Background

Article 6.4 of the Paris Agreement establishes the Paris Agreement Crediting Mechanism (PACM), a centralized mechanism designed to support the cost-effective implementation of Nationally Determined Contributions (NDCs) while facilitating voluntary international cooperation and climate finance. By enabling the generation of Article 6.4 Emission Reductions (A6.4ERs), internationally transferred mitigation outcomes (ITMOs) and Mitigation Contribution Units (MCUs), the mechanism provides countries and the private sector with pathways to mobilize investment for mitigation activities aligned with national climate priorities.

PACM is built on robust rules and safeguards to ensure environmental integrity, including requirements for additionality, conservative baselines, avoidance of double counting through corresponding adjustments and the delivery of overall mitigation in global emissions (OMGE). The mechanism also promotes sustainable development while respecting social and environmental safeguards.

As the first Article 6.4 methodologies are approved and eligible Clean Development Mechanism (CDM) activities begin transitioning to the new mechanism, attention is shifting from policy development to practical implementation. Countries, project developers, investors and financial institutions are increasingly preparing to participate in PACM and explore its potential to mobilize carbon finance in support of NDC implementation.

Against this backdrop, the PACM Implementation Dialogue, organized as part of the IETA Asia Climate Summit 2026, will provide an implementation-focused discussion on the opportunities, requirements and practical steps for engaging with the Paris Agreement Crediting Mechanism.

Objectives

The dialogue aims to:

• Provide an overview of Article 6, with particular focus on the relationship between Articles 6.2 and 6.4.
• Explain the role of PACM in mobilizing carbon finance for NDC implementation through international cooperation and domestic carbon market frameworks.
• Clarify the differences between A6.4ERs, ITMOs and Mitigation Contribution Units, including authorization considerations.
• Present opportunities and requirements for transitioning eligible CDM activities to PACM.
• Explain the methodologies, documentation and project development process required under Article 6.4.
• Highlight the key differences between PACM and the CDM, including safeguards, stakeholder engagement and transparency requirements.
• Demonstrate how PACM can provide a streamlined and cost-effective pathway for project developers while maintaining high environmental integrity.
• Support governments, project developers, investors and market participants in identifying investment and partnership opportunities for implementation.

Expected outcomes

Participants are expected to:

• Strengthen their understanding of PACM and its contribution to NDC implementation and climate finance.
• Improve their knowledge of the requirements and practical considerations for developing Article 6.4 activities.
• Enhance readiness to develop new PACM project pipelines.
• Better understand authorization pathways and the use of A6.4ERs and Mitigation Contribution Units.
• Gain practical insights into methodologies, documentation requirements and the Article 6.4 project cycle.
• Understand the comparative advantages of PACM relative to bilateral Article 6.2 approaches.
• Identify potential investment, financing and partnership opportunities aligned with national climate priorities.

Target audience

The dialogue will bring together representatives from:

• Government institutions.
• Private sector entities with mitigation project portfolios.
• Banks and financial institutions engaged in climate and green finance.
• Carbon market participants, including project developers, aggregators, traders and exchanges.
• Technical consultants, verifiers and investment facilitators.
• Industry chambers and business associations.
• Civil society organizations and environmental NGOs.
• Academic and research institutions.
• Development partners and implementing organizations supporting climate mitigation initiatives.