Moving towards next generation carbon markets – Observations from Article 6 pilots

In this study, we provide the first comprehensive overview of about a dozen ongoing Article 6 pilots and analyze the emerging trends and early experience with Article 6 implementation. We look particularly at how the pilots are responding to the new challenges posed by the Paris Agreement. We see that today’s pilots are already addressing these challenges in their engagement with partners while coming up with various different approaches.

Over the latest negotiations rounds, Parties have made significant progress in defining new carbon market rules. Yet, while at COP24 in Katowice Parties were able to agree on the Paris Rulebook, the finalization of the Article 6 rules is still pending and has been postponed to COP25 in Chile. Carbon markets therefore remain in limbo.

However, this period of uncertainty has given rise to a number of initiatives that aim to test or prepare for the new rules. As negotiators continue to grapple with the technical intricacies of the rules, Article 6 pilot initiatives can offer vital insights.