Article 6.4 project methodologies to be ready from 2024: Supervisory Body chair

Carbon project methodologies under Article 6.4 of the Paris Agreement will be ready starting from 2024, Olga Gassan-zade, the Chair of the Article 6.4 Supervisory Body, told S&P Global Commodities Insights on the sidelines of the Carbon Forward 2023 conference in London on Oct. 11.

Carbon projects methodologies are frameworks that define how carbon credits are generated through a carbon project. The Supervisory Body -- a United Nations body -- has been tasked to operationalize the principles of Article 6 of the Paris Agreement signed in 2021. Under Article 6 of the Paris deal, signatory nations can reach their climate goals, the so called Nationally Determined Contributions, by exchanging carbon credits issued by projects that comply either with the rules of the Article 6.2 mechanism -- a bilateral scheme that is already in operation -- or Article 6.4 mechanism, a centralized scheme seen as the successor of the Clean Development Mechanism and yet to be implemented.

As part of this mandate, the Supervisory Body led by Gassan-zade has been working to define the guidelines, rules and principles to be followed when setting up a new project methodology under the Article 6.4 scheme.

After completion of this work, in 2024, the Supervisory Body will start revising new or existing methodologies.

"Project methodologies will be proposed to the Supervisory Body and then they will go through a process to be approved or rejected based on the principles set out by the Supervisory Body [in 2022-2023]," said Gassan-zade.

Anyone will be able to propose methodologies to the Supervisory Body, including governments and certifiers from the voluntary carbon market like Verra or Gold Standard.

The Supervisory Body itself will be able to propose methodologies. "This is because the Supervisory Body has received a mandate to review existing methodologies," said Gassan-zade.

Article 6.4 approved methodologies will appear gradually over time as this process unfolds, starting from 2024.

UN-backed Article 6.4 methodologies are set to shape the methodologies used in the voluntary carbon market as well, according to many market participants, as integrity concerns and greenwashing accusations have left the VCM in a limbo. UN-backed Article 6.4 rules could provide the compass the VCM -- an unregulated market -- needs to regain trust from investors and buyers.