A series of Regional Dialogues and a survey provide insight into capacity building needs to ramp up market and non-market approaches under the new Article 6 

 With the Glasgow Climate Pact adopted, Parties can now shift focus and accelerate implementation. Decisions at COP26 in Glasgow on Article 6 give certainty and predictability to both market and non-market approaches in support of mitigation as well as adaptation. COP26 decisions also elaborated specific focus areas for capacity building across Article 6.2 and 6.4 and mandated that the secretariat provides capacity building in developing countries through the Regional Collaboration Centres. 

With a focus on regional collaboration and a wide network, the RCCs are ideally positioned to advance this effort. Relevance of cooperative approaches to implement NDCs increased from 46 to 85 percent in new or updated NDCs compared with those previously submitted. 

Decisions in Glasgow (Decision 2/CMP.16, paragraph 19) also authorized a transfer of USD $10 million from the Trust Fund for the Clean Development Mechanism to the Trust Fund for Supplementary Activities to support developing country efforts to the Article 6.4 mechanism. In addition, these funds will support transition of clean development mechanism project activities and programmes to the Article 6.4 mechanism if they are eligible for transition. 

To fulfill these mandates, the six RCCs hosted three all-virtual Regional Dialogues on Article 6 Capacity Building Needs from 10 to 12 May for key regions - Africa, Latin America and the Caribbean, and Asia-Pacific and the Middle East. Each Regional Dialogue focused on debriefing stakeholders on COP26 Article 6 outcomes, including the CDM transition, and gathering information on the capacity building needs of the Parties regarding all aspects of Article 6 and the CDM transition. 

Key messages from each of the Regional Dialogues give an idea of topics discussed and reflect key takeaways presented at the Bonn SB56 meeting. 

Raised in the discussions with countries in Africa organized by RCC Lome, RCC Kampala and RCC MENA and SA: 

• A request for UN Climate Change to develop a blueprint or framework document detailing implementation process steps for Article 6.2, Article 6.4, and Article 6.8  

• Capacity-building needs were requested for authorization of ITMOs, setting up the registry, managing corresponding adjustments, setting baselines and robust reporting. 

From the dialogue with Latin America and Caribbean countries organized by RCC Panama and RCC St. George’s: 

• Need for clear understanding was raised on the decision-making process on the use of Article 6 for countries, for example for infrastructure to design, reporting requirements on Art. 6.2 and decision on projects for new DNAs that will need to be developed. 

• Support needed to enhance understanding of how to translate higher ambition in NDCs when not expressed in C02eq, for sectors that have co-benefits of mitigation but focus on adaptation. Linkages between Article 6 and carbon pricing instruments were explored. 

Raised in discussion with countries in Asia-Pacific and the Middle East, which was organized by RCC Bangkok and RCC MENA and SA: 

• National mitigation activity and crediting should align with standards for environmental integrity and sustainable development requirements of Article 6. 

• Need to develop baseline approaches and other methodological requirements to be applied for Article 6.4 activities. 

• Support for understanding technical aspects (environmental integrity; development of baselines) and institutional governance to operationalize Article 6.2, 6.4, and 6.8. 
   

To completement the input gathered at the Regional Dialogues, the "Survey on Capacity Building Needs on cooperative approaches referred in Article 6 of Paris Agreement" was rolled out to UNFCCC NFPs and DNAs. The survey provides insight on priority, challenges and needs for capacity building on Article 6.2 and Article 6.4, with the results identifying the top four priority areas for capacity building: 

• General outcomes of the COP26 decisions and SB56 outcomes in relation to Article 6 

• Supporting Parties in developing institutional arrangements, including in relation to reporting 

• Supporting Parties to ensure that participation in the cooperative approach and the authorization, transfer and use of ITMOs is consistent with guidance on cooperative approaches and relevant decisions 

• Develop the technical capacity to design and set baselines for application in host Parties 

The outcome of these three Regional Dialogues and survey was presented at a side event at SBs on 8 June. James Grabert, Director of Mitigation Division met with development organizations and shared these outcomes to explore collaboration opportunities for capacity building activities. 

The Dialogues and survey outcomes play an instrumental role in development of the capacity building work programme. All six RCCs will remain actively engaged in the process, building on strong connections with the DNAs and the UNFCCC NFPs in their respective regions. This should guide work under the Article 6 decisions agreed in Glasgow and can tap the power of regional collaboration to accelerate implementation.