The 2023 edition of the Latin America and the Caribbean Climate Week (LACCW) marked a significant milestone in the region's preparations for the implementation of Article 6 of the Paris Agreement. The event provided a key platform allowing Latin American countries to engage in dialogues, training sessions and other events to collectively advance towards their effective participation in Article 6.
The Latin America Regional Dialogue on Article 6 was one of the key events to take place on the margins of LACCW in Panama. The Dialogue was organized collaboratively by the UNEP Latin America and the Caribbean Office and supported by the RCC Latin America, the Center for Clean Air Policy (CCAP), and the NDC Partnership.
According to the 2022 NDC and LT-LEDS synthesis report an increasing number of countries express interest in utilizing the cooperative approaches under Article 6 to achieve their Nationally Determined Contributions (NDCs), and the region has therefore actively undertaken the necessary preparations.
Approximately 88% of countries have shown their intention to leverage Article 6, underscoring their commitment to effective collaboration. However, the success of these preparations relies on countries' in-depth understanding of the current NDCs and future updates, as highlighted by Andrea Camponogara, RCC Global Lead, during the event's welcome remarks.
Article 6 Regional Readiness Project
A promising regional project was introduced, focusing on Capacity-building on Carbon Markets and Article 6 in Latin America, and aiming to foster cooperation among participating countries, enhance their understanding of Article 6 and ensure their compliance with the formal requirements for participation. The Carbon Markets and Article 6 Regional Readiness for Latin America is a project funded by the Green Climate Fund and implemented by UNEP, which involves Panama, Guatemala, Nicaragua, Honduras, Argentina, Dominican Republic, Costa Rica, and El Salvador.
The Article 6 Regional Readiness Project has a twofold objective: (a) promote the generation of knowledge and (b) encourage regional collaboration among the participating countries. It will be key to enable countries to develop their institutional, technical, and operational capacities, paving the way for the successful implementation of Article 6 of the Paris Agreement and the establishment of effective carbon markets.
Ana Davila, Project Manager for the Article 6 Regional Readiness Project at UNEP, emphasized the vulnerability of Central and South America to the impacts of climate change. She stressed the importance of the inclusive approach embedded in the Article 6 design, which encourages the participation of all countries and private sector stakeholders. By actively involving a wide range of actors, Article 6 can effectively address the unique challenges faced by Latin American nations and create a more resilient and sustainable future for the region.
Sharing experiences on article 6 options
After the presentation, the discussion revolved around Article 6 Readiness, signifying the proactive involvement of Latin American nations in getting ready to participate in Article 6. The dialogue brought together delegates from Colombia, Panama, and Peru, presenting a unique platform for these countries to share insights, exchange best practices, and promote collaborative efforts in the effective implementation of Article 6.
Seven of seventeen Latin American countries have already initiated bilateral cooperative agreements (under Article 6.2) with buyer countries such as Switzerland, Singapore, Japan, and Sweden. These agreements also demonstrate how Latin American countries seek to leverage the different tools within Article 6, to achieve their NDCs and mobilize resources.
At the dialogue, delegates particularly insisted on the importance of cooperation among Latin American nations in facilitating, understanding and meeting the participation requirements outlined in Article 6. They also recognized the potential of these instruments carbon markets as an effective tool to advance NDC goals, generate greater ambition, and contribute to sustainable development efforts.
Following the productive meeting, Parties representatives requested UNEP to develop a regional platform, in collaboration with RCC Latin America and CCAP. This platform seeks to facilitate collaboration and information exchange among Latin American countries about the implementation of Article 6.
Foreseen to launch early in 2024, the platform will serve as a valuable resource for countries in Latin America to share experiences, best practices, and innovative approaches in implementing Article 6: by fostering such collaboration and knowledge exchange, the region's efforts in addressing climate change and advancing their NDCs implementation will be enhanced.
