Carbon offsetting platform, Abatable, and Gold Standard have joined forces to address key knowledge gaps around new regulations and policy changes affecting carbon markets, including those underpinning Article 6 of the Paris Agreement.
Article 6 allows countries to transfer emissions reductions between each other to enable flexibility in meeting national climate goals. However, parties at COP28 failed to reach a consensus on key points within Article 6, with many countries clashing on carbon removals and issues of transparency and climate ambition.
Abatable and Gold Standard’s joint agenda, therefore, will focus on fostering a community of practice around the lifecycle of Article 6 implementation, from the regulators and policies through to the implications for developers and investors.
The partnership will utilise two work streams, including a webinar and roundtable series sharing insights and best practices around national carbon policies, and actionable policy insights to support governments to develop carbon market frameworks.
“Our partnership with Gold Standard marks a key moment for both our organisations as we work to better support governments, project developers and investors to navigate the complexities of Article 6,” said Valerio Magliulo, CEO and co-founder of Abatable.
“We need strong carbon markets to bring climate finance to the landscapes most in need, and Article 6 has immense potential to unlock the flows of finance that are required. But it is a complex mechanism. Our partnership will address the skills and knowledge gap that currently exists around Article 6, and we’re thrilled to be joining forces with Gold Standard to help us get there.”
So far, only a handful of countries have issued regulation to implement Article 6. The next few years, however, are expected to see a growth in the number of countries taking steps to use Article 6, as well as to regulate market activities more widely.
Under the mechanism, a host country can transfer Article 6.2 units (ITMOs) to a buyer country through a bilateral agreement, or to a private entity. ITMOs are designed to benefit host countries by attracting investments, facilitating technology and knowledge transfer, creating jobs and enabling sustainable development, while buyers can meet their Nationally Determined Contributions through cost-effective projects.
Margaret Kim, CEO of Gold Standard, added: “By smoothing the way for countries and companies to effectively contribute to global climate goals we can help carbon markets achieve the highest levels of environmental integrity and drive more sustainable development. Through this programme, we’re committed to ensuring that the ambition of the Paris Agreement is met with the rigor and transparency necessary to deliver real impact where it matters most.”
