Background
In recent years, there has been a significant global increase in the adoption of carbon pricing mechanisms and Article 6 of the Paris Agreement as key instruments for achieving Nationally Determined Contributions (NDCs). Governments and private sectors worldwide are increasingly recognizing the value of carbon pricing tools—such as carbon taxes, emissions trading systems (ETS), and voluntary carbon markets—for incentivizing greenhouse gas emissions reductions. This shift is driven by the growing urgency to meet climate targets and the clear economic benefits associated with carbon pricing, such as revenue generation and fostering innovation in low-carbon technologies.
Article 6 of the Paris Agreement further enhances this momentum by providing a framework for international cooperation on carbon markets. It allows countries to engage in cooperative approaches and the transfer of mitigation outcomes across borders, creating flexibility in how countries meet their climate commitments. Many countries, particularly emerging economies, are integrating Article 6 mechanisms into their climate strategies to unlock new opportunities for financing, investment, and partnerships, ultimately strengthening the global response to climate change while achieving their NDCs. This growth highlights the important role that carbon pricing and Article 6 play in driving sustainable, long-term climate action on a global scale.
In West and Central Africa, countries are increasing recognising the benefits of these instruments in achieving their NDCs and driving climate action. While some countries are advanced in this process, others are faced with limited capacity to take advantage of these instruments.
The UNFCCC and its Regional Collaboration Centre for West and Central Africa (RCC WAC Africa), in collaboration with the West African Alliance on Carbon Markets and Climate Finance, are organising a regional workshop on Article 6 and Carbon pricing, which will bring together key stakeholders, including government officials, private sector representatives, and international development agencies, to deepen their understanding of the operational aspects and requirements of Article 6, while fostering regional dialogues on effective carbon pricing strategies, stakeholder engagement, and implementation pathways. These events will also serve as a platform to share best practices, challenges, and successes in establishing Article 6.4 Designated National Authorities (DNAs) and engaging in cooperative approaches. Additionally, they will assist participants in developing strategies and plans to transition to Article 6.4 mechanisms and integrate Article 6 into their NDCs, while enhancing the technical and legal knowledge of regional stakeholders regarding participation and compliance requirements.
Objectives
- Deepen the understanding of the operational aspects and requirements of Article 6.2 and Article 6.4.
- Foster greater regional dialogues on effective carbon pricing strategies, stakeholder engagement, and implementation pathways.
- Facilitate a platform for sharing best practices, challenges, and successes in establishing Article 6.4 DNAs and engaging in cooperative approaches.
- Assist the participants in developing better strategies and plans to transition towards Article 6.4 mechanisms, and integrating Art. 6 in their NDCs.
- Strengthen the technical and legal knowledge of regional stakeholders about participation and compliance requirements.
Targeted audience
- Designated National Authorities
- Other relevant officials in associated roles across various ministries/national agencies, UNFCC National Focal Points, private sector players, etc.
Ways forward
Participants expressed their enthusiasm for carbon pricing initiatives but highlighted several key concerns. These included Cameroon’s current low emission levels (which could limit carbon market opportunities), low carbon credit prices in the region, and challenges with the emissions monitoring methodology. These methodological challenges stem from their sophistication and limited capacity to apply them in sectors like agriculture and forestry, as well as reporting and verification issues.
Participants also raised concerns about potential double-counting of emissions, alongside low technical capacity, and the need for stronger involvement of the banking sector. Ensuring local communities benefit from carbon pricing and carbon market gains was also stressed.
Representatives from the private sector expressed their commitment to collaborating with the government in designing a carbon pricing instrument suitable to Cameroon’s context.
Throughout the workshop, Cameroonian officials demonstrated a robust intention to explore carbon pricing instruments, with the ability to limit emissions growth and increase revenue for climate action.
Based on the workshop outcomes, RCC WAC Africa and the Government of Cameroon, together with national stakeholders, will prepare a feasibility report on carbon pricing instruments for the country.
RCC WAC Africa will continue to assist Cameroon in designing and developing carbon pricing instruments for implementing its NDC.
