The Project Developer Forum (PD Forum) is a collaborative association and collective voice of companies and practitioners that are developing and financing greenhouse gas (GHG) emission reduction projects in all regions of our globe.
The accumulation of in-depth technical knowledge and broad experience that our members have with global instruments such as the Clean Development Mechanism (CDM), Voluntary Standards and Climate Finance, as well as with country specific initiatives, make PD Forum a unique platform and stakeholder for discussions around the reform of existing, and the creation of new policies and mechanisms to mitigate climate change. Based on our long term experience we are analysing the development of the rules and procedures arising from the Paris Agreement for new Sustainable Development Mechanisms under Article 6 and we are informing how these regulations may fit to Nationally Determined Contributions (NDC) and Voluntary Carbon Markets (VCM).
Of concern is the delays in operationalising the Article 6.4 Mechanism posing material risks to the use of
CERs in the voluntary market, as well as to functioning of the national systems, and the underlying projects that
provide offsets or credits into the domestic markets.
COP26 in Glasgow introduced the new concept of corresponding adjustments into carbon markets. The Art. 6 rules prescribe that for all authorized carbon credits under the Art 6. Mechanisms corresponding adjustments need to be implemented.
After COP26 in Glasgow closed its doors, a sigh of relief ran through the carbon markets. However, after waking up the next morning, question marks were raised. To shed light on the texts that have been decided on in Glasgow, we analysed the most important parts for project developers and present the results in this paper.
This document is a summary of what we, as project developers, have understood from the text regarding the
Art6.4 mechanism and the transition of the CDM (Clean Development Mechanism).
We hold weekly calls on Wednesdays at 1 pm GMT. Call-in details and agenda are distributed before the call. Minutes are sent out shortly after the call.
We have a flexible working group structure, depending on the current regulatory and market issues.
