By Mathew Carr

June 16, 2023 — LONDON — Documents published Thursday and Friday by the UNFCCC secretariat reveal the detailed work undertaken by UN envoys on global carbon markets the past two weeks at Bonn climate talks.

Envoys from rich countries are concerned what the status of existing voluntary carbon market programs will be under the new system being created by the Paris Climate deal …. and whether they will be able to achieve a UN stamp under it, according to one envoy I spoke to at the Bonn talks late Wednesday.

Agreed electronic format (AEF)

The “agreed electronic format” of deals sounds mundane, but it will contribute to “the overall coherence and transparency of and confidence in the Article 6, paragraph 2, system and is relevant to both the reporting and infrastructure requirements of the Article 6.2 guidance.” (see second document below)

Key section of first document:

The SBSTA also requested the secretariat to organize a hybrid workshop to be held in conjunction with the workshop being organized under the SBSTA agenda item entitled “Rules, modalities and procedures for the mechanism established by Article 6, paragraph 4, of the Paris Agreement and referred to in decision 3/CMA.3” before SBSTA 59 [Nov. Dec. 2023] to consider the technical paper on the elements referred to in paragraph 6(a–d) above.”

How carbon trading deals are authorized, corresponding adjustments remain key areas of work that seem not to be finalized. (See second document).

The two annexes of second doc seem key (I cut and paste here below in case it helps but it’s probably best to read the source docs at your desk)

Annex I

Provisions related to the registries agreed as part of the guidance and matters related to cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement and matters and rules, modalities and procedures for the mechanism established by Article 6, paragraph 4, of the Paris Agreement 1.

This annex contains adopted provisions and CMA work-programme elements on matters related to registries established by the CMA in the context of Article 6, paragraph 2, of the Paris Agreement and Article 6, paragraph 4, of the Paris Agreement Table 1 Adopted Provisions Decision reference Provision Decision 2/CMA.3, annex, paragraph 29 Each participating Party shall have, or have access to, a registry for the purpose of tracking and shall ensure that such registry records, including through unique identifiers, as applicable, authorization, first transfer, transfer, acquisition, use towards NDCs, authorization for use towards other international mitigation purposes, and voluntary cancellation (including for overall mitigation in global emissions, if applicable), and shall have accounts as necessary. Decision 2/CMA.3, annex, paragraph 30 The secretariat shall implement an international registry for participating Parties that do not have or do not have access to a registry. The international registry shall be able to perform the functions set out in paragraph 29 above. Any Party may request an account in the international registry. Decision 2/CMA.3, annex, paragraph 31 The international registry shall be part of the centralized accounting and reporting platform referred to in chapter VI.C (Centralized accounting and reporting platform). Decision 3/CMA.3, annex, paragraph 63 The mechanism registry shall contain at least a pending account, holding account, retirement account, cancellation account, account for cancellation towards overall mitigation in global emissions and a share of proceeds for adaptation account, as well as a holding account for each Party and each public or private entity authorized per Article 6, paragraph 4(b), by a Party that requests an account where that entity meets the requisite identification requirements developed by the Supervisory Body. The mechanism registry shall be connected to the international registry referred to in decision 2/CMA.3. Decision 6/CMA.4, annex I, paragraph 9 Where participating Party registries are interoperable, the Parties participating in a cooperative approach shall, for the purpose of transferring ITMOs, implement appropriate standards and Informal note by the co-facilitators SBSTA 58 agenda item 13 29 Decision reference Provision procedures to mitigate risks to the consistency of data, including through communication of data about the transfer and reconciliation procedures within and between registries. Decision 6/CMA.4, annex I, paragraph 10 Interoperability of registries should be implemented in such a way that neither Party to an inter-registry transfer could later repudiate the existence, type, time or content of the transfer. Decision 6/CMA.4, annex I, paragraph 23 Pursuant to decision 3/CMA.3, annex, paragraph 63, the mechanism registry is connected to the international registry. The connection of the mechanism registry to the international registry shall, at a minimum, enable the functions referred to in paragraphs 9– 10 above and be implemented in accordance with future decisions of the CMA. Decision 6/CMA.4, annex I, paragraph 24 A participating Party may connect its registry to the international registry. Such connections shall apply the interoperability arrangements applicable to all registries as described in chapter I.B above and other relevant future decisions of the CMA. Decision 7/CMA.4, annex I, paragraph 49 Pursuant to paragraph 63 of the RMPs, the mechanism registry shall be connected to the international registry. The connection shall allow for automated pulling and viewing of data and information on holdings and the action history of authorized A6.4ERs for use by participating Parties that have an account in the international registry. Informal note by the co-facilitators SBSTA 58 agenda item 13 30 Table 2 CMA work programme Decision reference Provision Decision 6/CMA.4, paragraph 17(g) Also requests the Subsidiary Body for Scientific and Technological Advice, on the basis of the guidance in the annex to decision 2/CMA.3 and the further guidance in the annexes to this decision, to develop recommendations, taking into account Party submissions referred to in paragraph 15 above and giving consideration to implementation priorities, for consideration and adoption by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement at its fifth session, on: (g) The need for additional functionalities and procedures for the international registry to allow for transfer of Article 6, paragraph 4, emission reductions to the international registry and to provide services for cooperative approaches if voluntarily requested by Parties participating in a cooperative approach, including, inter alia, additional technical functionalities and administrative arrangements, for authorizing account access, and further guidance on procedures for reporting and review for the cooperative approaches of the participating Parties requesting such services, which may be required in addition to the relevant guidance in decision 2/CMA.3 and annex I to this decision; Decision 6/CMA.4, paragraph 17 (h) (h) The accounts of the international registry and the role of the international registry administrator, in accordance with the guidance contained in annex I; Decision 6/CMA.4, paragraph 17 (i) (i) The submission of information by Parties using the international registry as the basis for tracking internationally transferred mitigation outcomes; Decision 7/CMA.4, paragraph 9 (b) Also requests the Subsidiary Body for Scientific and Technological Advice to continue its consideration of, and to develop, on the basis of the rules, modalities and procedures for the mechanism and elaboration thereon, recommendations for consideration and adoption by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement at its fifth session (November–December 2023) on: (b) Connection of the mechanism registry to the international registry as per paragraph 63 of the rules, modalities and procedures for the mechanism, as well as to other registries referred to in decision 2/CMA.3, annex, paragraph 29, if applicable, including the nature and extent of interoperable features; Informal note by the co-facilitators SBSTA 58 agenda item 13 31

