Background

The Paris Agreement Crediting Mechanism (PACM), established under Article 6.4 of the Paris Agreement, provides a multilateral framework to support the cost-effective implementation of Nationally Determined Contributions (NDCs) and mobilize climate finance through international cooperation. By enabling the generation of emission reductions and creating pathways for international carbon market participation, PACM can help countries attract investment, support mitigation action and advance national climate priorities.

PACM is designed with safeguards to ensure environmental integrity, including requirements related to additionality, conservative baselines, transparency and the avoidance of double counting. It also supports sustainable development objectives and offers a structured pathway for countries, particularly developing countries, to use carbon markets in support of NDC implementation. As implementation of Article 6.4 gains momentum, there is growing interest among governments, the private sector and technical stakeholders in understanding how the mechanism works in practice and how it can support financing needs for mitigation action.

Within this context, PRAKRITI 2026 will feature a dedicated PACM track focused on the role of Article 6.4 in unlocking high-integrity carbon finance, strengthening readiness for implementation and fostering dialogue among public and private actors. The track will provide a practical space to explore the global value proposition of PACM, its operational requirements and its relevance for both host countries and investors.

Objectives

The PACM track at PRAKRITI 2026 aims to:

• provide an overview of Article 6 fundamentals, including the linkages between Articles 6.4 and 6.2;

• strengthen understanding of the role of PACM in mobilizing carbon finance for NDC implementation;

• explain the process for developing Article 6.4 activities, including eligibility and applicability considerations;

• provide greater clarity on the Rules, Modalities and Procedures governing Article 6.4;

• improve understanding of the roles and responsibilities of different actors involved in PACM implementation, including Designated Operational Entities;

• highlight how PACM can reduce risks and transaction costs for private sector participation; and

• support government agencies and other stakeholders in moving from policy intent to implementation readiness, including through partnerships and host country frameworks.

Expected outcomes

The event, coorganized by the UN Climate Change Regional Collaboration Centre MENA and South Asia (RCC MENA), is expected to:

• strengthen participants’ understanding of how Article 6.4 can support the implementation of NDCs;

• build capacity among government stakeholders on the basics of Article 6.4, including key processes, requirements and responsibilities;

• build capacity among private sector stakeholders to identify and develop Article 6.4 activities;

• improve understanding of the differences between the Clean Development Mechanism (CDM) and PACM;

• increase familiarity with the Article 6.4 project cycle, timelines, forms and documentation requirements; and

• foster dialogue between governments, private sector actors, financial institutions and technical experts on cooperation opportunities and implementation pathways under PACM.

Target audience

The event is intended for representatives from government, the private sector, financial institutions, civil society, academia and technical organizations engaged in climate policy, carbon markets and NDC implementation. This includes central and state government agencies, relevant sectoral ministries, business associations, project developers, banks and financial institutions, carbon market actors, technical consultants, NGOs, academic institutions, development partners and implementing organizations supporting mitigation action.