International Projects under the Paris Agreement (Compliance Carbon Market)

Under the bilateral cooperation mechanism of the Paris Agreement (Article 6.2), countries can collaboratively engage in the implementation and funding of mitigation activities. The emission reductions generated in the host country of the activity can be used as so-called ITMOs (Internationally Transferred Mitigation Outcomes) and count towards the acquiring country’s climate mitigation objectives (NDCs). Once the ITMOs have been transferred, the transferring and the acquiring countries adjust their greenhouse gas registries accordingly, making so-called “corresponding adjustments”. 

Currently, myclimate is developing and consulting on compliance projects in countries that have or are preparing a bilateral agreement with Switzerland, including Senegal, Ghana, Tunisia, Morocco, Kenya, Malawi, Mozambique, Thailand and Georgia. We are further looking into opportunities in Chile, Uruguay, Peru, Ukraine, Vietnam and Brazil. Please reach out to us to learn about other countries.

Why is it valuable to develop projects under Article 6 of the Paris Agreement?

To counter the climate crisis, we need to mobilise all means at our disposal. The mechanism of Article 6 allows countries to collaboratively engage in quick and efficient reduction of greenhouse gas emissions. For implementers, these are some of the key benefits of projects under Article 6:

• High accountability and low risk of double-counting thanks to government involvement and corresponding adjustments
• Investment in high-hanging fruit, complex and expensive approaches and technologies thanks to multi-year buyer agreements
• Possibility of funding for the project development phase
• Allows to go beyond single methodologies, to apply more integrated approaches

Are you looking for support in the development of a new project and in the search of financing options?

Climate change mitigation projects under Article 6 need to fulfill certain basic criteria. Please consider the following key eligibility criteria

The project activity … 

• is new and will be implemented in a single country
• is aligned with the host countries’ NDCs and goes beyond the unconditional target
• holds considerable potential for large scales (> 50,000 tons of CO2eq per year)
• can make reference to a CDM or Gold Standard methodology
• does not build on biological sequestration, e.g. biochar, reforestation, soil organic carbon
• is additional and would not happen without the generated carbon income

Technologies we are currently applying in Article 6 projects 

• E-Mobility in Urban Public Transport (see example) 
• Solar Pumping and Irrigation Systems
• Alternate Wetting and Drying
• Solar Home Systems 
• Electric Cooking 
• Cooling and Refrigeration  
• Solar Microgrids
• Biogas from Manure and Organic Waste 
• Efficient Household Heating (Efficient Stoves, Biomass Products and others) 
• Geothermal Energy 
• Waste Management 

Further eligible project technologies include approaches like district heating, industrial energy efficiency, cement production, avoidance of nitrous oxide emissions in agriculture, and others.

How does the development of projects for the international compliance market work?

Projects for the compliance market follow an internationally recognised development process. The entire project lifecycle builds on close contact and exchange between stakeholders and partners. Please expect a period of up to one year before the project can start and two years until the first ITMOs are issued.

• During the initial project sourcing phase, our experts assess the feasibility of the project and develop a concept note with the partners.
• In the due diligence phase, we examine the project and implementing partner thoroughly, including financial considerations.
• In the development phase, we develop the final project design, which is then checked externally (project validation) and authorised by the host country and acquiring country.
• During implementation, we support project monitoring, reporting and verification towards the issuance and monetisation of ITMOs. 

Do you have a project idea for a project that meets the basic criteria above?

• Please reach out to us if you would like to discuss your project idea and find out how we can support you. Send us more information on your proposed project, including technology, country, scale, implementer, stakeholders and funding need (if any) to Article6@myclimate.org

• Once you submit your project outline, myclimate will assess your project and get in touch with you as soon as possible.

Further information: 

The future of carbon offsetting: Article 6 of the Paris Agreement explained

What is bilateral climate protection?

What is the Paris Agreement? 

Would you like to submit a project idea for the voluntary carbon market (VCM)?