One of the most anticipated items on COP27‘s agenda this year is Article 6, or nine paragraphs describing how – and under what circumstances – the voluntary carbon market can be used for emissions trading. At COP26 in Glasgow, a set of rules governing carbon markets was agreed on after years of negotiations. This year is about setting out the mechanisms to implement those rules.
Khaled Diab, communications director at the Brussels-based NGO Carbon Market Watch, lays out the main sticking points that are delaying progress in negotiations on Article 6 at COP27.
For Article 6.2, some countries are asking for a non-standardised reporting mechanism for emissions trading, a move which, if implemented, would “open a door to a lack of transparency and [risk] that governments will not be held fully to account”, says Diab.
Article 6.4 is controversial for its “rushed definition of what carbon removal is”, he adds. Ambiguous definitions risk including projects that do not legitimately and permanently remove carbon from the atmosphere. Diab cites forestry projects as a particular challenge. “What happens if there are reversals? Who is liable?” For example, carbon credits were sold for Californian forests that subsequently burned down during the summer heat waves.
Climate action beyond carbon markets at COP27:
Reporter Nour Ghantous and senior writer Dave Keating are reporting from COP27 in Sharm El Sheikh, Egypt, on behalf of Energy Monitor and our parent company, GlobalData. They are providing the data-led analysis you have come to expect from Energy Monitor but also something new: video interviews with business leaders, policymakers and campaigners. We encourage you to return often to our Energy Monitor home page for updates from the conference. You can also sign up for our free biweekly newsletter here.
Other recent COP27 coverage includes:
COP27: The underdogs did most of the work in week one. Now what?, by Nour Ghantous (16 November)
COP 27: Warsaw’s mayor has come with a very different message than the Polish government, by Dave Keating (16 November)
The interwoven fortunes of carbon markets and indigenous communities, by Oliver Gordon (16 November)
COP27: Deep geothermal “superhot rock energy” could be key to climate action, by Dave Keating (16 November)
One year on, is coal being consigned to history?, by Dave Keating (15 November)
COP27: Cities are essential in the climate fight, says former Lord Mayor of Dublin, by Dave Keating (14 November)
COP27: “Green hydrogen is one of the bright spots of this COP” – Jonas Moberg, CEO of GH2, by Nour Ghantous (14 November)
COP27: Ukraine energy company DTEK maintains net-zero goal, by Nour Ghantous (14 November)
Opinion: COP27 comes after a year of unfulfilled COP26 promises, by Nick Ferris (11 November)
COP27: Data science can strengthen climate action, by Nour Ghantous (11 November)
COP27: Alpine Group proffers recycled textiles to combat climate, by Nour Ghantous (10 November)
Why the financial odds are stacked against developing countries, by Isabeau van Halm and Polly Bindman (9 November)
COP27: International Labour Organization wants to see a just transition “actually implemented”, by Nour Ghantous (9 November)
COP27 take note: Climate tech funding has soared in 2022, by Eric Johansson (9 November)
COP27: How countries compare on carbon emissions and pledges, by Nick Ferris (7 November)
COP27: Mattie Yeta, CGI’s chief sustainability officer, on the first-ever ‘metaverse COP’, by Nour Ghantous (7 November)
Which countries are already at net zero?, by Nick Ferris (25 October)
COP27: Manage your expectations, by Nour Ghantous (21 September)