Background
In preparation for the next round of NDC 3.0, RCC Latin America is providing technical assistance to the Government of Costa Rica through the Ministry of Environment and Energy (MINAE). This support includes a series of capacity-building and institutional strengthening activities aimed at enhancing national capacities to integrate cooperative approaches under Article 6 of the Paris Agreement and to effectively apply the ICTU guidance in the design and submission of Costa Rica's NDC 3.0.
A national workshop was convened to strengthen Costa Rica’s technical and institutional readiness to participate in international carbon markets, with a focus on the roles and responsibilities of the host Party under both Article 6.2 and A6.4, and to support the strategic orientation of the NDC 3.0 update process. The event provided a platform to examine how the ICTU framework and the outcomes of the first Global Stocktake (GST) can inform the ambition, structure, and implementation of the updated NDC.
Additionally, the workshop also explored the role of Mitigation Contribution Units (MCUs) within Costa Rica´s domestic carbon market framework, as well as the strategic opportunities to embed Article 6 mechanisms into national climate policy, ensuring alignment with national development priorities, and the evolving transparency and ambition requirements under the Paris Agreement.
This process is especially important as Costa Rica plans to submit its updated NDC 3.0 by October 2025. Reaching this milestone will enable the country to show increased ambition and reaffirm its commitment to global climate goals.
Objectives
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Support the development of Costa Rica’s NDC 3.0 by aligning it with ICTU elements and Global Stocktake messages to enhance ambition, transparency, and implementation pathways, and by identifying how Article 6 cooperation and carbon markets can be effectively reflected in the updated NDC.
Key Insights
1. NDC 3.0 in the Paris Agreement Ambition Cycle
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Provided an overview of the NDC ambition cycle, highlighting their evolution into “NDC 3.0” as a cornerstone of the Paris Agreement. Addressed key implementation gaps and tools, introduced ICTU elements, and underscored the need to respond to GST outcomes with higher ambition, balanced action, and inclusive engagement of non-Party stakeholders. Reviewed the 2024 NDC Synthesis Report and its implications for national planning.
2. Understanding Article 6: Opportunities and Implications
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Provided an overview of Article 6 of the Paris Agreement, including its market and non-market approaches. Emphasized its role as a flexible cooperation tool that requires strong governance, transparency, and environmental integrity, and its strategic value for raising ambition and mobilizing climate finance, particularly for high-impact projects.
3. Cooperative Approaches under Article 6.2
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Focused on bilateral and multilateral cooperation through the transfer of ITMOs. Highlighted key implementation elements such as authorization, tracking, reporting, and accounting, supported by appropriate legal and institutional frameworks.
4. Paris Agreement Crediting Mechanism (PAMC) under Article 6.4
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Aimed at strengthening MINAE’s institutional capacities to engage with the centralized mechanism under Article 6.4. Covered participation requirements, activity approval and authorization procedures, and governance. Discussed the issuance and use of A6.4ERs and the role of MCUs, with a focus on enabling public and private sector engagement.
5. Non-Market Approaches under Article 6.8
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Explored how voluntary, non-market approaches can support Costa Rica’s NDC implementation in line with national priorities. Highlighted their potential to drive transformational actions in adaptation, resilience, sustainability, and clean energy—without relying on mitigation outcome transfers.
Next Steps
A follow-up technical session will be organized with the NDC team to deepen the understanding and application of ICTU elements (Information for Clarity, Transparency, and Understanding) in Costa Rica’s NDC 3.0. This session will support alignment with the Paris Agreement’s guidance and the outcomes of the first Global Stocktake.
Costa Rica will continue to strengthen its regulatory frameworks for both the domestic carbon market and international cooperation under Article 6 of the Paris Agreement. RCC Latin America will provide technical support in the development and refinement of legal instruments, institutional arrangements, and national procedures to ensure transparency, environmental integrity, and alignment with national priorities and Article 6 key decisions.
