Paris Agreement Article 6…

…allows companies and countries to cooperate to increase climate ambition. Article 6 may provide the blueprint for a global carbon market - but it can also fund protection and restoration of forests through the Article 6.8 non-market mechanism.

 Why 6.8 Now?

Negotiations to finalize the rules governing international carbon markets collapsed amidst 

acrimonious finger-pointing at COP28 in December 2023.  Meanwhile, Article 6.8 was successfully

launched and provides for holistic in the land sector.  Article 6.8 is better for climate finance, mitigation

ambition, and ecological integrity. Here’s why:

  • Articles 6 deals with ‘international cooperation for mitigation action’. Article 6.8 has evolved to emphasize land sector actions -- from community to multi-country levels. The 6.8 non-market mechanism is superior for actions in the land sector due to its focus on joint-mitigation adaptation (JMA); the full contribution to the host country’s nationally-determined contribution (NDC); and its grounding in the rights-based language of the Paris Agreement Preamble.

    The Article 6.8 implementation tools specified in Article 6 outcomes from Glasgow COP26 in 2021 were finalized and launched at COP28 in December 2023. A web-based platform will help countries keep track of NDC progress and should enable countries, subnational governments and other approved entities to post project ideas. Beyond the web-based platform are a variety of matching mechanisms for developing and scaling gender-just and rights-based approaches.

    The vision that has guided negotiators and contributors to the development of the non-market approach integrates people, nature, and climate. Article 6.8 is the bright spot for international cooperation going into COP28, because it is ready to implement.

  • While the parts of Article 6 that are meant to create carbon offsets and credits focused solely on mitigation, from the beginning Article 6.8 has been understood as the setting where joint mitigation- adaptation (JMA) approaches can be developed. Six years ago, the UN body (SBSTA) overseeing these negotiations talked about the use of non-market approaches “such as joint mitigation and adaptation approaches for the integral and sustainable management of forests.”

    Joint mitigation-adaptation approaches should be both people-centered and focused on improving ecosystem integrity. Both are necessary components of resilience in the face of climate change.

    Read about Ecological Integrity

  • A number of CLARA members have worked on alignment between goals of the UNFCCC and the Convention on Biological Diversity, and specifically, the pursuit of synergies between climate mitigation and biodiversity conservation. A discussion of how best to operationalize those connections would be a welcome addition to workshops at SB60 and COP29 in 2024.

    Achieving the goals and targets of the CBD and UNFCCC will not be possible unless carbondense and species-rich ecosystems are protected and restored. The principle of ecosystem integrity must now be fully implemented in the monitoring frameworks and accounting rules of both Conventions.

    Fortunately, the UN System of Enviromental-Economic Accounting (UN-SEEA) shows a way to implement these ecosystem-based approaches. Approved by the United Nations in 2021, this approach helps to make clear that high-integrity ecosystems provide more stable carbon sinks (for mitigation), better conservation outcomes, and lowered risk of the loss of ecosystem services (improved resilience and adaptation responses).

    Read about Ecological Integrity

  • Article 6.8 provides better mitigation outcomes because there are no mitigation transfers, and no use of offset mechanisms to ‘excuse’ continued fossil fuel use elsewhere. Negotiators in Article 6.4 are only considering a requirement to retire 2% of credits (and only 5% for ‘Share of Proceeds’ from the transfers) – meaning that more than 90% of the proposed mitigation benefit is available for trading and offsetting purposes!

    Contrast this with Article 6.8, where 100% of the mitigation effort is recorded on the NDC of the host country. Article 6.8 ensures an Overall Mitigation in Global Emissions (OMGE) – one of the key principles in which Article 6 is grounded.

  • Well managed Protected Areas, Indigenous territories including Indigenous Protected Areas that support traditional management, and landscape-level restoration are the best examples of conservation. These approaches deliver on mitigation, adaptation, biodiversity protection, ecosystem integrity and resilience. Article 6.8 provides the opportunity to deliver these robust climate and biodiversity outcomes and increase their prominence in the new round of NDCs.

    CLARA has detailed the kinds of additional resources that can be mobilized from levies and taxes that seek to reduce fossil fuel use and dampen speculation in financial markets. This would deliver a ‘double win’ for land-based action.

    CLARA also points to the variety of innovative finance approaches that could be supported through the Article 6.8 non-market mechanism. The web-based platform should enable direct access for local communities and Indigenous Peoples through the funding mechanisms they have developed.

    Examples of innovative finance that advance 6.8’s focus on ecosystem integrity and community-led solutions: the Pawanka Fund, CLARIFI, the ForestPeoplesClimate platform, the Amazon Fund, and The Tenure Facility. At COP27, groups united by the Shandia Vision presented examples of successful direct funding mechanisms; the future workshops on Article 6.8 should build on this example. And to support direct access for community groups and national (and regional) indigenous federations, the web-based platform should provide clear simplified guidance and templates for adding proposals.

  • The Glasgow Leaders’ Declaration from COP26 is significant for the protection, conservation, and restoration of forests. The pledge included a target figure for dedicated finance: USD 12 billion, along with a commitment of USD 7.2 billion from philanthropic and other private sources.

    Signers of the Glasgow pledge affirmed their commitment to “sustainable land use, and to the conservation, protection, sustainable management and restoration of forests, and other terrestrial ecosystems.” They noted the importance of “support for smallholders, Indigenous Peoples, and local communities, who depend on forests for their livelihoods and have a key role in their stewardship.” The language in the pledge is consistent with the goals of the Article 6.8 non-market mechanism!

    The Glasgow Declaration was made outside the framework of UNFCCC negotiations; but Article 6.8 provides an opportunity now to fulfill those pledges in line with the requirements of the Paris Agreement.

CLARA Comments

CLARA has worked hard to ensure that non-market approaches, not just carbon markets, are part of the Article 6 mechanisms.

In comments to the UNFCCC, CLARA argues for rights-based approaches, with community needs at the center of the action.

We also propose a number of innovative funding mechanisms.

Read full comments:

Match-making Community-led Climate Action: A Discussion Paper Greenpeace and CLARA

This new paper calls on countries to move past their obsession with carbon offset markets, and embrace the diverse range of non-market-based approaches.