Paris Agreement Article 6.2/6.4 Regular Update

This article is an automatically translated version of the original Japanese article. Please refer to the Japanese version for the most accurate information.

This article outlines key developments in carbon-related policies announced from December 2025 to January 2026, covering the following areas:

• Policy Developments
  • Paris Agreement Article 6.2 (Bilateral Cooperation)
  • Paris Agreement Article 6.4 (Paris Agreement Credit Mechanism)
  • National Carbon-Related Policies
  • Non-State Actor Initiatives
• UNFCCC Registry Updates

Keywords: Article 6, Bilateral Cooperation, PACM, JCM, Nature-based, COP30

1. Introduction

Policy Developments: From December 2025 to January 2026, the implementation of Paris Agreement Article 6 significantly advanced across institutional, policy, and practical fronts. Through the expansion of bilateral and multilateral agreements involving countries like Brazil and Singapore, the refinement of Article 6.4 rules, the full operationalization of CBAM in the EU, and the formation of new partnerships engaging non-state actors, the international carbon market is clearly entering a transitional phase. Below, these developments are organized from four perspectives: Article 6.2, Article 6.4, National Policies, and Non-State Actor Initiatives.

UNFCCC Registry Updates: From October 2025 to January 2026, the UNFCCC registry saw numerous important submissions. In particular, there was a surge in submissions of the first Biennial Transparency Reports (BTRs) under the Paris Agreement's Enhanced Transparency Framework (ETF), and the submission of next-generation NDC 3.0 (e.g., 2035 targets) has fully commenced. This time, we will provide an overview of the NDCs, BTRs, and Article 6.2 initial reports submitted by specific JCM partner countries, including Indonesia, Thailand, Saudi Arabia, Mongolia, Bangladesh, Laos, and Sri Lanka.

2. Policy Developments

Article 6.2

In the developments concerning Article 6.2 from December 2025 to January 2026, following the COP outcomes, new bilateral agreements emerged, along with trilateral agreements. Singapore continued to play a central role through the conclusion of new agreements and the publication of approved project lists. Meanwhile, momentum accelerated in Africa, with new agreements and institutional development progressing in Zambia and Zimbabwe, indicating progress towards international cooperation. Japan, through the JCM, continued to strengthen the implementation of Article 6.2 by combining policy dialogues with concrete project formation.

The following new agreements were announced:

• Brazil signed a trilateral Memorandum of Understanding (MoU) with Singapore and Switzerland, valid for five years. Actual implementation will occur at the bilateral level, with the aim of sharing best practices and advancing collaborative initiatives leveraging Article 6.2. [Source].
• Zambia and Switzerland formally activated a bilateral implementation agreement in January this year, which was agreed in principle at COP30 held in Brazil. This marks Zambia's third bilateral agreement in the past two years. [Source].

Developments regarding future bilateral agreements were also reported:

• Zimbabwe initiated negotiations for bilateral agreements on Carbon Credit trading under Article 6.2 with several countries, including Singapore, Switzerland, and Malaysia. [Source].

Progress was observed regarding project list approval:

• Singapore published a list of "pre-approved" eligible projects and Methodologies under its bilateral implementation agreement with Vietnam. The eligible registries are Gold Standard (GS), Verra, American Carbon Registry (ACR), Global Carbon Council (GCC), and ART-Trees. Regarding projects, while the HFLD (High Forest, Low Deforestation) approach for REDD+ is excluded, many Nature-based Solutions projects are eligible, such as Improved Forest Management (IFM) (VM0042) and tidal wetland and seagrass restoration (VM0033). [Source].

Japan's bilateral partnerships advanced:

• Japan's Ministry of the Environment co-hosted a forum in Thailand aimed at implementing Article 6.2 and fostering project creation under the JCM. This forum, attended by public and private sector stakeholders, discussed accelerating project formation. This initiative follows the first Issuance of JCM Credits as a Paris Agreement mechanism in late 2025. [Source]
• Brazil and Japan signed a Letter of Intent (LOI) in December 2025, indicating their intention to strengthen cooperation on the restoration of degraded pastures and agricultural lands in Brazil. [Source]
• The 5th Joint Committee meeting of the JCM between Maldives and Japan was held in Malé, the capital of Maldives, and online, with the aim of strengthening cooperation on Carbon Credit projects. [Source].

Article 6.4

The Clean Development Mechanism (CDM) is scheduled to conclude at the end of 2026, and efforts are underway to strengthen the Article 6.4 mechanism.

The United Nations' expert panel, the Methodology Expert Panel (MEP), is developing new Reversal risk assessment tools for use in the Permanence framework of Article 6.4 Credits, while also working on refining CDM Methodologies. [Source].

