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PD Forum urges govts to fast-track Article 6 implementation ahead of COP31 – EnviroNews
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With COP31 approaching, the Project Developer Forum (PD Forum) is calling on governments and international climate institutions to help turn Article 6 of the Paris Agreement into a functioning mechanism for climate investment.
The Forum welcomes the progress Host Parties have made. Article 6.2 cooperation now spans more than 110 bilateral agreements involving 65 countries, and a growing number of Host Parties have authorisation arrangements in place, including through Letters of Authorisation. The Forum commends Host Parties for this progress and encourages them to sustain the momentum.
As this progress turns into implementation, the priority is to protect environmental integrity while giving credible projects a workable route to market, allowing carbon finance to reach projects that deliver measurable climate outcomes and benefits for host-country communities.
The Forum’s six priorities focus on policy certainty, effective implementation, stronger national capacity and a crediting system that remains accessible to credible projects.
The Project Developer Forum COP31 wish list
1. Move Article 6 from rulemaking to implementation
Governments and international institutions should focus on the practical steps needed to make Article 6.2 and Article 6.4 work at scale. This means moving from framework design to functioning approval, authorisation and reporting processes, with clear responsibilities and the capacity to operate them.
With 2030 approaching, implementation cannot wait indefinitely. Developing and financing projects takes time, so countries need to make progress now if Article 6 is to channel investment into mitigation at the scale required.
2. Provide greater policy certainty for projects and investors
Host countries should establish clear, well-consulted Article 6 frameworks that reflect national circumstances and are applied consistently. This includes transparent rules for project approvals, authorisations of internationally transferred mitigation outcomes (ITMOs), fees and corresponding adjustments. They should also clarify the criteria for granting authorisations and how those decisions will be treated over time. Where governments collect carbon fees, the revenue should be channelled toward climate action and mitigation, with transparent reporting.
Predictable processes help developers plan and finance projects, while giving buyers greater confidence in the credits they purchase. Unclear or frequently changing requirements can delay transactions and undermine investment decisions.
3. Strengthen national capacity and reporting systems
Developing countries need sustained technical and institutional support, alongside experienced teams within relevant national institutions, to strengthen greenhouse gas inventories, track progress towards their nationally determined contributions (NDCs), develop and maintain their registries and report ITMOs and corresponding adjustments accurately through biennial transparency reports (BTRs).
This requires reliable reporting systems and experienced teams within the relevant national institutions. Investment in this capacity would help countries meet their Article 6 obligations, maintain credible accounting and participate more effectively in international carbon markets.
Capacity support also needs to keep pace with implementation. Many Host Parties are authorising faster than their inventory systems can keep pace. The Forum therefore encourages practical reporting approaches that let authorisations and the resulting corresponding adjustments be reflected in national reporting and NDC progress tracking, backed by the capacity support needed to strengthen inventories and registry development.
4. Improve interoperability between national and international systems
National approval processes and registries need to work effectively with international infrastructure and market mechanisms, including the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
COP31 should encourage practical progress towards systems that can record, track and report transfers consistently. Better connections between national and international registries would reduce duplication, give developers and buyers greater certainty on the status of credits, make reporting more straightforward and help countries and market participants track transactions as the market grows. Timely development of the UNFCCC registry will be an important part of this.
5. Keep PACM methodologies evidence-based and workable
The Paris Agreement Crediting Mechanism (PACM) needs methodologies grounded in robust scientific evidence and informed by the realities of project implementation. The Forum calls for greater involvement from host countries and developers in developing and revising these methodologies, drawing on national circumstances and practical project-level evidence.The Supervisory Body should also assess how requirements interact and what their cumulative effect means for project viability and participation. Maintaining environmental integrity is essential, but rules must be proportionate to the evidence and workable for credible projects across different countries and sectors.
6. Strengthen the investment case for high-integrity mitigation
Article 6 needs to provide a credible route for private finance to reach high-integrity mitigation projects, particularly in countries where other sources of funding are limited. Clear authorisation processes, reliable accounting and workable methodologies all help reduce uncertainty for investors and buyers.
The Forum also encourages buyers and market participants to look beyond price alone when assessing internationally transferred mitigation outcomes (ITMOs). Pricing should reflect the integrity of the mitigation, the sustainable development benefits it delivers and the carbon-price context of the acquiring country. Recognising these differences can help direct investment towards projects that deliver strong climate outcomes and wider benefits.
Developer input matters
Project developers bring practical experience of working with host-country authorities, local partners, standards bodies and buyers. The PD Forum encourages governments and international institutions to draw on that experience as Article 6 frameworks and methodologies evolve, helping ensure that rules protect environmental integrity while remaining workable in practice.
The Forum and its members remain ready to work with governments and other stakeholders to help Article 6 mobilise climate finance and deliver high-integrity mitigation.
