Towards a Coordinated Caribbean Approach to Article 6 of the Paris Agreement

Regional Workshop Triggers Coordinated Action on Paris Agreement’s Article 6 in the Caribbean

Credit: Sean Witter / Pexels

Regional Workshop and Context

Representatives from Eastern Caribbean States, Belize, The Bahamas, and Jamaica gathered in Saint Lucia from 21 to 23 October 2025 to participate in the workshop “Strategic Pathways for Small Island States in International Carbon Markets: Exploring Opportunities and Trade-offs.” The event, organized by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in collaboration with the Organisation of Eastern Caribbean States (OECS) and with the participation of the UNFCCC Regional Collaboration Centre for the Caribbean (RCC Caribbean), brought together government officials, development partners, and technical institutions to explore strategic options for engaging in international carbon markets under Article 6 of the Paris Agreement.

The discussions were framed within the broader regional momentum toward coordinated carbon market engagement. Building on the guidance of the Organisation of Eastern Caribbean States (OECS) Council of Ministers Environmental Sustainability, which endorsed the formation of a Caribbean Alliance on Carbon Markets and Climate Finance at its eleventh meeting in 2024, the discussions aimed to harness synergies among Member States. The Council encouraged the development of a regional Article 6 strategy, which includes implementing an intra-OECS Programme of Activities (PoA) and promoting Internationally Transferred Mitigation Outcomes (ITMOs).

This workshop also aligns with the recent CARICOM commitment to leveraging the region's natural resources through credible carbon markets based on transparency, accountability, and environmental integrity. In this context, CARICOM’s call for support in developing a regional carbon market highlights a growing consensus among Caribbean leaders to mobilize carbon finance for sustainable development.

Exploring Regional Opportunities under Article 6

Discussions underscored the shared regional interest in exploring how carbon markets, particularly Article 6, can advance national climate and development priorities while accounting for the unique circumstances of Caribbean Small Island Developing States (SIDS). Participants explored the implications of authorizing ITMOs, applying corresponding adjustments, and strengthening governance and institutional capacities to ensure transparency and environmental integrity.

The meeting also considered the potential advantages of collective action through the operationalization of the Caribbean Alliance on Carbon Markets and Climate Finance, with a particular focus on leveraging PoAs to overcome the scale limitations faced by individual Caribbean states. By bundling micro and small-scale mitigation activities, especially in priority sectors such as cooling, PoAs can reduce transaction costs, unlock economies of scale, and support common NDC priorities across the region. In this context, Saint Lucia joined the regional cooling initiative alongside Grenada, reinforcing collective efforts to advance mitigation actions in this priority sector.

Participants examined both the seller and buyer perspectives in carbon market engagement. On the seller side, they explored the case of The Bahamas, which is advancing legal and institutional frameworks to enable participation in Article 6 transactions and position itself as a host country for high-integrity mitigation activities. On the buyer side, engagements with partners such as the KliK Foundation, the European Union, and the Eastern Caribbean Civil Aviation Authority provided valuable insights into buyer expectations, integrity requirements, and the types of carbon market projects most likely to attract demand.

Next Steps: Strengthening Regional Coordination

The meeting concluded with broad agreement on the importance of maintaining momentum through continued technical dialogue, strengthened institutional capacity, and political engagement. In this regard, participants welcomed further collaboration with regional and international partners to advance a coordinated Caribbean approach to carbon markets consistent with the region’s sustainable-development priorities. As part of these efforts, the Alliance is currently exploring the possibility of embedding a coordinator within the OECS Commission to help steer and align regional activities related to carbon market cooperation.