The MEP is also conducting a call for input from stakeholders on new Methodologies, with results expected to be published in the first half of 2026. Key discussion points in this call for input include the treatment of contributions to Buffer Pools and whether Corresponding Adjustments (CAs) should be required for them.  [Source, Source]. This consultation is taking place at a critical juncture. Concerns are growing among researchers, in particular, that current Article 6 rules are insufficient, especially regarding Permanence. It is indicated that loopholes that could undermine environmental integrity may arise if lessons from past mechanisms are not adequately incorporated. [Source].

National Carbon-Related Policies

From December 2025 to January 2026, several mechanisms, including CBAM and climate change bills, were officially launched or approved. Additionally, existing mechanisms underwent revisions aimed at expanding participation in carbon markets and enhancing transparency.

Developments concerning the Carbon Border Adjustment Mechanism (CBAM) were particularly observed in January:

• The EU's CBAM fully entered into force in January 2026. This requires importers of high-emission goods not only to report emissions but also to declare them and purchase CBAM certificates. [Source]. The European Commission published a set of implementing regulations and detailed rules concerning CBAM in December 2025. [Source].
• U.S. Democratic lawmakers reintroduced the "Clean Competition Act," which aims to impose carbon tariffs on carbon-intensive imports to protect domestic manufacturers and integrate climate goals into trade policy. This move comes against the backdrop of the EU's preparations for CBAM implementation.  [Source].

In Asia and Latin America, there were developments concerning Emissions Trading Systems (ETSs):

• South Korea amended its Emissions Trading Act to discontinue the consideration of Carbon Credit prices in the calculation of free allowance allocations, citing price volatility.  [Source].
• Brazil established a permanent Technical Advisory Committee (CTCP) with the aim of providing recommendations and advice for improving its Emissions Trading System (SBCE). [Source].
• The Thai Cabinet approved a climate change bill, which includes the creation of a Carbon Credit trading system. The bill incorporates the introduction of a mandatory ETS, as well as CBAM and carbon taxes on certain products. [Source].
• Japan's Ministry of Economy, Trade and Industry announced its policy to fully launch a new domestic Emissions Trading System (GX-ETS) in April 2026. Accordingly, trading rules and registration guidelines are being finalized, and preparations for target companies are underway. (Source).

There were also other policy developments in various countries:

• Niger officially outlined its framework for participation in the new international carbon market under Article 6.4, positioning the UN's Carbon Credit mechanism as a key financing tool for sustainable development.  [Source, Source].
• Australia's Carbon Market Integrity Committee published a draft of its Improved Native Forest Management (INFM) Methodology, with a formal call for public comment expected soon. [Source].

Non-State Actor Initiatives

New strategic partnerships involving private companies, international organizations, and registries emerged, with initiatives aimed at accelerating decarbonization and mobilizing high-quality Carbon Credits and appropriate climate finance.

Registries and certification bodies are collaborating with other private companies:

• Mitsui O.S.K. Lines (MOL) has partnered with Isometric to ensure scientific rigor and transparency in the Issuance of Carbon Dioxide Removal (CDR) Credits towards its Net Zero goals. [Source].
• Dubai-based Carbon Credit certification body, Global Carbon Council (GCC), partnered with the intergovernmental organization, Asian Forest Cooperation Organization (AFoCO). The partnership aims to leverage USD 216 billion in climate finance to scale "Nature-based Solutions projects" and reliable carbon projects across Asia.  [Source].

Key government-backed partnerships advanced:

• The United Nations Development Programme (UNDP), in collaboration with the Swiss Federal Office for the Environment, launched a call for expressions of interest from the private sector regarding the supply of Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2. This initiative aims to promote Emission Reduction projects with high environmental integrity in signatory countries, including Zimbabwe, and to expand private sector participation and Credit supply. [Source].
• As part of the restructuring of the Non-State Actor Zone for Climate Action (NAZCA), a new collaboration strategy called the NAZCA Network was introduced. This strategy aims to directly connect partners with information, analysis, and evaluations of climate actions. Through workshops, outreach, and collaborations, it seeks to strengthen regional and private sector initiatives and foster a community of mutual learning. [Source].

3. UNFCCC Registry Updates

Since October last year, numerous JCM partner countries, including Indonesia, Thailand, Saudi Arabia, Mongolia, Bangladesh, Laos, and Sri Lanka, have submitted ambitious NDCs, detailed BTRs, and Article 6.2 initial reports. These submissions clearly reflect the expectations of countries regarding the Joint Crediting Mechanism (JCM) and the international carbon market within their Emission Reduction plans. In particular, many countries have set conditional targets (reductions contingent on international support), which expands opportunities for JCM project development.