Paris Agreement Article 6.2 & 6.4 Update: IGES Webinar, NDC Scope
This article is an automatically translated version of the original Japanese article. Please refer to the Japanese version for the most accurate information.
This is a newsletter from Sustainacraft Inc. This article is Section B of VCM Updates (Voluntary Carbon Market Updates) focusing on trends in major international regulations. For inquiries, please contact us here.
In this article, we will report on the trends in major carbon-related policies announced from September to October 2025, following the items below.
In addition to our monthly summary of developments regarding Paris Agreement Article 6.2 and 6.4, this month we will discuss a co-hosted webinar with IGES on the 31st, considerations on whether Article 6 activities fall within or outside NDCs based on the case of Thailand, and the positioning of REDD+ under Article 6.4.
- Co-hosted webinar with IGES before COP30 (Oct 31): How to leverage nature in corporate strategy (link)
- Paris Agreement in general
- Paris Agreement Article 6.2 (Bilateral Cooperation)
- Paris Agreement Article 6.4 (Paris Agreement Credit Mechanism (PACM))
- Analysis: From Thailand's case, is Article 6 within or outside the NDC?
- Analysis: Positioning of REDD+ under PACM
Keywords: Article 6, NDC, JCM, REDD+, COP30, Nature
This article was written by Chisa Umemiya (who joined our company in July 2025 after working at the Institute for Global Environmental Strategies (IGES) and the National Institute for Environmental Studies).
Co-hosted Webinar with IGES before COP30: How to Leverage Nature in Corporate Strategy
COP30 will be held in Belém, Brazil, from November 10 to 21. The Brazilian government has set an action agenda, emphasizing the importance of implementation by non-governmental actors, including corporations. Reflecting the international discussion trends leading up to COP30, our company will discuss with experts from IGES's "Biodiversity and Ecosystem Services" field on how to leverage forests and Nature-based Solutions (NbS) in corporate strategy, covering trends in the Carbon Credit market, the transition to sustainable Supply Chains, and the situation surrounding Japanese companies after the launch of the GX-ETS (Emissions Trading Scheme).
Friday, October 31, 14:00-15:30 "Forests and Nature-based Solutions (NbS) Supporting Corporate Growth: Leveraging Carbon Credits and Supply Chain Strategy"
Please register here. We encourage you to join us for this opportunity!
Article 6 in General
- A series of countries have announced their intention to utilize financing through international carbon markets based on Article 6, coinciding with the announcement of their next 2035 NDCs (Pakistan (link), Bangladesh (link), Sri Lanka (link), Fiji (link), and Argentina).
- Cuba announced its domestic framework for approving domestic carbon projects, its registry, and specialized technical units, which will also align with Article 6 (link).
- India announced the removal of Cookstoves from its list of activities eligible for Article 6 (link).
An increasing number of countries are explicitly looking to use Article 6 as a channel to secure international support for NDC implementation. Particularly for smaller nations, such as Bangladesh, where establishing a robust system on their own might be challenging, JCM initiatives are expected to serve as a foundation for concrete project development and Credit Issuance.
Paris Agreement Article 6.2 (Bilateral Cooperation)
- Taiwan signed an MoU with Paraguay to advance cooperation under Article 6 (link).
- Singapore and Mongolia signed an agreement to implement cooperation through Carbon Credits under Article 6. This is Singapore's 10th bilateral agreement (link).
- Chile, under a bilateral agreement with Switzerland, approved its first project as an Article 6.2 activity. This marks the first such instance in the South American Caribbean region (link).
- Zimbabwe acquired Corresponding Adjustment (CA) applied Credits for a Cookstoves project on the Gold Standard registry. This is the second instance of CORSIA-eligible Credits, following Guyana's Jurisdictional REDD+ Credits (link).
It is clear that Article 6.2 activities, such as project approvals and the acquisition of Credits with Corresponding Adjustments, are transitioning from mere expressions of intent to concrete implementation, leading to actual mobilization of funds. While players in forest and nature-based projects are still limited, given that many countries have set their immediate NDC target year to 2030, this trend is highly likely to involve more countries and progress towards 2030.
Paris Agreement Article 6.4 (Paris Agreement Credit Mechanism: PACM)
Technical documents on Carbon market rules regarding the activity cycle, Methodology, and transfer of CDM activities for the UN's PACM have been issued (link). The Methodology-related documents issued in October are as follows:
Standard for addressing "non-Permanence and Reversal" in mechanism approaches
Application of the requirements of Chapter V.B (Methodologies) to the development and assessment of Article 6.4 mechanism Methodologies
Requirements for Removal activities under the Article 6.4 mechanism
These Methodologies will be further explored in the Methodology section of this newsletter in the future.
Analysis: From Thailand's Case, Is Article 6 Within or Outside the NDC?
As mentioned in the trends summary above, countries actively utilizing Article 6 are showing concrete progress in project development and establishing necessary domestic frameworks for the transfer of Credits (ITMOs) under Article 6. One such active country is Thailand, which is also a JCM partner country. Thailand recently published a list of activities eligible under Article 6 in a domestic policy document (link). However, the scope of these activities and the scope of its NDC did not align, leading to our analysis of how to handle this discrepancy.