climate Warehouse: meta-Registry for Transparency
AfDB Adaptation Benefit Mechanism(6.8)
To be added
Perspectives Developing specific Article 6 methodology tools
IGES A6 reporting, transparency
IETA Temperate and tools for Private sector, WS on Article 6 readiness aimed at government officials, business
representatives and carbon market experts of countries
GGGI Developing best practice tools and approaches to implement cooperative mechanisms
GS Offset pioneer CA tool document, Information sharing
To be added
Germany Advising government agencies and private sector actors on
the opportunities provided by market-based instruments.
U.K Developed recommendations for capacity building
New
Zealand
Training to support developing countries to achieve Tier 2
reporting for the largest key sources of emissions
Sweden Development of transparency systems
To be added
Eastern African
Alliance
Supporting readiness to implement
Article 6
West African
Alliance
Supporting Article 6 pilot experiences
To be added

7. 7
Analysis on current state of A6 capacity building
 Subject countries:
110 countries which was indicated as ”Yes” for using at least one type of market mechanism,
in the “IGES NDC Database Version 7.6 (October 2021)”*
 Data source of identified A6 capacity building:
“Follow-up survey on A6 capacity building” conducted by MOEJ following the International
Conference for Implementing Article 6 of the Paris Agreement held in Feb. and Mar. 2022.
Results received between Mar.-Aug. 2022 was used.
 Note:
Survey results do not represent all A6 capacity building and should be revised accordingly.
*Excel database downloadable from:
https://www.iges.or.jp/jp/pub/iges-indc-
ndc-database/en

8. 8
Current coverage of global/regional A6 capacity building
Regions
Content
Asia
Eastern
Europe
＆Central
Asia
Europe
Latin
America
&
the
Caribbean
North
Africa&
the
Middle
East
Northern
America
Oceania
Sub-Saharan
Africa
All
regions
(global)
# of countries
indicating the use
of A6*
15 7 34 16 5 2 6 25 110
%
of
countries
with
support
for
A6**
Participation
Reporting
Project
development＆
implementation
PMI,
TCAF,
PMIF,
Ci-Dev
/World
Bank
A6SF,
trainings,
dialogues
etc./ADB
IPCOS/Australia
C
Market
mechanisms
WG,
II-AMT/Perspectives
IPCOS/Australia
Global
Research
Alliance/NZ
IPCOS/Australia
Global
Research
Alliance/NZ
Global
Research
Alliance/NZ
Ci-Dev/World
Bank
COP
Catalyst
for
Climate
action/UK
A6
Early
Movers
Program/Gold
Standard
A6.2
TRA
Project/UNDP
A6
Training
WS,
B-PMI
/IETA,Allcot
6.2
and
6.4
/UNFCCC
Eastern
African
Alliance
on
Carbon
Markets
West
Africa
Climate
Alliance
*Countries indicated as ”Yes” for using at least one type of market mechanism in the “IGES NDC Database Version 7.6 (October 2021)”.
**Data source: “A6 capacity building survey” results received by MOEJ between Mar.-Sept. 2022.
***This analysis is subject to assessment.
Expert
Group
Meeting/UNIDO
Pipeline
Analysis,
SustDev
Initiative
forA6/UNEP
CCCetc.
Global
Research
Alliance/NZ

9. 9
Article 6 Implementation Partnership
• Promoting international coordination of Article6 Capacity Building
• Developing information platform for A6 implementation
• Supporting piloting & knowledge products
Objective
Research Institutions/Private sector
UN Agencies/Multi-lateral Development Banks
Country
• Establishment of policies for
decarbonization (NDC, LTS, etc.)
• Formulation of A6.4 mechanism
baselines
• Corresponding adjustments
• A6 reporting mechanism, etc.
Regional Collaboration
Centers (RCC) /Regional
Alliances
• Regional assistant of A6 implementation
• Replication, scale-up, and horizontal
expansion of CB activities
• Support in global collaboration
• Provide financial support, including funding program
• Provide technical and hand-on support (tool development, etc.)
• Mobilize financial resource in private sector
• Project development and implementation
 Facilitate understanding of A6 rules and linkage
with NDCs
 Sharing of good practices of institutional
arrangements incl. authorization and recording
 Implement Mutual learning and training for A6
reporting and review
 Support for baseline methodology (tool
development, etc.)
 Principle development for high integrity carbon
market
Area of work

10. 10
Preparatory Meeting for the Article 6 Implementation Partnership
Opening remarks by YAMADA Miki, State
Minister of the Environment, Japan
Group photo
Results & Next Steps
Shared the analysis on the Article 6 capacity building among the participants and received support to
proceed international collaboration in an effective manner
Discussed the draft workplan for the partnership for next three years
Received support for launching the partnership at COP 27 to accelerate the Article 6 implementation
 Hosts: Ministry of the Environment, Japan and IGES
 Date: 9 September 2022
 Place: Kamakura, Kanagawa Prefecture
 Participants: Experts from 19 countries and 14 organizations
Australia, Bhutan, Brazil, Canada, Colombia, Egypt, EU, Gambia, Germany, India, Indonesia, Japan, New
Zealand, Republic of Korea, Saint Kitts and Nevis, Saudi Arabia, Singapore, Thailand, UK, ADB, AILAC, East
African Alliance, GGGI, IETA, IGES, Perspectives, UNDP, UNEP-CCC, UNFCCC, UNIDO, West African Alliance,
World Bank
Results
Summary

11. 11
Conclusions
 The needs for capacity building for Article 6 implementation have been
identified and can be categorized into (1) understanding of Article 6 itself, (2)
technical matters such as baseline setting and methodologies, and (3)
domestic institutional arrangement. In particular, sharing best practices is
very useful.
 Currently, countries and organizations are providing support based on their
own objectives, and networking to share information on Article 6
implementation is particularly important. One of the possible approaches is
to establish platform to coordinate Article 6 implementation support.
 Japan is aiming to launch the "Article 6 Implementation Partnership" at
COP27 and will also work closely with other countries and international
organizations, leading to effective implementation of the Article 6.

12. 12
Thank you for your kind attention