Annex II

Provisions related to authorization included in the guidance and matters related to cooperative approaches referred to in Article 6, paragraph 2, of the Paris Agreement 1.

This annex contains adopted provisions and CMA work-programme elements on matters related to authorization on matters related to Article 6, paragraph 2, of the Paris Agreement Table 1 Adopted Provisions Decision reference Provision Decision 2/CMA.3, annex, paragraph 2(b) A “first transfer” is: (b) For a mitigation outcome authorized by a participating Party for use for other international mitigation purposes, (1) the authorization, (2) the issuance or (3) the use or cancellation of the mitigation outcome, as specified by the participating Party. Decision 2/CMA.3, annex, paragraph 3 Each Party participating in a cooperative approach that involves the use of ITMOs (hereinafter referred as a participating Party) shall ensure that its participation in the cooperative approach and the authorization, transfer and use of ITMOs is consistent with this guidance and relevant decisions of the CMA and that it applies this guidance to all corresponding adjustments and cooperative approaches in which it participates. Decision 2/CMA.3, annex, paragraph 18(g) Each participating Party shall submit an Article 6, paragraph 2, initial report (hereinafter referred to as an initial report) no later than authorization of ITMOs from a cooperative approach or where practical (in the view of the participating Party) in conjunction with the next biennial transparency report due pursuant to decision 18/CMA.1 for the period of NDC implementation. The initial report shall contain comprehensive information to: (g) Provide, for each cooperative approach, a copy of the authorization by the participating Party, a description of the approach, its duration, the expected mitigation for each year of its duration, and the participating Parties involved and authorized entities Decision 2/CMA.3, annex, paragraph 20(a) Each participating Party shall, on an annual basis by no later than 15 April of the following year and in an agreed electronic format, submit for recording in the Article 6 database referred to in chapter VI.B below (Article 6 database): (a) Annual information on authorization of ITMOs for use towards achievement of NDCs, authorization of ITMOs for use towards other international mitigation purposes, first transfer, transfer, acquisition, holdings, cancellation, voluntary cancellation, voluntary cancellation of mitigation outcomes or ITMOs towards overall mitigation in global emissions, and use towards NDCs Informal note by the co-facilitators SBSTA 58 agenda item 13 32 Decision reference Provision Decision 2/CMA.3, annex, paragraph 21(c) Each participating Party shall include, as an annex to its biennial transparency reports that are submitted in accordance with paragraph 10(b) of the annex to decision 18/CMA.1 and no later than 31 December of the relevant year, the following information in relation to its participation in cooperative approaches: (c) Authorizations and information on its authorization(s) of use of ITMOs towards achievement of NDCs and authorization for use for other international mitigation purposes, including any changes to earlier authorizations, pursuant to Article 6, paragraph 3; Decision 2/CMA.3, annex, paragraph 29 Each participating Party shall have, or have access to, a registry for the purpose of tracking and shall ensure that such registry records, including through unique identifiers, as applicable, authorization, first transfer, transfer, acquisition, use towards NDCs, authorization for use towards other international mitigation purposes, and voluntary cancellation (including for overall mitigation in global emissions, if applicable), and shall have accounts as necessary. Decision 6/CMA.4, annex I, paragraph 1(b) Each Party participating in a cooperative approach referred to in Article 6, paragraph 2, shall have, or have access to, a registry for the purpose of tracking that: (b) Records the actions relating to ITMOs, including authorization, first transfer, transfer, acquisition, use towards NDCs, authorization for use towards other international mitigation purposes and voluntary cancellation (including for overall mitigation in global emissions, if applicable); Decision 6/CMA.4, annex I, paragraph 7 Each participating Party shall ensure that the registry records information and data on authorization, first transfer, transfer, acquisition, use towards NDCs, authorization for use towards other international mitigation purposes and voluntary cancellation (including for overall mitigation in global emissions, if applicable). Decision 6/CMA.4, annex I, paragraph 20 The international registry shall enable, for each participating Party, the automatic pre- filling of the agreed electronic format and of other quantitative information requirements pursuant to decision 2/CMA.3, annex, chapter IV (Reporting), including in relation to authorized Article 6, paragraph 4, emission reductions.

First doc

Second doc

20 mentions of 6.4 in this 6.2 document

Unedited first section of UN press release

PRESS RELEASE

 

Bonn Climate Conference Closes With Progress on Key Issues, Laying Groundwork for COP28

 

UN Climate Change News, 15 June 2023– The Bonn Climate Change Conference closed today after two weeks of intense work that made progress on several critical issues, helping lay the groundwork for the political decisions required at the UN Climate Change Conference (COP28) at the end of the year.

 

“Having taken nearly two weeks to agree an agenda, it is easy to believe we are far apart on many issues, but from what I have seen and heard, there are bridges that can be built to realize the common ground we know exists,” said UN Climate Change Executive Secretary Simon Stiell. “World-changing agreements happen when negotiators rise to the occasion, reach out and find compromises, then manage to convince their capitals of the merit and necessity of those compromises.”