Paris Agreement Article 6 Regular Update / Article 6.2 Comparison with South Korea and Singapore
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
Deloitte Tohmatsu Sustainacraft, Inc. This article is Section B (Policy Trends Edition) of our VCM Updates (Voluntary Carbon Market Updates).
Introduction
In this month’s highlight (Analysis Article), we provide a comparative analysis of the Article 6.2 approaches of Singapore and South Korea versus the JCM. As the JCM and the approaches of these two countries overlap in several Southeast Asian nations, this article will explain in detail which countries will become the focal points.
We will cover the following topics:
- Policy Trends
- Trends in Major International Regulations
- Paris Agreement Article 6.2 (Bilateral Cooperation)
- Paris Agreement Article 6.4 (Paris Agreement Crediting Mechanism)
- National Carbon-Related Policies
- Non-State Actor Initiatives
- UNFCCC Registry
- Trends in Major International Regulations
- Analysis Article
- Comparison of Article 6.2: JCM vs. South Korea and Singapore
Keywords: Article 6, Bilateral Cooperation, PACM, Singapore, South Korea
Announcement: SBTi V2.0 Webinar [Reminder]
In June 2026, the SBTi announced V2.0, the revised version of the "Corporate Net Zero Standard." In response, we will hold a webinar as follows.
Webinar Overview (Link)
Title: Utilizing Nature-based Solutions (NbS) Credits under the New SBTi Standard (v2.0) and OER: Key Points for Corporations Today
Date/Time: Thursday, September 17, 2026, 14:00-15:30
Location: Online (Zoom Webinar)
Participation Fee: Free
If you are interested, please register via this link!
1. Trends in Major International Regulations
Paris Agreement Article 6.2 Related
- Proposal for ITMO Purchase Restrictions and Environmental Integrity Discussions
- A new study has proposed that to maintain environmental integrity, the purchase of ITMOs from seller countries with insufficient NDC (Nationally Determined Contribution) ambition should be prohibited (Source).
- This has sparked debate as a measure to eliminate the risk of "hot air," where mitigation outcomes are overvalued, and to ensure the overall ambition of the Paris Agreement is not undermined.
Paris Agreement Article 6.4 Related
Regarding Paris Agreement Article 6.4 (PACM), the institutional design by the Supervisory Body is nearing completion, and the transition from old systems and the formulation of host country rules are accelerating.
This month, these preparations led to concrete registration and approval actions.
- Transition of Projects from CDM to PACM
- More than 30 former Clean Development Mechanism (CDM) projects have been officially registered for transition to the Paris Agreement Crediting Mechanism (PACM) under Article 6.4 (Source). This marks the beginning of integrating Kyoto Protocol-era assets into the Paris Agreement framework.
- Publication of Host Country Rules by the UAE
- The United Arab Emirates (UAE) has published its requirements and approval policies as a host country for Article 6.4 projects (Source 1, Source 2). Activities aligned with national strategies, such as renewable energy and waste management, will be eligible. Notably, the UAE and Japan signed a Memorandum of Cooperation (MoC) regarding the JCM in April 2023.
National Carbon-Related Policies
In August 2026, various countries promoted diverse policies toward greenhouse gas emission reductions; however, international friction surrounding EU policies and the reorganization of domestic systems were particularly prominent.
- Escalation of Trade Friction over CBAM
- The U.S. Ambassador to the EU called the EU's CBAM a "Tariff by Another Name," severely criticizing the EU's protectionist measures (Source). These remarks suggest that European climate policy could impact international trade agreements, potentially causing tension in future U.S.-EU relations.
- Fundamental Reform and Criticism of the EU ETS (Emissions Trading System)
- The European Commission released a Q&A regarding the EU ETS reform proposal, clarifying the policy to mandate the formulation of decarbonization investment plans as a condition for receiving free emission allowances (Source).
- However, environmental NGOs such as the WWF have criticized this reform proposal, arguing that the reduction of the linear reduction factor is insufficient and constitutes a "free lunch" that weakens incentives for emission reductions (Source).
- Furthermore, discussions regarding the integration of biochar as a carbon removal within the EU ETS are gaining momentum, though there are calls for rigorous cost assessments and MRV (Measurement, Reporting, and Verification) (Source).
- Policy Trends in Major Countries
Non-State Actor Initiatives
- New VCMI Initiative to Support Adaptation in Vulnerable Countries
- The VCMI (Voluntary Carbon Markets Integrity Initiative) announced a new initiative to help climate-vulnerable countries use carbon markets to finance their Adaptation Plans (Source).
2. UNFCCC Updates
Between last month and this month, a total of two reports were submitted to the UNFCCC Registry. Both were Biennial Transparency Reports (BTRs) (Bosnia and Herzegovina, North Macedonia). There were no new submissions from JCM partner countries. In this article, we provide a summary of North Macedonia’s BTR.
BTR (Biennial Transparency Report)
North Macedonia (MKD) - First Biennial Transparency Report (BTR1)
North Macedonia has submitted its BTR1, which is required by the end of 2024.
1. NDC Targets and Progress
- Target: The country has set highly ambitious targets to reduce total emissions by 51% by 2030 (compared to 1990 levels, excluding FOLU) and, conditionally, to reduce net emissions by 82% (including FOLU).
- Progress: As of 2022, total emissions decreased by 12.66% compared to 1990 levels. Further acceleration is required to achieve the targets.
2. Importance of the Forestry and LULUCF Sectors
- The forestry sector is a critical removal/sequestration source for the country (2022 performance: -3,085 Gg CO2-eq), but it faces the risk of becoming an "emission source" due to forest fires.
- Main Policies: These include integrated forest fire management, 5,000 hectares of afforestation, and the utilization of biochar.
3. Intent to Utilize Paris Agreement Article 6
- The report mentions the possibility of "transferring mitigation outcomes through cooperative approaches" not for the achievement of its own national targets, but indicating an intent to act as a creator of ITMOs (Internationally Transferred Mitigation Outcomes).
3. Analysis Article: Comparison of Article 6.2 between JCM and South Korea/Singapore
Introduction
Alongside Japan's JCM, Singapore and South Korea are becoming increasingly active as countries advancing bilateral cooperation under Article 6.2 of the Paris Agreement. Even within the same Article 6.2 framework, each is establishing a foothold in host countries through unique approaches. Furthermore, depending on the target country, there are overlaps with the JCM. As we consider JCM credit procurement, the trends in Singapore and South Korea are already of significant interest.
Therefore, in this article, we will conduct a comparative review of the Article 6.2 institutional approaches of Japan, South Korea, and Singapore and organize the movements of each country toward procuring nature-based ITMOs (Internationally Transferred Mitigation Outcomes). To preview the conclusion: the Article 6.2 approaches of the other two countries overlap with the JCM in the Philippines, Laos, Vietnam, Mongolia, and Indonesia. Several key considerations for future JCM credit procurement have emerged.
The following sections will cover: (1) Institutional comparison of the three countries; (2) Actions by each country to acquire nature-based ITMOs; (3) Countries where competition or coexistence with the JCM is possible; and (4) Summary.